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Abercrombie & Fitch expands cloud commitment

By Retail Technology | Friday September 27 2013

US apparel retailer renews contract orchestrates global trade on an automated cloud platform that connects buyers, sellers and service providers

Abercrombie & Fitch Co. has extended its contract with GT Nexus to expand its cloud supply chain strategy and improve visibility into the movement of orders, payments and goods. 

The lifestyle brand company has used the GT Nexus platform since 2010 to support international sourcing and supplier collaboration, across complex multichannel operations.

Supporting complex operations

Abercrombie & Fitch operates 1,053 apparel stores in 20 countries across four lifestyle brands -- Abercrombie & Fitch, abercrombie kids, Hollister Co., and Gilly Hicks. The retailer operates distinct e-commerce sites for each of its four brands. Abercrombie & Fitch's net sales for the fifty three weeks ended 2 February 2013 increased 8% year-on-year to $4.5 billion (£2.8bn). Total international sales, including direct-to-consumer sales, increased 36% to $1.4bn (£870 million). Total Company direct-to-consumer sales, including shipping and handling, increased 27% to $700.7m (£436.25m).

"GT Nexus simplifies the way we manage global commerce and allows us to work in a transparent, efficient environment," said Larry Grischow, group supply chain vice president for Abercrombie & Fitch. 

Transacting more efficiently

"We are able to transact more efficiently with suppliers around the world in ways that simply weren't possible previously. We have fewer people answering calls from factories and handling paper invoices, and more staff focused on strategic initiatives to support our growth."

Abercrombie & Fitch has plans to open a flagship retail location in Seoul, as well as approximately 20 international Hollister stores, during fiscal 2013.

Abercrombie & Fitch automated its procure-to-pay process in the cloud using GT Nexus to create a transparent workflow environment for purchase orders, invoices, amendments and settlements. The platform has allowed the retailer to grow its number of stores overseas without adding new staff or resources to its supplier-facing team.

The retailer also revealed in 2010 it was using new supply visibility systems integrated with its Oracle Retail Merchandising investment. And last year it signed up to the IBM Smarter Commerce web software platform.

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