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While the luxury industry is benefiting from increasing global demand, it is also having to adapt to clients’ changing expectations: consumers have a growing taste for novelty, customisation and a fluid, customer-oriented omnichannel experience, as well as increasing expectations that companies take responsibility for social and environmental issues in relation to their business. 

Challenges

These market evolutions are driving the traditional luxury industry towards business transformations in order to stay competitive. There are particular challenges including a need to improve attractiveness through faster product launches and total customisation.  This requires reinventing product development processes including 3D conception and “lean” cycles. Luxury goods companies also need to transform effectively to omnichannel retailing, offering custom-fit services guaranteeing a perfect fluidity between channels. Another challenge is to optimise collection management (control of breadth and depth) through a location-based assortment approach, relying in particular on merchandise planning and data science tools. There is an urgent requirement to be more socially and environmentally responsible through transparency in production processes (especially in low cost countries) and the reduction of greenhouse gas emissions (IOT traceability, low carbon transportation technologies etc). There is also a need to counter demand volatility and consumer versatility and to avoid soon-to-be forbidden product destruction, driving them to develop predictive technology and supply chain agility.

How we can help

We collaborate with our luxury clients worldwide, along the entire value chain, to guide them in their transformations. We help with: 

  • Process re-engineering from product conception to warehouse deliveries, with a mindset of optimising delays and increasing quality standards
  • Collection, assortment and inventory planning and steering on both a macroscopic (categories and regions) and microscopic scale (in-store SKU) based on the best merchandise planning tools and practices
  • Improving reliability of sales forecasts using data science
  • Implementation of an agile supply chain (reliability of the production plan, DDMRP)
  • Management of shortage and allocation (raw materials, new products, best-sellers)
  • Lean procedures in logistics and production sites
  • Redesigning logistics networks and optimisation of transportation flows, taking advantage of the benefits of IOT technologies, real time traceability and warehouse automation
  • Definition and implementation of omnichannel transformation (service pallets, inventory centralisation strategies, order management) and optimisation of in-store back-office operations
  • HR transformation and change management: mobilising stakeholders and support in the business and organisation transformation

Luxury goods case studies

Transformation program framework for After Sales operations: leader in watch & jewelry industry

Transformation program framework for After Sales operations: leader in watch & jewelry industry

The company wanted to launch a transformation program of After Sales Operations by implementing a worldwide ERP.

The aims were to enhance the customer’s After Sales experience and service level, to harmonise and improve efficiency of workshop operations and improve spare part availability and lead-times. The company also wanted to better monitor the worldwide After Sales performance.

Our role

  • Define the scope of the transformation program, its ambition and leading principles
  • Design of the Business target: processes, use cases, roles and responsibilities, functional requirements, KPI, gap analysis vs. current reality
  • Facilitate a seminar to initiate Change Management
  • Prepare the launch of the transformation program

Results

  • Approval by the CEO of the project’s guidelines
  • Clear vision of the objectives with prioritised business requirements
  • Local teams aligned with the objectives and were on-boarded at the start of the program
  • Assessment on some structuring functionalities
  • Program approach, worldwide deployment strategy, detailed roadmap and budget

Supply Chain Transformation: Watches & Fine Jewelry Brand of a Luxury Group

Supply Chain Transformation: Watches & Fine Jewelry Brand of a Luxury Group

We worked with a high-end watches and jewelry brand of a large luxury group, with in-house production sites and subcontractors and a mostly in-house retail. This brand was managed by supply chain organisation; the processes and tool (APS) had been in place for 10 years.

The trend of an increasingly volatile demand in this market prompted the company to set up a “Supply Chain 2.0” to align more with the economic performance and increased social responsibility.

Our role

  • Segmentation of finished goods items in a set of 10 supply chain models with different stakes (rotation, large or small volumes vs unique pieces, scarcity of materials, …)
  • Adaptation of SC processes to meet the challenges of growing segments in order to target greater representation of the offer in shops with a lower risk of obsolescence. Gap analysis with APS proposed by the group
  • Adaptation of the target organisation to improve the span of control while positioning the cost / stock / visibility trade-offs at the right level in the company

Results

  • ExCom aligned with target supply chain 2.0 and implementation roadmap
  • New organisation defined, SIOP process in place and equipped with a simulation and reporting tool
  • Updated assortment definition tool and process for a greater efficiency of the central-market collaborative process of defining stock width and depth per country boutiques clusters all over the word

Aftersales distribution study: leader in watchmaking industry

Aftersales distribution study: leader in watchmaking industry

The company is a major Swiss maker of luxury watches, selling worldwide.

The company wanted to design its worldwide future spare part service offer and identify how to transform its organisation to achieve success.

Our role

  • Assess the maturity of the spare part distribution, in terms of service and process, on a worldwide scope
  • Design distribution service service offers (leadtime, visibility..)
  • Design the target global distribution network allowing an optimal balance between service, costs and inventory
  • Design the target organisation, processes and of their impacts
  • Develop transformation roadmap and priorities

Results

  • Clearly targetted spare parts distribution service offer, on worldwide scope, consistent with repair service policies, aligned between business and supply-chain
  • Target network and inventory strategy to support the offer, among several scenarios modelled and evaluated
  • Target macro-process and organisation principles and main gaps from today
  • Prioritised 4 year transformation roadmap, with a focus on short term including quick wins