133 BE FAIR132 BE FAIR MONCLER GROUP 2022
VALUE OF ORDERS BY GEOGRAPHICAL AREA
Where possible, the Group employs local suppliers located near its main sites to benefit from logistical advantages, generate income and create employment opportunities in the communities where the Group operates.
Most suppliers (90%) are based2 in the EMEA Region, primar- ily in Italy.
The Group distributes its purchasing expenditure, so as to avoid situations of dependence on its suppliers that could repre- sent a risk for the business. With regard to concentration, the top 40 suppliers account for 50% of the value of orders. The Group is care- ful to promptly identify critical situations that could cause potential supply disruptions and mitigate the related risk.
The Group periodically identifies its critical suppliers to in- volve them in targeted actions and initiatives. This identification process is based on a risk-based approach that takes into account, in addition to their importance to the Group in terms of the eco- nomic value of the orders commissioned, quality, delivery times, financial dependence of the supplier, and the Group s ability to en- sure the supply of goods and services if it has to replace a supplier quickly, and specific sustainability parameters, such as: the poten- tial risk relating to human rights in the reference country, the sourc- ing of key raw materials with potential social and environmental impacts and the supply of strategic processes for the Group, with a particular focus on raw materials of animal origin and on the rele- vance to the business.
SUPPLY CHAIN EXCELLENCE Moncler has been implementing its Supply Chain Excellence pro- gramme for years. It aims to bring the supply chain to a level of excellence by developing the operational and industrial area ac- cording to an advanced model functional to coping with a constant- ly changing market.
People and their contributions are the cornerstones of the entire programme. All company departments are involved in work- ing groups. Today s critical factors of success were analysed, along with those needed for the future, and specific projects were there- fore launched, all with the aim of achieving operational excellence in terms of quality, time to market, sustainability, reliability, flexi- bility and efficiency.
The main initiatives in 2022 included: Collection Excellence: the Product Lifecycle Management
PLM platform was extended to all product lines and cate- gories. All information relating to the development of the collections is now in a single environment shared by all the functions involved in the process, increasing its sharing and efficiency. In 2022 the platform s operational functional- ities were refined, and further developments are expected in 2023, including the expansion of data to include other com- pany management softwares.
Supply Chain Collaboration: the project aimed at creating a new collaboration platform that will allow Moncler to increase visibility and control of all production phases with conse- quent advantages in terms of reactivity and operational flex- ibility slowed in recent years due to changing economic and political context related to the Covid-19 health emergency, among other factors. The project was resumed in 2021 and will become fully operational in 2023. The new platform will be shared with façon manufacturers, who will have special applications to communicate with Moncler in real time, there- by improving their management of raw material warehouses, production planning, and incoming logistics.
Data-based scientific approach: in order to constantly im- prove supply chain management processes, each month the management team meets to monitor operating performance based on a set of indicators that analyse the performances of the various operating areas of Supply Chain & Operation processes.
Continuous improvement of garment quality: the process of honing internal technical skills continued to ensure constant oversight of the design, industrialisation, pre-production and production phases, whether performed internally or by sup- pliers. This approach entails a constantly increasing focus on the quality of upstream process execution that will help re- duce possible non-conformities of finished products.
Shipment tracking: in 2022 a project was launched for accu- rate tracking of shipments, from raw materials to distribution of the finished product, providing timely information on the progress of the various phases, including through an ad hoc report. In 2023 this system will also be extended to repair or- ders for the garments produced, and tracking of shipments will be integrated into the supplier portal.
3D Project: In 2018 Moncler started to integrate 3D tech- nology into its product development process. Digital design minimises the need for physical samples, reducing waste, development times and prototype production costs. This makes it possible to digitally adjust the fit, find the right pro- portion for each size and check the rendering of different fabrics, colours and patterns. On average, 30% of virtual gar- ments are actually prototyped. In 2022 the Group launched the first 3D modelling course with the goal of gradually form- ing a multidisciplinary group capable of responding quickly to collection development needs.
Zero Waste Project: all obsolete materials (fabrics, compo- nents, etc.) in the Moncler brand s main warehouse began to be classified and verified starting in 2021. This activity al- lowed to have a timely view of inventories, making them avail- able for the production of new collections, thus reducing the generation of waste. Recovery activity intensified in 2022, thanks in part to the formation of a team dedicated to the continuous search for fabrics and accessories in the ware- house to be reused in the new collections.
Early Product Engineering Programme: companies with a strong propensity for innovative design, such as Moncler, tend to experience issues of various kinds close to the launch of the sample collection into production, with a consequent significant negative impact at the level of economic perfor- mance, time, cost and waste. The Early Product Engineering Programme enables any critical issues to be identified and addressed in advance with all development teams so that the problem can be solved quickly: the so-called, design for manufacturing.
3% Americas
45% Italy
16% Asia
36% EMEA (excl. Italy)