LensCrafters 2010 Annual Report Download - page 19

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OPERATIONS | 17 >
LOGISTICS
The Group’s distribution system is globally integrated and supplied by a centralized manufacturing programming 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 manufacturing 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 efficient and advanced logistics system in the industry, with 18 distribution centers
worldwide, of which 1 in Europe, 8 in the Americas, 7 in the Asia-Pacific region and 2 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-Pacific 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 enabled Luxottica to close the local warehouses throughout Europe that characterized the previous
distribution system, improving the speed and efficiency of the distribution, as well as eliminating unnecessary overhead.
The Sedico hub was opened in 2001 and represents the state of the art in the sector. In 2010, it managed over 13,500
orders per day, including eyeglasses and spare parts. Sedico ships over 170,000 units daily to customers in Europe, 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 Atlanta facility, opened in 1996, has consolidated several North America-based facilities into a single state of the art
distribution center located close to 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.
The Dongguan hub was opened in 2006 and it now ships an average of 100,000 units per day. The growth in the region
has resulted in this hub becoming strategic in the Group’s distribution network.
Following the SAP implementation in Sedico in 2009, the Group continued the roll-out of this IT platform in Dongguan
in 2010. System implementation will continue in 2011 in North America distribution centers with increasing advantages in
terms of inventory control, network optimization and order management processes.