Posted by: mgeps | May 16, 2010

BENETTON LOGISTICS

In the other day post on Zara, meanwhile writing about dynamic assortment capability of this brand and its capacity of reduce the lead time and fast fashion I was thinking on another manufacturer company: Benetton.

Benetton for several years have been a reference in the assortment capability and have put a lot of effort on study clients garments colors choice during the pre-season period and adapted to these during the same season. Furthermore this brand have been revolutionary for using the same room for stocking selling merchandise and displying it.

I decided than to investigate a bit on the Logistics and organization of the company and found the following interesting information.

As stated in the benetton webpage (http://www.benettongroup.com/en/whoweare/distribution.htm): “Benetton has direct control of the logistics phase for both own manufactured and sourced products, and has invested in modelling, organization, and automation of logistic processes in order to completely integrate the entire production cycle, from client orders, to packing and delivery.

The state-of-the-art logistics operation at Castrette (Italy) has a fully automated innovative sorting system, whose propulsion is based on electromagnetic fields, capable of handling individual orders for over 6,300 Benetton shops worldwide.

Folded and hanging garments are automatically sorted, packed into boxes and sent through a one-kilometer tunnel to the Automated Distribution Center. This covers an area of 30,000 square meters, has a total capacity of 800,000 boxes and can handle 120,000 incoming/outgoing boxes a day with a workforce of only 28 (compared to the 400 required in a traditional operation).

The European Platform optimizes delivery and quality of service to the store network, thanks to its geographical position, close to the domestic market and European countries, and to the use of innovative technologies.

The functionality, effectiveness and efficiency of our logistic organization is completed by the Company’s hubs in Shenzehn and Mexico City; the multi-hub model is supported by a centralized IT system which is able to coordinate and optimize product deliveries customized according to required dates and destinations worldwide.

This system assures timeliness of information and better control of the business.”

Here above an interesting video on Benetton. Of Special interest for our subjetc is especially from minute 4:00 when are shown the Benetton distribution center which cover an area of 20,000 square meters, handle 40,000in & out boxes, and need only 24 workers. Is laso shown the innovative automated sorting system, which allows the company to hold the direct control of the logistics and send directly its products to the group’s 5000 retails outlets in 120 countries. 

CURIOSITY:

In view of the expected increase in the number of items being shipped, in 2007 Benetton Group started to invest around 50 million euro in the automated hub at Castrette. The strategic geographical position and use of innovative technologies confirmed the functionality, effectiveness, efficiency of Castrette in the centralized receipt of goods.

The investments allowed the distribution capacity of the Group to almost double, thanks to the development of new warehouse areas within the existing structure, and an innovative sorting system using electromagnetic propulsion.

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Responses

  1. You should link to your sources, if not you are just copyinng. It is a great post anyway, but link and quote… this is the basics for serious research.

    • Thanks for notice it. The change have already been done.


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