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LOGISTICS SYSTEM

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 part. 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 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 more than 70 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.
In the period 2018-2020, it will provide the Company with cutting-edge technological and digital instruments that will allow it to respond to the increased complexity of the distribution flow system. The vision of the project is based on four key elements: speed, traceability, serial number management and process automation.
The logistics hub in Castel San Giovanni has been expanded by about 20,000 m2, 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 the first half of 2019, the entire serial number management system will be 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.
Moncler is investing about 15 million euros in the expansion and automation of its logistics hub. As early as the Autumn/Winter 2019 season, all products will undergo final verification at the Piacenza hub and will also be 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 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 redesigned its logistics organisation 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.
Thanks to the collaboration of its logistics partners, the Group started monitoring the CO2 emissions from road transport of finished products from the logistics hub in Castel San Giovanni, Piacenza, to all owned shops. In 2018, the emissions generated by the Company’s key logistic partners were estimated at approximately 1,800 tonnes of CO2 equivalent(1).

NOTES

1 The data refers to transport to owned shops and local warehouses, as well as to wholesale shops.

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