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Published
Feb 9, 2015
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Ralph Lauren aiming for a globalised structure

Published
Feb 9, 2015

Big changes on the horizon at Ralph Lauren. The American group recently finalised the installation of the SAP company management software package to supervise its production units.

In the press release presenting the group's latest quarterly results, the group's management said that a new organisation will be put in place in the coming months. Although the financial, technical, supply chain and merchandising clusters already have globalised structures, Ralph Lauren is heading further still in this direction.

Ralph Lauren printemps 2015


"Over the next few months we are going to start taking action to transition from decentralised channels and regional structures to a global organisation that is based on the brands and totally integrated," explained Chris Peterson, the group's financial director.

The group's leaders have explained that they will create a global scale group for each division (Denim & Supply, Polo, Collection…) that will be able to pilot the design, marketing, retail merchandising, and financial strategies. The goal of the regional teams will be to communicate the information and answer the daily and local problems.

Ralph Lauren is counting on the strengthening of each brand's identity and an optimisation of their growth potential with this reorganisation.

"Now that we have completed the integration of SAP in our production units around the globe, we have visibility on the development of our SKUs and their performances for the first time," said the financial director. "We have created 130,000 SKUs across company. The new structure will allow us to significantly reduce our reference units, which will lead to lower stock levels, better gross margins and less operating costs. Our goal, once the new structure has been implemented, is to achieve more than 100,000 US dollars in savings in this sector."

The group is expected to provide more details on the implementation of this plan when presenting its 2014/15 annual results in May.

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