French luxury group Kering has recently unveiled its new state-of-the-art logistics hub in Trecate, Italy. The company has taken this step to revamp its logistics operations in response to the increasing popularity of e-commerce and its sales growth. This ambitious project aims to consolidate all of Kering’s European logistics and operational flows at one location, thereby enhancing the company’s global logistics capabilities.
According to Kering CEO Jean-François Palus, the company’s previous storage centers were fragmented, and consolidating everything in a single site will lead to cost reductions and faster delivery times across all sales channels. The new hub signifies a shift towards direct interaction with the end customer, resulting in transformation in the company’s flows, transport methods, and IT systems.
Apart from the Trecate hub, Kering has also reorganized its global logistics by establishing new hubs in Wayne, New Jersey; Dubai; and an upcoming hub in Singapore. The project in Italy has been in progress since 2019 and now has a delivery and shipping capacity that is twice as large as the previous structure in Switzerland.
The strategic location of the Trecate logistics hub between Turin and Malpensa International Airport, close to Milan, gives it a significant advantage. Spreading over 162,000 square meters, equivalent to 20 rugby fields, the hub will eventually consist of two buildings. It will allow Kering to efficiently manage and streamline the entire logistics process while maintaining control over the supply chain from end to end.
Kering emphasizes the flexibility of the site, combining state-of-the-art technology and automation to meet the demands of regional warehouses, retail stores, wholesalers, and global e-commerce. The hub is expected to substantially increase the group’s shipping and storage capabilities, reduce lead times by 50%, and enhance collaboration with Kering’s brands.
Although Kering did not disclose the exact investment amount, CEO Jean-François Palus confirmed that it is the company’s largest investment in Italy. The focus was on assembling a highly efficient team with expertise and leveraging advanced technology, rather than just the monetary investment.
Operated by XPO Logistics, a long-term logistics partner of Kering, the Trecate logistics hub currently employs 250 people, with plans to increase the workforce to 900 by the end of 2022. Sustainability is a key priority for the hub, with cutting-edge technology incorporated into its design to reduce energy and water consumption. In fact, the extensive photovoltaic panels installed on the site will not only provide energy for the hub but also cater to most of Kering’s boutiques in Italy, making it one of Europe’s largest rooftop solar energy systems.
Kering’s transformation of its logistics operations reflects the changing landscape of the luxury sector, driven by sales growth and the surge in e-commerce. By centralizing its European logistics, reorganizing its global logistics, and investing in a state-of-the-art hub, Kering aims to meet the evolving needs of consumers, improve efficiency, and strengthen its position in the luxury market.
Useful links:
1. Kering Sustainability
2. XPO Logistics
