Burberry will use SAP to write all orders, procure goods and take inbound deliveries for next year’s spring and summer merchandise, in the latest stage of its ‘Project Atlas’ five year IT overhaul.
The SAP software has also been extended to finance and non-stock procurement in the US after successful UK deployment, and other undisclosed parts of the core system will be rolled out to the US and Asia during 2008.
The fashion retailer said: “Both the warehouse implementation, which has been used from September 2007 to ship spring-summer 2008 products, and the UK-Europe retail phase which started in October 2007, are progressing to plan.” The integration team was assessing “typical data and process issues” daily to keep processes running smoothly.
Burberry said it had made “further progress in improving ... business processes” and installing the SAP platform, as it reported profits up 19% year-on-year to £95m. It was on track this year to reach £20m in total benefits since the implementation began, it said.
Estimates for the cost for Project Atlas remained at £19m for this financial year, meaning an on-target total of £50m for the last three years.
“Certain elements” of the implementation are being staged and will take place in the third quarter as previously expected, the fashion retailer confirmed. This was to “mitigate the risks of implementation” and allow the outbound deliveries in the UK and Europe to run smoothly next spring and summer.
The company said the next targets for the programme were to help reduce markdowns, improve the visibility of stock levels and reduce manual processing.