LensCrafters 2009 Annual Report Download - page 19

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OPERATIONS | 17 <
The Group dedicates considerable efforts to monitoring the traffi cking of counterfeit goods through the in-
ternet, in order to remove the offers for counterfeit eyewear from certain popular on-line auction platforms
and shut down the websites that violate its intellectual property rights, through the sale of counterfeit
products or the unauthorized use of Luxottica trademarks.
LOGISTICS
The Group’s distribution system is globally integrated and supplied by a centralized manufacturing pro-
gramming platform. The network linking the logistics and sales centers to the production facilities in Italy
and China also provides daily monitoring of global sales performance and inventory levels so that manu-
facturing resources can be programmed and warehouse stocks re-allocated to meet local market demand.
This integrated system serves both the retail and wholesale businesses and is one of the most effi cient and
advanced logistics system in the industry, with 23 distribution centers worldwide, of which 10 are in the
Americas, 8 are in the Asia-Pacifi c region and 5 are in the rest of the world.
There are 3 main distribution centers (hubs) in strategic locations serving the major markets: Sedico in
Europe, Atlanta in the Americas and Dongguan in the Asia-Pacifi c region. They operate as centralized
facilities, offering customers a highly automated order management system that reduces delivery times
and keeps stock levels low.
The Sedico hub was opened in 2001 and updated with a new automated system in 2006. It currently man-
ages over 24,000 orders per day, including eyeglasses and spare parts. Sedico ships over 145,000 units daily
to customers in Europe, the Middle East and Africa and to the Group’s distribution centers in the rest of the
world, from which they are then shipped to local customers.
The Sedico hub enabled Luxottica to close the local warehouses throughout Europe that characterized the
previous distribution system, improving the speed and effi ciency of the distribution, as well as eliminating
unnecessary overhead.
During 2009, the information system SAP was implemented in the Sedico distribution center. The new
system has allowed Luxottica to effi ciently control and allocate customers’ orders. In 2010 the SAP system
will be implemented in the Chinese distribution center and, in 2011, in the Group's remaining warehouses
around the world.
First opened in 1996, the Atlanta facility consolidated over the years several retail North American based
facilities into single state-of-the-art distribution center located in one of the major airport hubs of the
United States. This facility has a highly advanced cross-belt sorting system that can move up to 140,000
frames per day. In late 2009, the facility, which was originally a retail-only distribution center, started serving
both Luxottica’s retail and wholesale businesses in the North American market. During 2010 Luxottica plans
to fully integrate the Oakley logistic's operation in the Atlanta facility.