Coordinated production based in Hong Kong will yield higher gross margin
(Thomson Reuters ONE) -
RNB is continuing its Group-wide program of change and will be opening a
production office in Hong Kong on November 1, 2011. The office will coordinate
production for the Polarn O. Pyret, Brothers & Sisters and JC subsidiaries,
supported by satellite offices that will be opened in Shanghai and Dacca. The
coordinated work method will have a positive impact of two to three percentage
points on the gross margin.
The newly opened production office in Hong Kong will employ approximately 20
individuals to coordinate and manage all production issues for the three
concepts: Polarn O. Pyret, Brothers & Sisters and JC. Ida Gullbrandson, former
Manager for Kapp Ahl's purchasing office in Turkey, will become the Manager of
RNB's production office. The efficiency enhancement resulting from the
coordinated production will enable RNB to achieve the following positive
effects:
· increased significance among key suppliers and resulting economies of
scale entailing lower production costs.
· better production planning, which will lead to shorter lead times,
thus ensuring high capacity and quality at an earlier phase, while volumes are
fixed at a later phase.
· a higher degree of procurement flexibility, which will generate
opportunities to relocate production in Far Eastern countries that offer the
best cost efficiency.
"We are delighted with the recruitment of Ida Gullbrandson as Head of the
production office and leader of our team in the Far East. Ida's extensive
experience in purchasing, in China and Turkey, represents an important part of
the puzzle to ensure efficient production in RNB," says Anders Wiberg, Supply
Chain Director RNB.
The purchasing departments for Polarn O. Pyret, Brothers & Sisters and JC have
been reorganized and joint goods-supply processes have been established to
capitalize on the full potential of a central production office.
"The higher costs that will result from establishing the production office will
be fully offset by reduced agent commissions. An experienced team has been on
location in the Far East during the summer months and has already initiated the
development of new work processes. The total synergies achieved are expected to
have a positive impact of about two to three percentage points on the gross
margin. The favorable earnings effect will become visible initially already
during the 2011/2012 fiscal year, with the full impact achieved in 2012/2013,"
says Magnus Håkansson, CEO of RNB.
The production office in Hong Kong will be supported by satellite offices in
Shanghai and Dacca, which will primarily function as the base for local quality-
control efforts.
"As a step in increasing production in Asia, RNB has closed its production
office in Turkey. RNB will continue to work with local markets when rapid
repurchasing and other needs arise during the season but future efforts will
focus on a smaller number of suppliers and markets," says Anders Wiberg.
For more information, please contact:
Magnus Håkansson, CEO of RNB
Mobile telephone: +46 (0)768-872002
Coordinated production based in Hong Kong :
http://hugin.info/132993/R/1551904/478060.pdf
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Source: RNB Retail and Brands AB via Thomson Reuters ONE
[HUG#1551904]
Unternehmensinformation / Kurzprofil:
Datum: 04.10.2011 - 11:59 Uhr
Sprache: Deutsch
News-ID 72468
Anzahl Zeichen: 4238
contact information:
Town:
Stockholm
Kategorie:
Business News
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"Coordinated production based in Hong Kong will yield higher gross margin"
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