CASE STUDIES

OUR MAIN FIGURES

TOTAL 69 COUNTRIES

2017: 208 Mln€

OUR PRODUCTS

LOGISTICS:OUR ORIGINAL SETUP (until 2015)

• 20K sqm OWNED DISTRIBUTION CENTER IN BOLZANO

(ITALY) DISTRIBUTING ALL BRANDS ALL OVER THE

WORLD

• 5 MLN UNITS SHIPPED PER YEAR WITH 2 MAIN PEAKS

(70% OF ORDERS IN 2 MONTHS)

• 75% OF VOLUME THROUGH AUTOMATION

• 99,95% OF ORDERS ACCURACY (FY15)

• 100% INTERNAL TEAM (BLUE & WHITE COLLARS)

KEY CHALLENGE…

OUR SWOT & ACTIONS

KNOW-HOW DC SCALABILITY

PROCESSES CONTROL RESOURCES FLEXIBILITY

BASIC PERFORMANCES SPECIALIZED SERVICES

OUTSOURCING MAIN COST DRIVERS: INCREASING RISKS

NEW TECHNOLOGIES BUSINESS FRAGMENTATION VS EFFICIENCY

EDI DEVELOPMENT EXTREME CUSTOMIZATION

S W

TO

FURTHERMORE: WE WERE GROWING = VOLUME INCREASE ( +2MLN UNITS NEXT 3 YEARS)

OUR STRATEGY

OUTSOURCING ?? PRO & CONS FROM OTHER EXPERIENCES

OBERALP WAY: IN 2015 WE HAVE DECIDED TO IMPLEMENT A

MIXED SETUP (INHOUSE + OUTSOURCED) TO BETTER EVALUATE OUR ACTUAL MODEL THROUGH THE CONFRONTATION OF THE

MAIN KPIs.

OUR ACTUAL LOGISTIC SETUP: MIXED

• 1 DC USA/COLORADO SERVING

OUR OWN BRANDS ONLY IN

THE USA AND IN CANADA

• 0,5 MLNS UNITS SHIPPED PER

YEAR

• FULLY OUTSOURCED TO 3PL

• INTERFACED WITH 3PL’s WMS

• STRONG PARTNERSHIP DEAL

(KPIS + BONUS/MALUS)

• 1 DC IN NORTH-WEST ITALY

SERVING ONLY 1 BRAND

(UNDER ARMOUR) IN ITALY

• 1,5 MLN UNITS SHIPPED PER

YEAR

• FULLY OUTSOURCED TO 3PL

• INTERFACED WITH 3PL’s WMS

• STRONG PARTNERSHIP DEAL

(KPIS + BONUS/MALUS)

• 1 MAIN DC IN BOLZANO FOR

OWN AND DISTRIBUTED

BRANDS – ALL CUSTOMERS

WITH EXCEPTIONS (➔)

• 5 MLN UNITS SHIPPED PER

YEAR

• 75% OF VOLUME THROUGH

AUTOMATION

• OWN EMPLOYEES AND WMS

MAIN FINDINGS AFTER 2 YEARS

= OVERALL THE OUTSOURCED SETUP IS BETTER IN PERFORMANCES AND COSTS (OPEX).NEVERTHELESS PART OF THE INTERNAL COSTS ARE BASED ON INVESTMENTS WITH LONG TERM DEPRECIATION (CAPEX)

DETAILS UNIT INHOUSE OUTSOURCED difference % comments

PICKING ACCURACY (DEVIATION vs SHIPPED AT UNIT

LEVEL)% 99,99% 99,98% 0% difference not relevant and both in target

AVG HANDLING TIME SEASONAL ORDERS DAYS 0,80 0,76 5%there is a difference but not relevant for seasonal

orders (not urgent)

AVG HANDLING TIME REASSORTMENT ORDERS DAYS 2,60 2,30 13%significantrly better and relevant in the

outsourced setup

LOGISTIC COST FOR SHIPPED UNIT € >1 <1 39% outsourced setup better but costs vs investments

INCIDENCE OF LOGISTIC COSTS vs TURNOVER % <3 % >3%due diffences at units sales price (35,17€ vs

21,49)

BEST

PERFORMANCES

COSTS

CONCLUSION: OUR NEXT STEPS

1. KEEP OUR DC & DEVELOP THE IN-HOUSE SET-UP FOR OUR OWN BRANDS IN

THE CORE MARKET;

2. USE OUTSOURCED SOLUTIONS TO:

1. HANDLE OUR DISTRIBUTED BRANDS, WHERE WE NEED MORE FLEXIBILITY

AND AGILITY (CONTRACT 5-7 YEARS);

2. HANDLE OUR BRANDS IN OUR EMERGING MARKET (US & CANADA)

3. LEARN/DEVELOP OUR LOGISTIC SKILLS FROM THE OUTSOURCED SOLUTIONS;

4. CONTINUE TO COMPARE THE MAIN KPIs (BASICALLY COSTS AND

PERFORMANCES) TO GET THE RIGHT DIRECTION FOR OUR FUTURE STEPS

FINAL MESSAGE

WE ALWAYS TRY TO KEEP AN HOLISTIC VIEW !

THANKS! DANKE! GRAZIE!