SAP system helps Burberry save £50m

Fashion retailer Burberry reported savings of £50m last year as it began to reap the benefits of its SAP-based supply chain system.

Burberry...

Fashion retailer Burberry reported savings of £50m last year as it began to reap the benefits of its SAP-based supply chain system.

Burberry told an analysts conference that improved data from its supply chain IT had helped the firm reduce costs by driving down stock inventory levels by £100m over the course of the year.

"Burberry delivered a solid first half performance, reflecting the strength of the brand, business and team," said chief executive Angela Ahrendts.

Investments in the supply chain, IT and infrastructure, along with the closure of underperforming stores and staff cuts of 1,000, contributed to the £50m cost savings, the company revealed.

Benefits in the first half of the year amounted to £22m.

SAP had led to process improvements in planning and replenishment, the company said.

Separately, Burberry plans to install laptops linking its e-commerce site to 60 stores to improve customer service.

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