In 2019, Kering began the construction of its new logistics hub in Trecate. Centralizing logistics and storage better enables the Houses to meet market demands for increased production as well as the higher expectations of today’s consumer, for whom speed and a seamless experience are essential. Here are five reasons why the new logistics hub in Trecate brings the Group into a new era.
A hub where operations and strategy meet
Today’s consumer expects more: he and she wants perfect delivery with a perfect experience across all channels. And they want it fast. By centralizing Kering’s logistical and operational business processes in one facility, the Trecate site enables an end-to-end supply chain vision: product availability is improved, stock levels are optimized, and faster distribution is assured, whether to stores or directly to customers. The former distribution organization in Switzerland, spread out over 20 separate locations in a rush to keep pace with demand, had become saturated. And because the new hub facilitates access to services across multiple channels from one location, there’s a significant accrual of business benefits, such as a reduction in lead time and a reduction in cost-per-piece. There is also a big boost to the Houses. By pooling resources for logistics and storage at the Trecate site, Kering provides brands with the freedom to unleash their energy and focus on the essentials: creativity, excellence in execution, customer relations and communication.
An ideal size, with room to grow
The unique 160,000 square meter omni-channel logistics and supply hub in Trecate is sized to meet Kering’s infrastructure needs as well as the current and projected increasing volume demands. The site, which will reach maximum capacity in 2022, can manage and streamline the entire logistics process, already has twice the present shipping and storage capacity as the former site in Switzerland, and is within easy reach of Italy’s major transport hubs such as Milan, Turin, and Malpensa International Airport. Gucci, Bottega Veneta and Saint Laurent have already begun using the hub for ready-to-wear, shoes, silks, leather goods, and some e-commerce activities.
One of the major qualities of this site is its great flexibility. In this regard, it has played a vital role during the height of the Covid pandemic, when it shipped all the personal protective equipment required for all Kering European employees, reaching 700 sites in 23 countries. The new logistics center shipped 9 million surgical masks, 190,000 bottles of sanitizing gel, 2.4 million sanitizing wipes and 3.7 million pairs of gloves in less than 12 months.
Generating an electricity surplus
The hub in Trecate is an exceptional environmental achievement. It will produce more energy when fully operational than the energy consumed. It boasts state-of-the-art technology and best-in-class sustainable features such as the large solar photovoltaic system (one of the largest in Europe) installed on the hub’s huge roof surface, an area the size of nearly 20 rugby fields. As the solar energy produced by this plant will far exceed the needs of the warehouses, the excess energy will be transferred to the Italian power grid and distributed to the Kering sites in the country. This excess energy produced at the hub is so significant it can provide most of the electricity consumed by Kering’s stores and offices in Italy. Additionally, on-site processes are designed to reduce energy and water use.
The buildings will receive LEED certification (Leadership in Energy and Environmental Design, the most widely-used certification for eco-friendly buildings in Europe) thanks to the design of the interior furnishings and structure, which have already earned LEED Platinum pre-certification the highest level achievable.
Creating employment in the local area
The plant directly and indirectly creates new jobs in Piedmont, and the Trecate site expects to employ at least 950 people by 2022 (employed by the logistic partner XPO) ranging from operations managers to engineers, safety and facility specialists, customer service associates and stock controllers. Increased employment also creates positive externalities, such as increased demands for related goods and services, shopping, education, and entertainment within the area.
A healthy place to work
The Trecate hub is designed to maximize efficiency while providing the highest standards of working conditions and well-being in the workplace. The entire process, from design to operations, is based on the WELL certification system, which operates under the auspices of the internationally-recognized Green Building Council. Thus the hub is a truly healthy and pleasant working environment with such features as enhanced ventilation, air quality control, optimal indoor temperature and humidity, ergonomic workstations, individually-adjustable lighting, reduced noise, low emissions, areas for relaxation and fitness, and a high-standard healthy canteen.