Download - Louis Vuitton New Supply Chain
LOUIS LOUIS VUITTONVUITTON
Jean Charles HodouinJean Charles HodouinLIM New York 2012LIM New York 2012
Company Company BackgroundBackground•Paris,1854Paris,1854•Trunks, Luggage, Trunks, Luggage, BagsBags•LV MonogramsLV Monograms•Tradition, InnovationTradition, Innovation•1977: 2 Stores.$10m1977: 2 Stores.$10m
BackgroundBackground
• 1983 – Louis Vuitton Cup
• 1987 – LVMH is born• 1988 – Profits +49%
• 1989 – 130 stores worldwide
BackgroundBackground
BackgroundBackground
1990 – Yves Carcelle, President LV
1998 – Marc Jacobs, Artistic Director
2003 – Multi color monogram
OperationsOperations
MarketingMarketing
MarketingMarketing
MarketingMarketing
MarketingMarketing
Office Office ManagementManagement
“Developing knowledge and versatility, recognizing creativity, encouraging independence and a
continual focus on enhancing performance are all integral to our
training policy.” ~ LV’s HR 2011
Financial Financial ManagementManagement
Legal Legal ManagementManagement
Old Supply ChainOld Supply Chain Each factory - 250 employees
Each specialized in one production step
20 to 30 craftsman = 1 Louis Vuitton tote bag
Hard to transfer employees
Difficult to produce more
Couldn’t cover the high-demand = Lost Sales
Factories not flexible
The supply chain process - inefficient and slow
New Supply New Supply ChainChain
2005 –McKinsey & Co
New products every 6 weeks
New distribution center global distribution
center outside Paris 6 regional
distribution centers around the world
These 6 distribute the products to the stores
Pegase
Carmakers Manufacturing process – lean production
Zero-defect policy
13 factories that produce accessories
Employees are less specialized
Organized in team formats
Manufacturing Process
Distribution Process
New Supply New Supply ChainChain
New store and distribution strategy
•Keepall Reorganization:
•Managers/Feedback
•Right products in the right stores
•2 Teams – Stock room/Sales Floor
Maintain brand identity + high quality
Reduced returns 50%
Increased sales, increased stock
Maintaining10% annual growth for the next several years
Overall ResultsDistribution Process
Technology in Operations: E-learning system EKP
Training: soft skills, system usage, anti-counterfeiting-training, internally and externally sourced coursework
Cost-effective, offers educational diversity and flexibility
Easy accessible and user-friendly
TechnologyTechnology
LANDesk Management Suite high PC security
Maintain on high level of performance
PC systems up-to-date and well-managed
Shortens security patch development times, reduces man-hours, eliminates interruption, reduced network traffic
TechnologyTechnology
Product Lifecycle Management Widely acknowledged in apparel, fashion,
and accessory industry
End-to-end footprint solution
PDM, merchandise, supplier collaboration, & performance-management
Reduction of product failure risks, material costs, process friction & lead times
TechnologyTechnology
Technology in Supply Chain I2 solution suite
Closing the gap between demand and supply
Demand planning with forecasting processes & statistical techniques
Improved forecast accuracy
Increased velocity
TechnologyTechnology
PartnersPartners
Services Integrated modern system which also
connect with the retail system (POS)
Tool of flexible management and advanced administrative information
Accommodate management of multi-attribute items
JD EdwardsJD Edwards
Services Integrated network including US, Canada
and Mexico
Lowest cost
Quality
Sustainability
DB SchenkerDB Schenker
Services Keep the right mix of product in stock
Hottest and fast-selling items
Rush orders
Web-based FedEx App
FedExFedEx
Services One stop-source
Customized boxes
ISO 9001
E-truck routing system
LandsbergLandsberg
Services Fundamental overhaul
New factory format (Pegase)
Manufacturing process more flexible
Ship fresh collection every six weeks
Global distribution hub outside Paris
McKinsey & Co.McKinsey & Co.
"Behind the creative magic of Louis Vuitton is an extremely
efficient supply chain” Quality Management Systems, J.I.T. and
fulfillment services
Variety of value-added services including monitoring inventory levels
Support and technology to do so
Best PartnersBest Partners
Best Practices
LOUIS LOUIS VUITTONVUITTON
