A major SAP implementation at Burberry has delivered on a promised £20 million in cost reductions so far, the group has said.

The benefits were principally attributable to supply chain efficiencies, the fashion retailer said, as it rolled out SAP across its offices, in European retail and its supply chain. Operating profits for the year to 31 March rose 28 per cent year-on-year to £201.7 million.

How does your IT infrastructure measure up?

Receive the 2008 UK company IT infrastructure benchmarking report, by completing the CIO survey.

This survey will uncover the latest industry trends, highlight rising CIO concerns and popular IT investments in various vertical sectors. Participation is free and qualifies you to receive a complimentary copy of the 2008 CIO Benchmarking Report so you can evaluate how your organisation compares.

The group said that during the implementation it faced “typical data and process issues”, which it has not disclosed. Last October, it announced it was slowing down the rollout to avoid problems.

It said the project “is now starting to deliver very early benefits, especially in the core central product and merchandising functions”.

Burberry spent £19.6 million on the SAP rollout, called Project Atlas, in the year. It plans to roll out the systems to the US and Asia by March 2009, costing “about £4 million”. It has spent £52 million on the project in the last three years.

Related stories:

SAP infrastructure roll-out to cut risk">Burberry rethinks SAP infrastructure roll-out to cut risk