Burberry’s Supply Chain involves a complex network of
retailers, distributors, transporters, storage facilities and suppliers that
participate in the sale, delivery and production of the brand's unique, luxury product.
Instead of shipping merchandise from the central warehouse, Burberry delivers product from factories directly to consumers, thanks to a
much more efficient supply chain. This eliminates stock-out cost and
improves service levels. Burberry's back-end capabilities are critically important in its success. The brand is adept at managing the various
options available in the omni-channel retail world.
Burberry employs the following programs:
Supply sourcing: locating a source of supplies not manufactured by the brand
Shipment tracking: This allows users to establish an account
and obtain real-time information about cargo shipments. They may also create
and submit bills of lading, place a cargo order, analyze charges, submit a
freight claim, and carry out many other functions. In addition, customers can
track shipments down to the individual product and perform other supply chain
management and decision support functions. The application uses encryption
technology to secure business transactions.
Shipping
notice: This automates the receiving process by electronically transmitting a
packing list ahead of the shipment. It also allows Burberry to record the
relevant details of each pallet, parcel, and item being shipped.
Freight
auditing: This will ensure that each freight bill is efficiently reviewed for
accuracy. The result is a greatly reduced risk of overpayment, and the
elimination of countless hours of paperwork, or the need for a third-party
auditing firm. By intercepting duplicate billings and incorrect charges, a
significant percent of shipping costs will be recovered. In addition, carrier
comparison and assignment allows for instant access to a database containing
the latest rates, discounts, and allowances for most major carriers, thus
eliminating the need for unwieldy charts and tables.
Shipping
Documentation and Labeling: This creates fewer need for manual intervention
because standard bills of lading, shipping labels, and carrier manifests will
be automatically produced; this includes the specialized export documentation
required for overseas shipments.
Online Shipping
Inquiry: This gives instant shipping information access to anyone in the
company, from any location.
Burberry strives to achieve the highest quality standards in
all components and stages of its supply chain process.The company has been working to address issues deeper in the supply chain including raw materials like leather, fur and cotton.
Supply Chain Achievements:
• Factory
visits: 634 factory visits; a 30% increase on last year
• Stakeholder
engagement: Actively participated in the BLC Leather Working Group and the Responsible Cotton Network
• Capacity
building: Developed Corporate Responsibility Handbook for vendors
• Worker
hotline: Expanded confidential worker hotline to Japan and Italy
• Raw
Materials Traceability: Agreed and signed contract to launch a 2010 traceability
project
