Luxury

In a market where growth is steady, luxury stakeholders must make sure their products are available in sales outlets (boutiques, branches in department stores, distributors). Concerned with promoting a flawless image of their expertise and product quality, these world-famous multinational or local companies are trying to optimise the way they organise this availability by setting up an appropriate Supply Chain.

CHALLENGES

The luxury Supply Chain depends heavily on its specific features and has all kinds of challenges to take up:

  • Increasing globalisation and complex logistics: with the arrival of new stakeholders and high demand of new consumers in emerging countries (Brazil, Russia, India, China), as well as in the Middle East and in the tourism sector, the sector's companies must anticipate and organise themselves differently (inflation of export and commercial services, making suppliers more reliable, necessity of an agile Supply Chain, optimisation of distribution for optimum customer service…).
     
  • Irreproachable and tailored customer service: attentive to their image and the perceived quality of their products and the need for broad ranges, luxury firms do what they can to guarantee product availability to their customers. They also find themselves in a complex situation: beyond mere product availability, they must also meet every specific expectation (product customisation, made-to-measure) whilst ensuring the very best quality (of service and delivery).
     
  • The need to better control verticality: luxury firms depend a great deal on their network of suppliers and subcontractors. With a perfect grasp of their know-how and some of them placing innovation at the heart of their expansion, they must also manage their supplies and manufacture in keeping with their suppliers' culture. 
     
  • Mounting pressure on cost control: the call for high profit margins on product sales and considerable investment in developing distribution networks on a globalised market are forcing luxury firms to keep a tighter rein over their costs - particularly logistical costs.

What DIAGMA can do for you

Founded in 1973, DIAGMA is now a leading consultancy firm in Supply Chain Management - and several-times the top-ranking firm in its sector.

DIAGMA has extensive experience and unique expertise in the luxury brand industry - both as regards production and distribution. Its customers are multinationals active on all segments of the luxury market: clothing, fashion accessories, shoewear, fragrances and cosmetics, fine leather goods, table decoration, furnishings, lighting, wine and spirits and so on.

DIAGMA offers a broad range of new services that best meets the myriad needs expressed by Management, Supply Chain, Logistics and Purchasing Departments of luxury firms. DIAGMA's experience and expertise in operations planning and forecasting ensures ongoing product availability for customers whilst keeping stocks and supplies costs under control. 

Due to the specific products and complex processes, DIAGMA takes a methodological approach to tackling Supply Chain problems in the luxury sector (quality, traceability of products, supplies planning, follow-up of distribution methods, customer service, etc.), which has been tailored to the development strategy of companies in the sector, with account taken of the requirement for specific results to the sector - fast.