Burberry’s SAP implementation delivering early benefits
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Fashion house Burberry says that its SAP system is now delivering early benefits – including £20m worth in its supply chain – and that it will now be rolled out to the US and much of Asia.
The announcement comes in Burberry’s preliminary results announcement for the year ended 31 March 2008, and promises continuing deployment during this year, with final go-live scheduled for March 2009.
The company states: “As highlighted in the Interim Management Report in November 2007, Burberry faced an intense period of activity in the second half of the year... The group was in the most demanding phase of implementing its new IT infrastructure [SAP], while also rapidly evolving its global supply chain and logistics functions.
“During the second half, the new SAP platform was used to sell, procure and ship Spring/Summer 2008 products and the retail selling system in Europe – excluding Spain – was implemented. Although typical data and process issues arose, the project is now starting to deliver very early benefits, especially in the core central product and merchandising functions.”
Burberry goes on to say that its wider Atlas programme, which included improving business processes as well as the SAP implementation, has delivered the targeted cumulative £20m benefit to profits, mainly through supply chain efficiencies.
