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The Moncler logistics system is divided into two sub-systems, one for the industrial part of the supply chain (materials logistics) and the other for the distribution component (finished product logistics).
Moncler’s industrial logistics has a single-hub structure: the Italian hub in Castel San Giovanni, Piacenza, receives all raw materials and accessories from suppliers, both domestic and foreign, of all commodity groups, checks their quality, and divides them into work orders that are sent to the workshops that manufacture the garments. The flow of industrial logistics closes with receipt of the product at the Piacenza logistics hub, where the quality of the garments is checked to certify its suitability for being placed on the market.

Distribution logistics has a much more articulated organization as it must supply about 75 countries, as well as the

different sales channels in each of them, in which the brand is present. It is a network comprising different levels, where the first level collects all of the Company’s products, the second is a distribution reference point for one or more countries and, in cases characterized by a high concentration of business, also by a third level, which covers service needs of specific geographical areas.

In line with the challenges that Moncler has tackled in the last decade, in order to support a global business strategy centred on a direct relationship with end clients and with ever faster services, distribution logistics has been reorganized to equip the Company with cutting-edge technological and digital instruments that will allow it to respond to the increased complexity of the distribution flow system. This approach has ensured speed, traceability, serial number management and process automation.

In recent years, the logistics hub in Castel San Giovanni, Piacenza, has been expanded, strengthened, automated and enhanced in terms of the services provided. Quality control, including on the finished product, and repairs using state-of-the-art management tools are carried out directly at the hub. Since 2019 the entire serial number management system has been activated, supported by highly automated systems for hanging garments, and an automatic system will be activated with Shuttle technology for handling and storing boxed products.

Since the Autumn/Winter 2019 season, all products are subject to a final testing at the Piacenza hub and are also verified through an X-ray system with image archiving linked to the serial number of the single piece, as well as the archiving of the entire history of the single product unit put on the market.

Monitoring the environmental impact of the logistics process

Moncler does its best to implement logistics solutions that ensure not only operational efficiency and compliance with deadlines, but also respect for the environment. It supports and encourages its logistics partners to adopt sustainable systems and transport methods. Various initiatives have been implemented over the years to help minimize environmental impacts and costs, and others are under assessment. Four main drivers underpin Moncler’s commitment to a sustainable logistics system:

• identification of efficient routes in order to reduce distances travelled;

• optimization of flows in order to minimize movements;

• space-efficient packaging so as to ship the same product volumes in less space;

• use of transport vehicles with low environmental impact.

The Group has reorganized its logistics systems in recent years, focusing on the network as well as on operating procedures and processes, achieving tangible benefits in terms of efficiency and optimization of logistics flows.

It has also redesigned the packaging used to transport finished goods, which has considerably reduced the volumes of goods transported and thus the number of transport vehicles employed, thereby mitigating the environmental impact caused by air-polluting emissions. With regard to transport vehicles, Moncler is aware of the environmental impact of the different means of transport it employs. Subject to market requirements, the Group makes a conscious effort to limit, where possible, the use of air freight in favour of shipments by sea, so as to further reduce the environmental impact of its operations. With the collaboration of its logistics partners, over the last two years the Group has expanded the monitoring of CO2 emissions from the transport of finished products, from the distribution centres of the logistics network to all stores in the retail channel, the clients in the wholesale channel, and the e-commerce channel where directly managed by Moncler12. In 2020 it extended the analysis of logistics flows by monitoring the CO2 emissions generated by

the transport of raw materials sent out for garment making and by the transport of finished products to the logistics hub of Castel San Giovanni, Piacenza. In 2020, logistics emissions amounted to around 11,068 tonnes of CO2e13, of which 70% from the distribution of the finished product. For this latter category, although air transport was used for only a third of the goods transported by volume, the corresponding emissions amounted to over 96% of the CO2e emissions generated by the logistics flows taken into account. The Group is constantly committed to identifying and using more eco-efficient transport systems and methods that are able at the same time to guarantee operational efficiency and delivery times being met.

In 2020, through a pilot project, Moncler has also begun monitoring the impact of raw material transport from suppliers to the logistics hub in Castel San Giovanni, Piacenza. It is the Group’s objective to extend the analysis of logistics flows in 2021.

NOTE

12  Monitoring includes last-mile transport to the end client in Korea, the Americas, and Canada.

13  Well-to-wheels value (WtW), includes transport both to owned stores or proximity warehouses and to wholesale clients. It excludes a portion of the last mile of e-commerce flows (from warehouse to the end client) and a part of return flows from the store (to the warehouse). Logistics emissions have been calculated in accordance with GLEC Framework 2.0.