Here Luxottica developed an innovative automated handling system composed of smart robots (Automated Guided Vehicles) guided by software that instructs them to pick up items from the conveyor belt and take them to be labelled within the prescribed time limit. Applied in one of the biggest growth areas, added value services for customizing orders (labels, cards, stamps), it has huge advantages with regard to flow regulation and flexibility. In addition, it is an ergonomic system, facilitates the work of operators and reduces the risk of accidents. The Dongguan hub was opened in 2006 and manages an average of 190,000 units per day. The growth in the Asia-Pacific region has made this hub a strategic part of the Group’s distribution network. Luxottica continues to invest in ways to improve services and increase capacity in order to create even greater efficiencies in the region. The Atlanta facility, opened in 1996, has consolidated several North America-based facilities into a single state-of-the-art distribution center located close to one of the major airport hubs of the United States. It serves both Luxottica’s retail and wholesale businesses in the North American market. This facility manages up to 150,000 units per day. In 2013, the Group opened a distribution center in Jundiai, close to São Paulo, which offers targeted distribution services to customers and serves the local market. The Group has made strategic investments to build a new distribution center in China and to triple the size of the distribution center in Atlanta.
This case has been prepared on the base of public information for teaching purposes only Logistic Hubs Distribution Luxottica’s global distribution network, including retail chains and a wholesale network of third party stores, is one of the Group’s core strengths. It extends to both developed and emerging markets, where it has made substantial investments over the last few years. Wholesale Distribution The wholesale distribution network covers more than 150 countries, with over 50 commercial subsidiaries in major markets and approximately 100 independent distributors in other less developed markets. In 2017, Wholesale accounted for 39% of annual sales. Wholesale customers are mostly retailers of mid to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, duty-free shops and online players. Certain brands, including Oakley, are also distributed to sporting goods stores and specialty sports locations. In addition to giving wholesale customers access to some of the most popular brands and models, Luxottica provides them with pre- and post-sale services to enhance their business and maintains close contact with distributors in order to monitor sales and the quality of the points of sale. In 2002, Luxottica introduced the STARS program within its Wholesale division, a true service innovation that leverages Luxottica’s knowledge of local markets and brands to deliver fresh, high-turnover products to customers and maintain optimal inventory levels at each point of sale. By strengthening the partnership
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- Spring '19
- Sunglasses, Luxottica