Vertical manufacturing system
ListenTechnical know-how and manufacturing skills: an intangible heritage in continuous evolution
Tradition and Innovation
The pursuit of production efficiency has always driven Luxottica, since the very beginning, towards the complete centralisation of the entire production process. The aim is to guarantee high quality standards and experiment new organisational systems that are able to improve production. In 1967, Leonardo Del Vecchio in fact made the strategic decision to extend activities to encompass the full production of eyewear, in all its parts (even if still carried out on behalf of third parties). His belief is twofold: on the one hand, he thinks that buying from third parties does not encourage the experimentation of new production methods and techniques, and on the other, he believes that only by controlling the whole of production will it be possible to keep the high quality in the development of the end product.
Vertical Integration
With the vertical integration of the production system, a virtuous circle is created: the complete control of production allows for research into new technologies, which in turn results in improved efficiency and an increase in revenues; the company grows and this stimulates investment and research.
This vertical integration strategy decided by Del Vecchio is a key element for Luxottica, as it has allowed the Agordo-based company to maintain a cost leadership position in the sector, associating it with a high quality product.
The vertical integration process has entailed major investments, on the one hand in order to extend production capacity and, on the other, to renew production technology, but always in the fundamental, total respect of high product quality.
Last update: 4 NOVEMBER 2011
