Alice CAMPORESICamille DANNEAUXQian HUAISam MURRYClaire PAVIS D’ESCURACSuxin YANG

04/18/2023 LV Supply Chain Project – Group H 2

ZERO WASTE

VISION

SPACE

RECYCLE

MATERIAL

ENERGY

CREATIVE

RESOURCES

MONEY

PRODUCT

RE-USE

TIME

04/18/2023 LV Supply Chain Project – Group H 3

STRATEGIC PRIORITIES AND KPI

OTHER STRATEGIC DIMENSIONS

• Eco-sustainability (carbon footprint)

• Predictable risk management

• Flexibility

OUR TOP 3 STRATEGIC PRIORITIES

1. Operational ExcellencePrevent product waste (obsolete stocks)Minimize inventory levelsAchieve economies of scale

2. Product ExcellenceThe right product at the right time for the right customer

3. Service ExcellenceHow quickly and efficiently do we deliver to stores and to customers ?

OUR TOP THREE KPI

• Warehousing and transportation costs (1)

• Order fulfillment lead time (2, 3)

• Achieve obsolete inventory level < 5% (1, 2)

04/18/2023 LV Supply Chain Project – Group H

SUPPLY CHAIN PROCESS 1

• Only European Suppliers + crocodile leather from SG

• One Supplier per raw material type - Example: one for all leathered goods.

• Re-definition of replenishment cycle time according to new inventory management.

• Preventative measures performed: physical inspection of the goods before dispatching in order to avoid reverse shipment.

• When possible, ship directly to specific workshops.

• Cycle stock : order time replenishment based on production lead time and sales forecasting.

• Certification management - CITES for customs.

• Manufacture products but create first packaging step once manufactured.

• Organize Gembai walk and explore the possibility of Six-Sigma Methodology.

• Investigate through Gembai walk any kind of raw material waste.

• Replace light bulbs by LED.

• Labelling, reduce packaging, assembling etc.

• More seasonal products at FTWZ to avoid possibility of reverse shipment but to still be able to quickly send the goods.

• Transportation choices

- Bundle AFR shipments with other brands (next slide)

- Increase Rail / Road Freight solutions

- Increase OFR by better planning demand

• Store managers set up their own seasonal products sales target, consequently determining their seasonal stock.

• We hope it will increase their commitment to sell the seasonal products.

• Stores that will not manage to meet their own target for seasonal products sales will be charged the overstock.

• Reduce final packaging.

Workshop

Eole Warehouse ( for raw

materials)

Regional Warehouses

Retail Stores

Suppliers

4

Process alignment with integrated IS solutions.

04/18/2023 LV Supply Chain Project – Group H 5

SUPPLY CHAIN PROCESS 2

Brand selection criteria : • Offer high-end leather goods• Have some workshops in France, Italy &

Spain• Share similar supply chain (workshops

→ central warehouse → regional warehouse → stores)

Workshop

Central Warehouse

Regional Warehouse

Stores

ONLINE LOGISTIC PLATFORM

Brand Analysis in LVMH Fashion Group DivisionTargeted brands

:

• Berluti• Celine• Fendi• Givenchy• Loewe

• Sharing of logistic resources among all the decoupling points• Enable more frequent deliveries with small batches of goods• Easy to implement and to be integrated into current system• Facilitate communication between brands

Brands Logistics Bundling A Further Step of

BundlingTo envision bundling with LVMH Group Brands from other Product categories such as Perfumes and Cosmetics and Wine and Spirits in order to take advantage of the weight-volume cost calculation by carriers

04/18/2023 LV Supply Chain Project – Group H 7

SUPPLY CHAIN SETUP

California

New Jersey

Cergy (France)▪ Global

warehouse▪ Europe

warehouse

Dubai

Singapore

Hong Kong

Shanghai

Osaka

Tokyo

Spain▪ Leather goods

(3)▪ Leather good

accessories

Romania▪ Shoes and

leathergoods components (2)

California▪ Leather goods

(2)

France▪ Leather goods

(12)▪ High jewellery

Ponte de Lima▪ Shoes and

leathergoods components

LV Warehouses

LV Workshops

Key:

LV Tanneries

Belgium▪ Vegetal

tanned leathers

Singapore▪ Crocodile

leather

Italia▪ Shoes (4)▪ Accessorie

s

Switzerland▪ Luxury Watch

manufacture▪ Watch

assembly

Valence (France)▪ Calfslkin and

young bull hides

North Am.

▪124 stores

Latin America

▪19 stores

Europe

▪109 stores

Japan

▪57 storesChina

▪54 stores

Asia / Pacific

▪84 storesAfrica

▪4 stores

Middle East

▪19 storesMiami

Perm : 30%Ssnal : 70&

Chennai 60%

Seasonal