Burberry says SAP to deliver savings as overall profits slow

Angela Ahrendts, chief executive at Burberry, has said the company's IT and supply chain initiatives based around SAP are set to deliver “near term” efficiencies.

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Angela Ahrendts, chief executive at luxury clothing manufacturer Burberry, has said the company's IT and supply chain initiatives based around SAP are set to deliver “near term” efficiencies.

The news comes as the firm warned profits for the full year will be lower than expected.

“With our supply chain and IT investments in their final phases, we are now in a position to drive significant efficiencies in the near term," Ahrendts said.

"These benefits, along with continued investment in the business, and proven strategies underpin our confidence in the future long-term growth of Burberry.”

Burberry said it has already identified “cost efficiencies of £15 to £20 million” that were part of its investments in supply chain, IT and infrastructure. It is also carrying out a further review into opportunities for “significant savings”, it said, as it reported interim results for the first half to September 30.

Burberry has been standardising around SAP enterprise resource planning systems, and announced in June that it had delivered £20 million in cost reductions due to improvements in its supply chain.