LVMH highlights the importance of the Supply Chain

10-Mar-2015 - Last updated on 09-Mar-2015 at 14:37 GMT

Sephora supply chain

In a large company that is involved in many sectors like LVMH, from luxury skin care and make-up to high-end fashion such as Louis Vuitton leather, the Supply Chain is of increased importance and is the centre of all operations.

Regardless of the segment, the Supply Chain makes an essential contribution to value creation, according to LVMH’s Supply Chain Director, Alain Doudard.

“Everything we do centres on our customers and making sure that the products created by our Houses are available when and where they are needed is a fundamental priority. The LVMH Supply Chain plays a pivotal role in respecting this promise,” he says.

The Supply Chain spans the entire product cycle, from procurement to delivery and encompasses a diverse array of skills from planning to execution that must liaise with all the units involved in creating the products.

The core responsibility of the Supply Chain is to enable products to be made under optimal conditions, such as La Ruche, Guerlain’s new production unit in Chartres, which makes the House’s renowned skin care and make-up products for markets around the world.

Efficiency

Doudard points out that the Supply Chain has significant responsibilities as well in terms of guaranteeing that production processes deliver a positive social impact and a minimal carbon footprint.

“An efficient supply chain plays a critical role in delivering an excellent customer experience, since it is responsible for making sure the products of our houses are shipped and available,” he continues.

An example of this for LVMH were seen last year when Sephora inaugurated a new high-tech logistics platform in Maryland to handle deliveries to the entire East Coast of the US, in order to meet growing demand on its online store.

Committee

In 2013 LVMH created a Group Supply Chain committee to facilitate exchanges across the Supply Chain community, looking at issues together and sharing expertise.

For example, to optimize talent management the company coordinates with Group HR teams and brand HR to document and develop its competencies.

“What’s especially motivating in a Group like LVMH is that there is not one but multiple supply chains that have a vast variety of challenges to address,” adds Doudard.

“It’s obvious that we have more intelligence collectively than individually. We need to encourage this mindset to ensure that the LVMH Supply Chain continues to create value for each of our Houses.”