Supply Chain for Amway

Topics: Amway, Direct selling, Corporate social responsibility Pages: 7 (1969 words) Published: July 28, 2010
Meeting global responsibilities by caring for communities

Successful businesses do more than simply provide goods and services for customers. They also make a real contribution to the communities in which they operate. Successful ethical enterprises: • create employment and job security • provide products that give consumers good value for money • contribute to creating a more caring and cared for community and hence a better world. Amway provides a good example of a business that recognises its wider responsibilities. It is one of the world’s largest direct sales companies. Amway works with around 3 million Independent Business Owners (IBOs) in more than 80 countries. These IBOs are the link between Amway and the final consumer. They are also Amway’s links with citizens and communities across the globe.

In the UK Amway distributes a variety of products, including: Personal Care Skin Care & Colour Cosmetics Durables Nutrition and Wellness Catalogue Items Home Care Fragrances, body care and hair care products A range of skincare and colour cosmetics Cookware and water treatment systems Food supplements, food and drinks Third party electrical goods Laundry, cleaning, and car care products

As well as its business aims the company has a range of social aims that are part of a ‘Global Cause Program’. These are outlined below. The world’s most respected companies recognise that being a good corporate citizen means supporting causes that matter to the communities in which they operate. This is why Amway Europe has created links with the United Nations Children’s Fund (UNICEF). UNICEF is a global champion for children’s rights. It seeks to make a lasting difference and improve children’s lives.

The United Nations Convention on the Rights of the Child sets out the right of all children to reach their full potential. It is the foundation of UNICEF’s work. Working with UNICEF, Amway has launched an exciting pan-European fundraising campaign for children. It recognises the importance of building good working relationships with UNICEF’s National Committees in each market in order to rollout fundraising programmes to Amway’s IBOs and their customers.

• efficient distribution: ensuring products reach IBOs on time and in top condition • product promotion and IBO support e.g. supplying brochures to IBOs. Getting the image right is vital in a business that relies on building relationships with individuals and the wider community. IBOs often sell directly to friends and it is essential to provide high quality, value for money products with a 100% satisfaction guarantee. Amway spends time, money and effort on creating an appropriate design and appearance for Amway products. It also develops campaigns that support the business and social aims of the company.

02_Direct selling and supply chain
A supply chain contains a set of links that bring finished products to end consumers. As a direct selling company, selling consumable products directly to consumers and bypassing the traditional ‘retail’ or ‘high street’. Amway has its own distinct chain, placing. a strong emphasis on IBOs who are able to focus on individual customers and their needs. Amway manufactures the majority of its own brand products at their manufacturing plant in Ada, Michican. It then distributes these directly to the IBOs through a centralised warehouse in Venlo, Netherlands. Having signed a contract to work within Amway’s Rules of Conduct and Code of Ethics, IBOs are trusted to operate flexibly within a ‘self regulatory’ environment. They develop direct supply channels and sell products to friends and customers that they know or meet. Amway’s Supply Chain Raw materials Amway manufacturing and distribution Amway (Lead organisation. Head Office in USA) Regional affiliate organisations e.g. Amway (UK and Ireland)

IBOs End consumers

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