Luxury Goods

Accelerating growth in an uncertain economic climate

In today’s uncertain economic climate, players in the luxury market must develop new opportunities for growth, while managing their procurement and production capacities. Argon Consulting’s expertise in the luxury sector encompasses the entire product value chain. Our experts help leading brands improve their performance on a daily basis.

Context

The economic crisis has highlighted the erratic nature of demand for luxury products. In a globalized market, with international players, the competitive climate has become more severe. The strategies deployed by players in the sector consist of improving control over distribution channels and reducing the products’ time-to-market, while guaranteeing a very high level of quality. Growth in emerging zones (Asia, Russia, and Latin America) remains a priority.

 

Challenges

In the current economic climate, the luxury sector’s supply chain has to overcome a variety of challenges in order to manage increasing complexity, by:

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  • Managing fast-changing customer demand, which tends to be different in emerging markets from mature markets
  • Better incorporating commercial priorities into the approach to planning, in order to boost the service level offered to customers
  • Optimizing complex logistics flows and multipolar patterns
  • Accelerating the product design and industrialization processes
  • Making production resources - which are subject to tight constraints in terms of quality, rare expertise, and location - more flexible and reactive
  • Managing subcontractors and better incorporating them into planning and operational monitoring processes

How can Argon Consulting help you?

Our expertise in this sector covers every requirement relating to operational optimization. Argon Consulting assists its clients in:

  • Optimizing sales forecasts on the different types of products offering (permanent products, new products, etc.)
  •  Planning and managing stocks, in terms of budget (merchandise planning) and selected items
  • Reviewing the processes of Sales and Operations Planning (S&OP) and of Master Production Schedules (MPS)
  • Planning and managing complex procurement
  • Establishing schedules in workshops
  • Deploying on-site lean initiatives
  • Reviewing logistics and transportation patterns, especially on an international scale
  • Overhauling their supply chain organization. The distribution of roles between product lines, procurement, production, supply chain management, logistics, and sales teams is optimized
  • Re-engineering the processes from product design to warehouse delivery, with the aim of optimizing cycles and quality control

Argon Consulting’s clients include:

Key players in ready-to-wear, leather goods, watches and jewelry, perfumes and beauty products, wines and spirits, and lifestyle products.

Case Studies

From the supply chain vision to the deployment of processes and the implementation of a supply chain planning information system