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B U S I N E S S A N D S U S T A I N A B L E D E V E L O P M E N T R E P O R T
2010
COMMANDING
THE SUPPLY CHAIN
fROM fACTORY
TO CONSUMER
EffICIENT ORGANIZATION...
The supply chain is essential to the Group’s competitive
performance because it ensures optimum management of
product logistics from the design stage until final delivery to a
satisfied client. This function is now organized around a dedicated
structure within each SBA. In addition, Group-wide teams
contribute to overall efficiency by providing support in specific
logistics areas such as special projects, export, or Chinese supply
management.
The effectiveness of the logistics chain depends above all on strict
control of internal stock levels. Hence the Group’s introduction
of a more precise sales forecasting system which will match
supplies as closely as possible to expected demand, and so ensure
accurate production and commercial planning. We have also
continued our efforts to clear old lines, surplus stocks and
slow-moving ranges, in order to improve the overall quality of
stocks in hand. Meanwhile, the Group has launched a farreaching
initiative to harmonize the planning process through
common practices and greater coordination between SBAs,
markets and factories. In 2010, there was a notable improvement
in the Group’s average stock-level ratio, compared with 2009.
The Group is also conducting several parallel projects to
consolidate its logistics platforms so as to make them even more
efficient and responsive, and to optimize packaging and
container loading by defining common standards.
All these measures and action plans are designed to control and
coordinate flows of goods and information more effectively,
so that the Group can give irreproachable service to its retailer
clients by offering them solutions which are adapted and even
tailor-made to their needs.