The final session of the Leadership Series offered a wealth of insight for the Supply Chain Management module of the Full-Time MBA program at SDA Bocconi. Students enjoyed a talk from Giorgio Striano, Chief Operating Officer of EssilorLuxottica, a leading company that has based its success on innovation and a flexible and resilient supply chain management model. It was a great opportunity to hear how their lessons on the subject can be put into practice and how EssilorLuxottica is able to manage all aspects of the supply chain.
Their innovative logistics model is based on the proximity of their optical laboratories to the production facilities. This has been the focus of EssilorLuxottica's efforts from the very beginning. The model has also evolved over time thanks to new technologies and the need to develop more data-driven strategies. The process devised by EssilorLuxottica made it possible to deliver complete eyewear that includes lenses to customers in the shortest time possible. To do this, laboratories have been relocated closer to the production of the frames, saving opticians the related costs of inventory and the risks associated with its management.
“The goal has always been to provide customers with an excellent customer experience," Striano said. In 2022, performance was driven by the ability to serve customers with a unique combination of the highest quality products, breakthrough innovations, and dedicated partnership programs.
The real breakthrough in terms of supply chain, which changed even more with the pandemic, came when it was decided that all divisions and segments should be vertically integrated within the company. Most of the activities were internalized, from sourcing raw materials to frame design, engineering, production, logistics, and sales in the company's own network of stores.
"We can immediately react to any problem or need," Striano said. "Thanks to vertical integration, data collection, the ability to communicate between the company's different business units, and new technologies. We can be responsive, flexible, and resilient so that we can provide people with an unparalleled experience.”
This also entails some complexities, but "thanks to specific monitoring programs, harmonization of processes, standardization of operations and alignment of methodologies, this is where the ability to react when dealt a problem is important. Because one small error can have a huge impact on production, but thanks to vertical integration we are able to limit most of the risks.”
In conclusion, Striano offered the participants some advice: "Your knowledge of supply chain characteristics and technical capabilities are the starting point, but what’s more important for your future are your instincts, attitude, and desire to grow and improve. Never stop learning!”
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