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The Moncler logistics system is divided into two sub-systems, one for the industrial part of the supply chain and the other for the distribution component. The first is commonly referred to as “materials logistics” and the second as “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 the 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.
The distribution logistics has a much more articulated organisation 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 characterised 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 the direct relationship with end clients and with ever faster services, in 2017 a project was launched to redesign the distribution logistics. Currently nearing completion, it is aimed at equipping the Company with cutting-edge technological and digital instruments that will allow it to respond to the increased complexity of the distribution flow system. Project activities
focused on the following key elements: speed, traceability, serial number management and process automation. The logistics hub in Castel San Giovanni has been expanded, strengthened, automated and enhanced in terms of the services provided. Since 2018, the hub has been progressively carrying out quality control activities on the finished product as well as repairs using state-of-the-art management tools. In 2019, the entire serial number management system was activated, supported by highly automated systems for hanging garments, and by the early months of 2020, an automatic system will be activated with Shuttle technology for handling and storing boxed products. From the Autumn/Winter 2019 season, all products underwent final testing at the Piacenza hub and were 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.
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 minimise environmental impacts and costs, and others are currently under assessment. Four main drivers underpin Moncler’s commitment towards a sustainable logistics system:
• identification of efficient routes in order to reduce distances travelled;
• optimisation of flows in order to minimise 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 reorganised 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 optimisation 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, the Group has extended the monitoring of CO2 emissions relating to the transport of all finished products, from
distribution centres of the logistics network to all stores in the retail channel and clients in the wholesale channel. In 2019, it was estimated that these emissions were equal to approximately 9,452 tonnes of CO2 equivalent16. Although air transport was used for only a third of the goods transported by volume, the emissions represented by this method of logistics amount to over 95% of the CO2 e emissions generated by 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. During 2019, through a pilot project, Moncler also began monitoring the impact relating to the transport of raw materials sent for garment packaging, with a focus on the main production countries, including Romania. It is the Group’s objective to extend the analysis of flows during 2020.
16 Well-to-wheels (WtW) value, the figure includes transport both to owned stores or proximity warehouses and to wholesale clients. It excludes the last mile of e-commerce flows (from the warehouse to the end client) and a part of the return flows from the store (to the warehouse)..