Clothing retailer Abercrombie & Fitch is using new spend management software to reduce costs and improve its bottom line.
The company, which opened its first UK outlet and local online store earlier this year, will use the new software platform from Ariba as part of a strategic sourcing initiative designed to streamline its sourcing and procurement processes.
It will use Ariba Sourcing On-Demand to enhance the global management of buying across a range of non-merchandise goods and services spending, including store theming' items, construction and owner-supplied materials, IT, print, human resources (HR) and facilities.
The deal has been designed to offer the retailer flexible, hosted technology, as well as the provider's expertise and services, to effectively manage its activities in markets for direct materials and indirect goods and services.
The clothing firm was unavailable for comment on the deal. It did, however, hit the headlines last month when it reported a drop in third-quarter profits of 46 per cent compared to last year.
At the time, Abercrombie & Fitch chairman and chief executive Mike Jeffries blamed the results on the slowdown in consumer spending and difficult economic environment, but said the company remained committed to its international expansion programme.
He added: "We are mindful of the current environment and will continue to operate the business with a seasoned and disciplined approach, looking for efficiencies within our operations."
Kris Colby, Ariba director of spend management services and retail sector lead, commented: "As the economy continues to tighten, the costs of many goods and services can't be controlled, but there are plenty of categories in which savings can be had."
He added that the retailer would use the new spend management technology to identify categories where savings could be made to make improvements on its bottom line.
