supply chain management of luxottica

SUPPLY CHAIN & LOGISTICS

MANAGEMENT

Global leader in eyewear/sunglassDesigns, Manufactures and distributes & retailsFashion, luxury and sports eyewear High technical and stylistic quality1961 founded in Agordo, Italy by Leonardo Del Vecchio Across 150 countries7,200 retail stores

12 manufacturing facilities 18 Distribution centres worldwide3 Showroom (Paris, NYC, LA)59% retail 2015 net sales41% wholesale net sales93 million eyewear manufactured 2000 design79,000 employees Net sales of approximately Euro 9 billion150 wholesaler (50 subsidiary)Competitors Walmart and online eyewear

LUXOTTICA INDIA • India consider as Emerging Market• Wholesale Subsidiary and manufacturing subsidiary • 210 employees Half in manufacture & half in wholesale• 35 retail store in India

PROPRIETARY BRANDS -• 68% SALE

LICENSED BRANDS -

MANUFACTURING -• Italy— 6 plants where it contribute 41% of global production • China & India— 2 plants it contribute 45% of global production • USA— 4 plants where it contribute 10% of global production • Brazil– 1 plants where it contribute 4% global production

LOGISTICS HUB -LOGISTICS HUB Units managed per day Italy (36,000 m2) 2,35,000 (Europe, the Middle East, Africa) China (26000 m2) 1,90,000 (Asia Pacific region) USA 1,50,000 (North America) REMAINING HUB - North America—5 Asia Pacific—2 South America—4 Europe—1

VERTICAL INTeGRATION -

LOGISTICS -

THIRD PARTY LOGISTICS -

ORDER PROCESSING -•Highly automated order management system• Stock reallocate to warehouse as per the local market demand.•Order processing were done by direct consumer within less

delivery time and cost and keep the inventory level low.

WAREHOUSING -Luxottica are having its own warehouse in Italy or otherwise it is using 3PL(JDA &SAP) for the warehouse management with automated technologies like WMS,WRS.

TRANSPORTATION -• Luxottica are using 3PL system which is outsourcing of a company’s fulfilment

transportation services to a 3rd party company.• Luxottica is using 3PL system which help the organisation to focus on the core

business/manufacturing.• Luxottica is using inbound and outbound transportation system.

INVENTORY MANAGEMENT -• Daily monitoring of global sales performance and inventory.• Optimisation of inventory in warehouse.• Reduction in cost and increase the in-stock postion 90-95%.

DISTRIBUTION -• Global distribution network• 18 distribution hubs -

1)11 in US

2) 5 in ASIA

3) 2 in EUROPE• 4 main distributers -

1) Sedico (Italy) in Europe

2) Atlanta in US

3) dungguan in China

4) jundai in Brazil• Retail stores and Wholesale networks of third party• 2-3 million pieces of inventory • 3,00,000 units per week to retail store• 1,70,000 units per week to wholesale• Efficient distribution network (customer)

WHOLESALE -

• Covers 150 countries – 50 are subsidiaries 100 are independent• 2002 - STAR (superior turn automatic replenishment)• End of 2015 STAR served 6300 stores.

RETAIL DISTRIBUTION -

• Strong portfolio(segment)• In Dec 2015 – 1) 7256 stores (35 India) 2) 676 franchise• 59% retail division• Unique understanding of the end users

RETAIL / STORE

OTHER THAN DISTRIBUTION ACTIVITY

+ +

250 MILLION PEOPLE AROUND THE WORLD SUFFER FROM THE POOR EYE VISION

AS TODAY LUXOTICCA IS ONE OF THE MOST LARGEST EYEWARE COMPANY WHICH HELP THE 7 MILLION PEOPLE WORLDWIDE AND PROVIDE FREE EYE MEDICAL CHECKUP IN BACKWARD REGION

THANK

YOU