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Speed and efficiency enhance best-in-class service. Agordo October 1, 2012

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Speed and efficiency

Agordo – October 1, 2012

Speed and efficiency

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Certain statements in this investor presentation may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to, our ability to manage the effect of the uncertain current global economic conditions on our business, our ability to successfully acquire new businesses and integrate their operations, our ability to predict future economic conditions and changes in consumer preferences, our ability to successfully introduce and market new products, our ability to maintain an efficient distribution network, our ability to achieve

Forward looking statements

products, our ability to maintain an efficient distribution network, our ability to achieve and manage growth, our ability to negotiate and maintain favorable license arrangements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, our ability to protect our proprietary rights, our ability to maintain our relationships with host stores, any failure of our information technology, inventory and other asset risk, credit risk on our accounts, insurance risks, changes in tax laws, as well as other political, economic, legal and technological factors and other risks and uncertainties described in our filings with the US Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation to update them.

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Agenda

Go-to-market: beyond best-in-class service, towards an integrated approach

Global Operations overview

Engineering: craftsmanship and the striving for excellence in technique

Supply chain: scheduling products’ journey across five continents

4 Supply chain: scheduling products’ journey across five continents

Logistics: closer to customers, wherever they are

Operations 3-year plan: further extending Luxottica’s capabilities

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Go-to-market

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A game changing transformation Customer

> Customer profiling and segmentation

> Dedicated in-store specialists

> Luxottica Days events

A proactive, customer-centric evolution

6

Product

> Segmentation and line planning

> Exclusive products and activities

> Enhanced storytelling and training with digital tools

(7)

Further driving efficacy and efficiency

New styles

launched per year Frames

manufactured

+25%

-10%

Special projects & limited distribution

+41%

Portfolio optimization

Excluding Tecnol 7

2010 2011 2012 2010 2011 2012

-10%

(8)

A consumer-centric calendar

Logistics

In store

Prada Parallel Universe

8

Manufacturing

Engineering

Product design

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Getting closer to the consumer

2009

2012

Optimizing the product offer

Traditional commercial model Traditional wholesale Third-party distributors STARS Key Accounts Top Accounts Partnership in assortment definition and supply services E-commerce Luxottica retail Direct dialogue with final consumers 9

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LONDON

LONDON DUBAIDUBAI

MILAN

MILAN PARISPARIS

Planning sophisticated product launches

10

60 top cities, 6 special countries and 4 macro-areas

>1,000: internationally distributed styles >150: limited area distribution styles

>30: market specific exclusive styles

SYDNEY

SYDNEY NEW YORKNEW YORK

SHANGHAI

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Go-to-market 3.0

Integrated approach delivering beyond best-in-class service

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Global operations’ overview

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Operations ID

11

plants

4

Logistic hubs

3

Technologies

13

~40

mn sun lenses

~75

mn frames

17,500

Luxotticans

Behind each of our glasses there is a story

of quality, commitment, passion…

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Expanding manufacturing footprint

85%

Italy

15%

China

2006

14

Optimized footprint has driven speed and flexibility

3%

Brazil

40%

China & India

50%

Italy

7%

US

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Vertical integration: speed & control

Engineering Go-to-market S u p p ly c h a in

New products time to market

(weeks)

-44%

Continuous products re-order lead time

(weeks) -43% 15 Manufacturing Logistics S u p p ly c h a in Q u a lit y 2009 2012 -44% 2009 2012 -43%

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Federico Buffa, engineering

Enrico Mistron, supply chain

Operations assets in-depth

Engineering Manufacturing S u p p ly c h a in Q u a lit y 16

Fabrizio Uguzzoni, logistics

Carlo Salomoni, quality

Manufacturing Logistics S u p p ly c h a in Q u a lit y

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Engineering

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Ideal balance between style and technology

Prototypes

Tech design

Tools

2

2

3

3

4

4

Engineering Manufacturing S u p p ly c h a in Q u a lit y 18

Samples and process

Ready for mass production

0

0

1

1

2

2

Manufacturing Logistics S u p p ly c h a in Q u a lit y

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Campaign launch drives development timing

New products time to market

(weeks)

2009 2010 2011 2012

-44%

19

Closer & closer to the market

Timing in line with marketing and license campaign

Design for manufacturing &

assembling to minimize production lead time

Tooling standardization to boost flexibility

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Enriching collection New concepts New decorations New finishing

Always innovating: the ultimate R&D for materials

20

Product differentiation Materials

Technology Treatments

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Advanced technical modeling: translating style briefing into 3D projects without losing elegance and fitting

Quality starts from tools:

designing tools and surface

Product engineering

21

designing tools and surface

treatment to assure quality and lean production

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Automation

High tech equipment and automation for precision operation

Process

Industrial engineering, a combination of

craftsmanship and high tech equipment

22

Craftsmanship to design and create unique jewels

> Decoration coloring

> Precious stone assembly

> Leather & enamel finishing

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US Brazil Italy China

Technical offices located across four continents,

but using only one common system

23

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Supply chain

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Planning across

Demand forecasting

Inventory and capacity planning

Scheduling products’ journey

Engineering Manufacturing Su p p ly c h a in Q u a lit y 25

Defining manufacturing phases

Reaching customers in time

Manufacturing Logistics Su p p ly c h a in Q u a lit y

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Coach launch:

reactiveness and speed

Weekly demand update

Additional capacity needs: +30% in 3 months

26

Fast planning process applied to 30 brands

Fine-tuning of customer allocation

Fast track in production

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Lead time (days)

-43%

DSI (days)

-8%

Backorder (days)

-36%

Unparalleled results

A continuous and dedicated effort to speed

27

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Logistics

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Logistics: serving directly 200,000 doors

Getting closer to wholesale customers and retail locations through

Fostering sophistication in service

Engineering Manufacturing S u p p ly c h a in Q u a lit y 29

…service, speed, efficiency…

Reorganizing DCs and network Reducing obsolescence and local inventory Manufacturing Logistics S u p p ly c h a in Q u a lit y

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Logistics efficiency: action, not words!

Cost per unit (€)

-12% Service level

(customer view) +30%

30

Best-in-class service level

2009 2010 2011 2012

2009 2010 2011 2012

On full On time

1st delivery: fill rate & lead time Order closure: shipments & days

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Emerging markets: same proximity as mature ones

1.7 days on average -13% vs. 2011

Europe

31

2.3 days on average -48% vs. 2010

The last mile everywhere

China

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Group Operations: 3-year plan

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Expected improvements

Lead time reduction (days)

Engineering

-29%

Supply chain

-33%

Manufacturing

-33%

Logistics

-25%

Benefits reflected in revenues and costs

33

-29%

2012 2015E

-33%

2012 2015E

-33%

2012 2015E

-25%

(34)

Production expansion, accordingly to demand

US Brazil Italy China & India

34

2015E 2015E 2015E 2015E

(35)

Further boosting product and process complexity

Decorations

> State-of-the-art decoration factory

> New technologies

China: leading excellence

Sun lenses

> Improved know-how for both plastic and crystal lenses

> Producing full range of Ray-Ban and Oakley polarized lenses

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Brazil’s leading manufacturer

Vertically integrated from design to distribution

Approx. 3 million units in 2011 Metal and plastic injection

> State-of-the-art technologies and manufacturing

An efficient integration

“Made in Brazil” from … today!

36

and manufacturing processes

Just launched Vogue for Brazil Ray-Ban and Oakley production planned for 2013

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Growing production capacity

Emerging markets, a driving force

Striving for innovation Technology

Over €200 million in investments over next three

years

37

Technology Processes Products

IT platform creating efficiencies

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2015 production capacity: <50% in Western countries, >50% in

emerging markets

2015: 100 million frames produced

Operations overall lead time reduction of 30%

Inventory reduction 20% in 3 years

Key takeaways

Inventory reduction 20% in 3 years

38

For us the story of a pair of glasses is always a story

written by hand, with a human touch

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Australia

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Strengthening the business proposition in Australia

Aggressive Global financial

crisis Proposition

transformation

What have we learned?

Consumer confidence crisis & dual economy

40 Growth, scale &

product advantage

Further building a sustainable advantage

Aggressive

competition Super brands

2003-2008 Growth &

leverage

2010-2012

Enhancing pillars of growth

2008-2010 Rebuild

2013 > Growth

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Fast growth

Retail footprint increased by approx. 200 stores

Leveraged Group supply chain

2003-2008

Growth & leverage

41

Leveraged Group supply chain

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Global financial crisis and dual economy in Australia

GDP boosted by mining Struggling retail

environment, consumer confidence crisis

2008-2010

Structural reset of the Australian market

42

confidence crisis

A new, aggressive competitor Prices come first

Attacked premium offering

(43)

2010

Back to heritage

43

A burning platform already in place

Creating a burning culture all across the organization

Flexible, fast and bold

(44)

Focusing on OPSM brand roots Quality

Energy

Consumer-oriented approach

2010-2012

Enhancing pillars of growth

44

approach To reach…

….highest standards of eye care in the country

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A sustainable base from which to grow the

business

2012

Building further solid foundation

45

Customer service-centric approach

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Driving changes to seize opportunities

46

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Reaping the benefits of strategic repositioning

17 months of positive comps at OPSM, accelerating in 2012 1H 2012: +9%

3Q 2012: further acceleration

Retail footprint reorganization, 15 months ahead of plan 97 stores closed and 16 to go

47

46 rebranded and 11 to go Transformed shared services

>20% reduction in head count as of September

Further engaging the customers in 2013 and beyond:

Accufit, training, omni-channel

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Investor Relations team

Alessandra Senici

Tel. +39 (02) 8633 - 4662

alessandra.senici@luxottica.com

Nicoletta Russo

Tel. +39 (02) 8633 - 4718

nicoletta.russo@luxottica.com

Elena Dimichino Elena Dimichino

Tel. +39 (02) 8633 - 4038

elena.dimichino@luxottica.com

Elisa Cattaruzza

Tel. +39 (02) 8633 - 4870

elisa.cattaruzza@luxottica.com

References

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