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Where possible, the Group employs local suppliers located near its main sites to benefit from logistical advantages, generate in- come and create employment opportunities in the communities where the Group operates. The majority of suppliers (89%) are based2 in the EMEA Region, primarily 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 careful to promptly identify critical situations that could cause po- tential supply disruptions and mitigate the related risk.
In light of the integration of the Stone Island brand, in 2021 the Group further refined its supply chain management strategy to launch a series of actions and initiatives involving critical sup- pliers assessed using a risk-based approach according to specif- ic sustainability parameters, including: the potential risk relating to human rights in the country where they operate, the type of good or service provided, with particular attention to raw mate- rials of animal origin and to the importance for the business, the presence of subcontractors, in addition to business evaluation criteria linked to quality, delivery times, the economic size of the orders commissioned, the financial dependence of the supplier and any difficulty in replacing the supplier in a short time frame.
SUPPLY CHAIN EXCELLENCE For several years, Moncler has been implementing its Supply Chain Excellence programme. It aims at bringing the supply chain to a level of excellence by developing the operational and indus- trial area according to an advanced model functional to cope with the constant changes of the market.
People and their contributions are the cornerstones of the entire programme. All company departments are involved in the work groups. The critical factors of today and those needed for the future have been analysed, and specific projects were therefore launched. All the projects share the aim of achieving operational excellence in terms of quality, time to market, sustainability, reli- ability, flexibility and efficiency.
Among the main initiatives implemented in 2021 there are: Collection Excellence: the Product Lifecycle Management
(PLM) platform was extended to all product lines and cat- egories. All information relating to the development of the collections is now in a single environment shared with all the relevant departments making the process more collab- orative and efficient. This project will continue in 2022 with
further developments and improvements, involving the re- design of workflows and the integration of the various com- pany management systems.
Supply Chain Collaboration: this project is aimed at creating a new collaboration platform that will give Moncler a higher visibility and control over all production phases with con- sequent advantages in terms of reactivity and operational flexibility. Though the project has been slowed down in re- cent years due to the Covid-19 pandemic, it was resumed in late 2021 and will become fully operational during 2022. The new platform will be shared with façon manufacturers, who will feature special applications that will allow to com- municate in real time with Moncler, thereby improving the management of raw material warehouses, production plan- ning, and inbound logistics.
Approach to continuous improvement: in line with the ob- jective of constantly improving the Supply Chain & Opera- tion processes, the management team regularly meets to monitor and assess operating performances.
Continuous improvement of garment quality: the pro- cess path aimed at strengthening internal technical skills continued to ensure constant oversight of the design, in- dustrialisation, pre-production and production phases, whether performed internally or at suppliers premises. This approach will continue over the coming year, increasingly focusing on the quality of upstream processes thus contrib- uting to reduce possible finished products defects.
Continuous improvement of the quality of raw materials: in line with the attention posed on the quality of the garments produced, the improvement process focused on the quality of raw materials also continued. The objective of the project is to promptly identify any qualitative issue and defect in or- der to reduce the risk of non-compliance and improve the overall level of service of the supply chain. The activity, ini- tially focused on the yarn and knitwear division, will be ex- tended in 2022.
Transportation traceability: a project has been launched to track shipments accurately, from raw materials to distribu- tion of the finished product, providing timely information on their progress at the various phases. In this regard, an ad hoc report will be made available during 2022.
Moncler by Me: during 2021 a new project called Mon- cler by Me was launched to offer clients the opportunity to create and purchase a customised jacket. The project, launched at the Paris Champs-Elysées store in September 2021, will also be extended to other stores and to the e-com- merce channel over the upcoming years. To support this service, Moncler has dedicated a production process and a department of its production site in Romania to the creation of customised garments, where the best technologies and expertise are applied to ensure the quality of the process- ing. See also page 149.
3D Project: from 2018, Moncler has started integrating 3D technology into the product development process. The dig- ital design minimises the need for physical samples, leading to the reduction of waste, of development times and of pro- duction costs for prototypes. This makes it possible to dig- itally adjust the fi t and fi nd the correct proportion for each size, and to assess the performance of the fabrics, colours and patterns. On average, starting from 100 virtual garments it is then proceed with the actual prototyping of 30% of them.
Zero Waste Project: in 2021, all the obsolete materials (fab- rics, components, etc.) present at the main Moncler ware- house, have been classified and assessed. This activity allowed to have a precise vision of the inventories, making them available for the production of the new collections and thus reducing generated wastes.
Lastly, in 2022, to promote the inclusion in the Company of techni- cal personnel specialised in the fashion sector, Moncler will launch the MATE (Moncler Academy for Technical Excellence) programme to create a school of craftmanship aimed at training the technical personnel required to develop the business, such as prototypers, pattern makers and quality experts. See also pages 103-104.
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