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The Moncler Group’s logistics system consists of two sub-systems, one for the industrial part of the supply chain (materials logistics), while the other for the distribution component (finished products logistics). The former concerns the supply chain, which starts with the suppliers of materials and components and ends with the manufacture of products in the various product categories. The latter relates to the transfer of the finished product to the various sales channels (retail, wholesale and e-commerce).

In 2021 Stone Island and Moncler kept their industrial logistics separate. In particular, Moncler’s configuration is single-hub: the Italian hub in Castel San Giovanni (Piacenza) receives raw materials and accessories from suppliers, both domestic and foreign, of all product categories, checks their quality and sorts them into work orders that are sent to the workshops that manufacture the garments. The flow of industrial logistics closes with the receipt of the finished products at the Piacenza logistics hub, where the quality of each item and accessory is checked to certify its suitability for being placed on the market.

For Stone Island, all the activities related to the industrial logistics are managed at the Stone Island Logistics warehouse, internalised since 2020.

Moncler’s distribution logistics is much more complex as it must supply the approximately 75 countries in which the Brand is marketed, as well as the different sales channels in each of them. It is a network of different levels, where the first level acts as a collector of all the Company’s products, the second as a distribution hub for one or more countries and, in cases characterised by strong concentration of the business, by a third level which covers service requirements of specific geographical areas. At Stone Island, finished product logistics is handled by an independent third party, except for some countries where transport is handled directly by the wholesale channel. In 2021, while Moncler focused on internalising the e-commerce channel at global level, Stone Island laid the foundations for integrating the Brand’s logistics flows into the Group ones.

In the recent years of pandemic, the logistics system has faced many challenges: from the need for continuous review of supply locations and modes of transport linked to the reduction of air traffic to the increase of maritime traffic volumes and to the acceleration in the development of all forms of e-commerce.

Together with the internalisation of the e-commerce management and the integration of Stone Island, these challenges are leading the Group to rethink its logistics system to better respond to changing external conditions and internal needs. The tools in the distribution flow system, on the cutting edge from a technological and digital point of view, adopted by both Moncler and Stone Island in recent years have helped to ensure speed, traceability, matrix management and automation of processes. However, it is clear that logistics must face a further challenge: offering services that are increasingly faster and closer to the client, in terms of omnichannel service while respecting the environment.

MONITORING THE ENVIRONMENTAL IMPACTS OF LOGISTICS PROCESS

The Group seeks to implement logistics solutions that ensure effectiveness and operational efficiency as well as compliance with delivery times alongside with the attention to the environment. It encourages and supports its logistics partners to adopt increasingly sustainable systems and transport methods. Various activities have been carried out over the years or are under evaluation to minimise environmental impacts and costs.

The main streams of the Moncler Group’s commitment towards a low impact logistics system are:

• identification of efficient routes to reduce distances travelled

• optimisation of flows to minimise movements

• space-efficient packaging to deliver the same volume of product in less space

• packaging with lower environmental footprint

• use of means of transport with a lower environmental impact.

In recent years, Moncler has modified the packaging used to transport finished products, resulting in a significant reduction in volumes transported and thus in the need for vehicles and, consequently, in the environmental impacts generated in terms of greenhouse gas emissions.

Over the last two years, the monitoring of CO2 emissions from the transport of finished products from the distribution centres of the logistics network to all the stores in the retail channel, clients of the wholesale channel and the e-commerce channel, where directly managed by Moncler13, has been expanded. In 2021 the analysis of logistics flows was expanded by extending the monitoring of CO2 emissions generated by the transport of raw materials sent for garments making and by the transport of end products to and from the logistics hub of Castel San Giovanni (Piacenza) and Stone Island Logistics, as well as to stores. In 2021, flows of raw materials from suppliers to the hub in Castel San Giovanni (Piacenza) were also included in the scope.

Moncler’s logistics emissions for the year amounted to approximately 18,114 tonnes of CO2 e14, of which 59% related to the distribution of finished products. For this latter type, although in 2021 air transport accounted for one-third of goods transported by volume, the corresponding emissions amounted to more than 96% of the CO2 e emissions generated by the logistics flows considered. Since 2021 also Stone Island’s logistics emissions have been monitored.

The Group is constantly committed to identifying and using more environmentally efficient transport systems and methods to ensure operational efficiency and delivery times being met. In 2021 Moncler launched last-mile emissions offsetting services for the e-commerce channel for Korea and Japan and for the Americas and EMEA Regions it joined the UPS® carbon neutral service.

NOTES

 

13 Monitoring includes transport to the end client, last mile, in Korea, America, Canada, EMEA, Japan and the United Kingdom.
14 Well-to-Wheels (WtW) value. Emissions from logistics transport have been calculated in accordance with the GLEC Framework 2.0. The 2021 figure is not comparable with the 2020 figure as the reporting scope has been expanded.