a Giancarlo Rapisardi 5 éve
712
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IE Business School
Master in Management
Operations Management
Professor Felipe Quintana
Giancarlo Rapisardi
Section 2
LORO PIANA - OPERATIONS AND SUPPLY CHAIN MANAGEMENT
In this Mindmap I m going to talk about Loro piana, a high-hand retail luxury company. I am a fan of this company and also enjoy its products, and after discovering this course, and because we did not deal with this industry, I feel that I could discover the O&SCM behind this fascinating company. Welcome to the presentation about Loro Piana.
Founded in 1924, Loro Piana is one of the world's leading manufacturers of luxury fabrics. Its top-quality range of clothing and accessories shows an ongoing commitment to high-performance textile innovation and timeless Italian elegance.
Starting with a video that talks about the brand and the excellences products that it mades, we are going to focus more in the operations and supply chain of this company, discovering how it is still satisfying its customer and working in a proper way with its suppliers. Let's enjoy this journey.
Loro Piana always aims to satisfy its customers in the best possible way, starting from the elegance of the shops to the service that is offered to each of them.
in addition, this company has been very insightful in being able to meet Schmitt's 10 principles, because even if it has always been very focused on the development of its products, it has always managed to make the customer experience perfect and engaging by treating each customer in a very familiar way by doing so that the latter could always have an excellent memory of the product purchased and the desire to feel at home whenever he decided to go shopping in one of the shops.
another excellent point of those seen in class, which Loro Piana has managed to develop to improve the customer experience, focuses on the fact of the "10 lessons of delivering excellent service". Below are some examples related to some of these 10 lessons:
In addition to the classic tailor-made services, all Loro Piana garments can be customized, including shoes and leather accessories.
Create exclusive combinations starting from top quality materials, choosing from a lot of variations of rare and precious fabrics such as Merino wool, silk, cashmere and Baby Cashmere, Vicuña and many others.
For true admirers of natural beauty, Loro Piana offers the possibility to customize products made from the rarest and most valuable raw materials in the world.
The tailor made of loro piana is an excellence that satisfy customers from every point of view, using the best material and the experience in the sector, this brand can provides amazing suits for their customers.
All the companies, as Loro piana does have to build agile, adaptable and aligned supply chains, also known as The Triple-A supply Chain, to gain a sustainable competitive advantage over their rivals.
The triple A SC consists in :
In the photo below there are the original owner of the brand Pier luigi Loro Piana and the son of Bernard Arnault,owner of the company (LVMH) that bought 80% of Loro Piana in 2013, investing in this luxury brand to try to always carry it higher being experts in the sector and already owning numerous companies operating in this sector.
They are people with excellent experience who will always aim to bring this brand to the top while maintaining the standards of luxury, quality and excellence
Loro Piana being a company of excellence aims constantly to develop each of these three points (of the triple A SC), however the one in which the company focuses most is certainly that of Alignment, given and considering the quality it has in managing relations with customers and suppliers. In attached there is a wonderful picture that shows Pier Luigi Loro Piana (one of the owner too the company) while is talking and interacting with some Peruvian people from the Andes, where their best employees and suppliers work to develop excellent materials in order to satisfy customers at the end of the cycle. Maintaining and always controlling the work of employees and suppliers is a fundamental point that a company must always try to improve, showing attention and dedication towards those who work directly and indirectly for the company.
Loro Piana in that field has a managerial approach based on quality in order to achieve long-term success through customer satisfaction and benefits that benefit workers and society, always managing to develop products of extraordinary excellence that satisfy customers.
In this video is explained how this company works with a fine raw material as baby cashmere, Baby Cashmere comes from the white hircus goat, a species of goat that lives exclusively in Alashan, a desert region located between the Mongolian hinterland and northern China. This area produces the finest cashmere in the world and is the place from which it exports all its white cashmere and baby cashmere.
Being a brand of excellence, Loro Piana, even if it has its own farms and estates around the world, through a controlled transport it imports all raw materials into Italy, to ensure that the production develops with the quality and the efficiency of "Made in Italy"
This video shows the care and attention that the company pays to every single detail of the highest quality, to ensure that its products are the best ever. It is also explained how this company manages to develop raw materials in a totally excellent way and that it does not negatively influence the environment.
As already explained in other points, this company produces everything in Italy but most of the raw materials it has come from abroad from private estates where in some cases specimens of very rare animals that boast of having a very valuable coat are grown. To manage the whole transport issue Loro Piana has introduced a private system thanks to which the company manages to transport all raw materials as quickly and efficiently as possible, to ensure that everything arrives at the right time.
In the attached photo one of the private reserves is shown where Loro Piana in the Andes raises the Vicuna a very rare and valuable animal as already explained that it is endangered.
Loro Piana is certainly a company that must aim to grow and improve from some points of view, but overall it is an excellent brand that manages to obtain a good profit and always satisfy its customers in the luxury sector.
Thanks to the development of this Mindmap and the lessons of this subject, I was able to learn in an optimal way how the supply chains of many companies are structured and how all the sectors that revolve around it work, focusing more on others as I did to explain the supply chain of this company.
Having dealt with and researched which are the best departments of the Loro Piana supply chain was very interesting and dynamic for me, because I understood and discovered many interesting things inherent in a company to which I am very attached, being a long-time customer and being fond of certain fabrics such as those worked by this one.
I conclude this experience in a happy and satisfied way for what I have learned and for what I will need in the future thanks to the numerous knowledge acquired and the interest I have in the supply chains of many companies
For Loro Piana, uncompromising standards are a fundamental imperative. The Italian house has been producing exquisite cashmere products since 1960, always placing quality before quantity. Now, thanks to extensive research in the production of cashmere, Loro Piana has developed a method that optimizes quality while ensuring sustainable development.
Connecting us to "time to market", this brand always manages to convince its customers with the products because what they focus on is mainly the quality of what they want to sell and therefore not something new or innovative, but simply a traditional garment excellent quality extra luxury. So customers and new entrants know that they are going to buy a product based on aesthetics and quality.
Connecting us to "the flexible approach", we can see that adding flexibility to supply chain management, management is able to respond to deviations from the surroundings of the chain, as well as fluctuation from within the chain. For the short term, flexibility means responding to changes in demand or supply quickly and handle external disruptions effectively. In fact, an example is related to the question of sustainability, a very important topic nowadays which, as will be explained in the following branch, Loro Piana managed to deal with excellent speed and effectiveness.
The finest and rarest animal fiber in the world is obtained from a small camelid that lives wild in the Andes: the vicuña. Its history is deeply intertwined with that of Loro Piana and with its famous passion for the most exceptional raw materials.
The Jilin Agricultural University, the University of Camerino in Italy and the Italian National Agency for New Technologies, Energy and Sustainable Economic Development did an amazing research about sustainability, culminated in the "Loro Piana Method".
Beyond improvements in cashmere quality, this method promotes a sustainable development model. Rising demand from the cashmere industry has led to more intensive goat breeding, jeopardizing the fragile ecosystem in Inner Mongolia, where the majority of Chinese goat breeders live. This is why the Loro Piana method is based on selective breeding that contributes to a balance between animals, the environment and local populations.
Loro Piana is a company that manages everything with minimal attention to every detail, starting from the perfection of the shops to customer relationships, up to the management of its raw materials where everything is perfectly organized. Every material is always treated with maximum care and attention and in compliance with the rules, for example every Vicuna has its own code and it is treated with respect and attention, and everything is handled following the agreements that are stipulated with the Peruvian government, nothing is left to chance, everything that is produced has its logic.
As we saw in class, each company should be able to minimize its waste also by making an analysis related to the 8 most common types of waste, in this case, Loro Piana has already managed to reduce many as a company and could improve on others:
wastes to be eliminated are:
Loro Piana aims always to use less material and energy to minimize waste generation and preserve natural resources. As we can see in this picture, where is shows a plant while some fabrics are processing, everything is perfectly clean and tidy to ensure that everything is managed in the best possible way and that waste reduction can be more easily done, thus using the necessary raw materials.
Another example of lean managemetn are in the shop where everything is managed with the utmost attention and in detail. All the products on display are always perfectly ordered and are presented in the best possible way. Each shop is always very clean and well managed, where inside there are competent and well-educated people who are always able to satisfy the customer.
Loro Piana with its operational innovation always aims to ensure that its customers are satisfied with the service and quality product that is constantly offered to them.
A very important point that the company develops in this area is the fact that the shops are continuously monitored and helped by the offices to ensure that perfection is always achieved in all the services that are offered to customers both from the point of view of the product and from the point of view of relationships. Loro Piana is constantly working on the innovation of this model and tries to improve it year after year.
