Supply Chain Management

Gucci’s SCM Improvement

LeanSwift created a solution to improve Gucci’s supply chain between production in Italy, distribution centers in Schweiz and distribution in the Americas. This solution will improve quality and accuracy of customer deliveries as well as simplify supply chain management.

Manufacturing

100% of Gucci’s leather goods, shoes and ready to wear are still produced in its Florence workshops. The original workshop was located in Florence on Via delle Caldaie and the new headquarters are at Casellina, outside of Florence.

However eyewear and fragrances are manufactured and distributed under license by Safilo Group and Proctor and Gamble. Safilo is based in Padua, Italy and has been in the business for over 75 years manufacturing and distributing high-quality prescription frames, sunglasses and sports eyewear under licensing agreements and as well as under its own brands. Proctor and Gamble develops a line of Gucci fragrances. William Proctor and James Gamble founded the company in 1837. P&G’s products include pet foods, cleaning agents  and personal care. The company markets their products in more than 180 countries.

La Chaux-de-Fonds

Gucci timepieces are designed and developed under the direction of Gucci's creative Director, Frida Giannini. However the Technical Stages of the development process are entirely carried out in the Gucci Timepieces atelier La Chaux-de-Fonds in Switzerland. 


Gucci Distribution Center 

Location: Gucci distributes all its products from a 200,000 sq. ft. facility in Secaucus, N.J.

Equipment Used in Gucci DC: Three KardexRemstar Shuttle VLMs (Vertical Lift Modules), FastPic software and pick-to-light flow rack.

Summary: VLMs reduced labor costs and increase productivity by 40% while saving up to 80% of floor space. The three Shuttle VLMs provide approximately 1800 feet of accessible storage space in a 210 square foot footprint. Change and flexibility is inherently designed in the KardexRemstar Shuttle VLMs. The modular design allows the units to be moved or have the heights modified very quickly and cost effectively.

Efficient Zones

The Distribution Center (DC) picking area is broken into five zones connected with smart conveyor which routes the orders to be picked and pulled directly into shipping containers. The first three zones use pick-to-light flow rack. Three Shuttle VLMs make up the next zone and the last zone is the "double scan" area which uses shelving and "double" bar code scanning verification for additional security due to those items cost and value.

Orders

Waves of orders are queued at the customer service department. The waves are then sent down to the floor to begin picking. The waves are sorted into zones and inducted at the first available zone. The system is designed with a re-circulating conveyor, and during peak times pickers can induct at any one of the five zones. During non-peak times, the orders simply start at the first zone containing the required SKUs.

Pick, Pack and Ship

When the orders are completed, the Shuttle VLMs automatically deliver the items to an ergonomically located pick window. The three Shuttle VLMs are comprised of trays stored on both sides of a column with an inserter/extractor platform operating in the center.