The high standards of the HUGO BOSS Group guarantee the well-known quality of its products throughout the value chain, from innovations in the manufacturing process to logistics and purchasing. The Columbus project helps to support these high standards.

Columbus project

In the international markets, HUGO BOSS faces challenges related to the integration of new product groups and changing expectations of the customers with regard to flexibility and innovation. These challenges have also changed the general requirements for the Group’s data systems. The Columbus project responds to these challenges by providing completely redesigned enterprise software. The resulting changes in data processing within the Group extend to every area of the Company, and require the coordination of work processes in order to create faster product cycles and greater flexibility.

HUGO BOSS has been working on the Columbus project since 2003 in its largest internal modernization process in the Company’s history. The company has used this project to respond at an early stage to the changing demands of the marketplace. The Columbus project involved the deployment of the standard software solution SAP AFS to control the entire value chain of the HUGO BOSS Group and the reorganization of the entire operational processes and structures. After being introduced without incident, first in the HUGO division, the system was gradually extended in 2006 to encompass the BOSS Orange and BOSS Black womenswear divisions. With the integration of BOSS Black menswear over the past fiscal year, the project was finally brought to a successful conclusion.

Innovation and Research & Development

At its location in Metzingen, HUGO BOSS uses its extensive know-how in industrial textile production to create leading-edge product and technology developments. Working in close collaboration with the creative departments, the Company uses new product ideas to drive the refinement of manufacturing technologies. HUGO BOSS also offers training courses on all aspects of industrial production in order to maintain and consistently expand this specialized knowledge within the Company.

Logistics

As the Group continues its international growth, there are also increasing requirements for a seamlessly functioning logistics system. HUGO BOSS relies upon a “best-in-class” approach to production and logistics, utilizing a continuous improvement process that also integrates modern methods from other industry sectors to create innovative solutions.

The Company uses networked logistics concepts to move high volumes worldwide with maximum flexibility and speed. From production to delivery at the points of sale, HUGO BOSS guarantees the smooth transportation of goods, while protecting product quality and ensuring reliable delivery for its retail partners. The ready availability of goods, which ensures on-time and complete delivery of goods, reached 95% in fiscal year 2007, after similar excellent values in the preceding years. By continuously optimizing logistics throughout the entire value chain, leveraging the implementation of new software systems and the expansion and modernization of its warehousing infrastructure, HUGO BOSS will continue to maintain its competitive cost structure and its outstanding quality level in the future.

Purchasing

Globalization has brought about drastic changes in the purchasing environment within the textile industry. HUGO BOSS enters into close partnerships with its global suppliers so that it can maintain consistently high quality over the long term. This also includes the obligation to maintain production conditions in all facilities that are unobjectionable and in accordance with legal requirements.

To assess the performance of its suppliers, HUGO BOSS introduced a groupwide online tool as a crucial element in supplier management. This system can be used to ensure the structured collection and analysis of supplier-related data for strategic purchasing, and to rapidly implement any measures needed to optimize supplier performance.

Global purchasing of non-textile products, capital goods, and services was also combined into an efficient, groupwide sourcing unit at the Metzingen location in fiscal 2007.