Avon makes key appointment as part of restructuring targets
Powell, who will report to Avon CEO Sheri McCoy, will play an integral part in the governance of the company’s global logistical operations, including sourcing, manufacturing, logistics and delivery.
The other aspect of Powell’s two-pronged appointment will be to head up what the company refers to as its ‘transformation efforts’.
This will see Powell responsible for processing efficiencies, office management cost savings, and transforming the company’s old service model in an effort to simplify the efforts of the Avon direct sales force.
Tapping into extensive turnaround experience
Powell has extensive executive experience in the field of process implementation, supply chain, R&D, IT branding and sales, in a career that has taken him worldwide, working for companies like Johnson & Johnson in regions that included Asia Pacific, the EU and Russia.
Most recentcly he has held the position of managing partner at Midreef Partners, where he has provided consultation services to medical technology, turn-around and private equity businesses.
"Taking complexity out of the organization while maintaining high product quality and improving service quality for our Representatives is essential to Avon's successful turnaround and future growth," said McCoy.
"David has a strong track record of leading business transformation and generating growth for large global companies. He is the right fit for this critical job and a great addition to the Avon management team."
Avon continues to struggle financially
For its most recent third quarter, ending in September 2012, the company announced that sales for the quarter were down 8 percent to $2.6bn, which represented an increase of 1 percent in constant dollar terms reflecting unfavorable foreign currency translations and shrinking market share.
Net profits were down from $164.2m in the corresponding period last year, to $31.6m, a figure that reflected the slower sales, together with increased expenses resulting from the company's comprehensive restructuring program.
The company has been struggling to maintain its market share for the past two years and is now targeting significant operational cost savings and an enhanced personnel structure in an effort to put the company on a more profitable track and speed up the recovery in its performance.