Louis Vuitton Case
Case Study- Louis Vuitton
1
Table of Contents
1. Introduction 2. The company Louis Vuitton 3. Supply Chain Strategy 4. Constraints of the Luxury Industry
4.1. Supply Chain Strategy of Louis Vuitton
5. Process map of buying process 5.Order Qualifiers and Order Winners
5.1. 5.2. Performance Dimensions Trade-off among Performance Dimensions
6. Internal Operation Practices
6.1. Manufacturing Process 6.2. Customization Point 6.3. 6.4. 6.5. 6.6. Service Package and Service Level Capacity Strategy Forecasting Demand Inventory Strategy
7. Purchasing and Logistics Strategy Practices
7.1. 7.2. 7.3. 7.4. Sourcing Decision Sourcing Strategy Organizing Logistics Interaction with the Final Customer
8. Conclusion 9. References
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1. Introduction
Louis Vuitton is a part of the Louis Vuitton Moet Hennessy Group. Being the core business, Louis Vuitton is the most famous brand not only in the group, but also in the fashion industry. It is well-known for its quality and design. Most of the Louis Vuitton consumers are wealthy people, who expect premium products regardless to the price. Considering this fact, Louis Vuitton may implement a strategy, which ensures availability of the products at any time and provide the clients with the best possible customer service. In the past, Louis Vuitton faced the out-of-stock problem and it has not been solved, yet. As a consequence, the company loses not only sales but also reduces its reputation. Historically, many companies in the fashion industry did not regard to the out-of-stock as a serious problem. For many managers it was considered as a sign that the collections were well selling and revenues and profitability were high. However, the situation changed and the managers realized that consumers’ satisfaction is one of the most important aspects for a company in order to continue being successful, gain high profits and reputation. The source of the out-ofstock problem in Louis Vuitton causes some
1
Table of Contents
1. Introduction 2. The company Louis Vuitton 3. Supply Chain Strategy 4. Constraints of the Luxury Industry
4.1. Supply Chain Strategy of Louis Vuitton
5. Process map of buying process 5.Order Qualifiers and Order Winners
5.1. 5.2. Performance Dimensions Trade-off among Performance Dimensions
6. Internal Operation Practices
6.1. Manufacturing Process 6.2. Customization Point 6.3. 6.4. 6.5. 6.6. Service Package and Service Level Capacity Strategy Forecasting Demand Inventory Strategy
7. Purchasing and Logistics Strategy Practices
7.1. 7.2. 7.3. 7.4. Sourcing Decision Sourcing Strategy Organizing Logistics Interaction with the Final Customer
8. Conclusion 9. References
2
1. Introduction
Louis Vuitton is a part of the Louis Vuitton Moet Hennessy Group. Being the core business, Louis Vuitton is the most famous brand not only in the group, but also in the fashion industry. It is well-known for its quality and design. Most of the Louis Vuitton consumers are wealthy people, who expect premium products regardless to the price. Considering this fact, Louis Vuitton may implement a strategy, which ensures availability of the products at any time and provide the clients with the best possible customer service. In the past, Louis Vuitton faced the out-of-stock problem and it has not been solved, yet. As a consequence, the company loses not only sales but also reduces its reputation. Historically, many companies in the fashion industry did not regard to the out-of-stock as a serious problem. For many managers it was considered as a sign that the collections were well selling and revenues and profitability were high. However, the situation changed and the managers realized that consumers’ satisfaction is one of the most important aspects for a company in order to continue being successful, gain high profits and reputation. The source of the out-ofstock problem in Louis Vuitton causes some