Pacific Brands prioritises lean supply chain

29 August 2015

Australian clothing, footwear and home textiles business Pacific Brands is to revamp its supply chain operations as part of plans to deliver sustainable profit growth.

The company, whose brands include Bonds, Berlei and Voodoo, said one of its strategic priorities was to develop a sustainable, lean global supply chain.

This will involve reducing product and logistics costs, improving development and manufacturing lead times, increasing forecast accuracy and service levels, and enhancing sustainability and ethical trading outcomes.

In its results for the year to June 30, the company said full year earnings before interest, tax and significant items was down just under 5 per cent to AUS$64.2 million, although the second half of the year showed a marked turnaround with an increase of 26 per cent compared to the same period last year. Continuing business sales were up 5.4 per cent to AUS$789.7 million.

The company said it had also achieved significant reductions in its inventory levels despite upward pressure from currency depreciation and retail growth.

Other strategic priorities for the future include expanding its distribution and growing international business, as well as product innovation and expanding into other adjacent product categories.

Pacific Brands said it expected a continuation of “challenging and variable market conditions” over the next months.

Last year, the company announced the divestment of parts of its business, including the sale of its Brand Collective arm to Anchorage Capital Partners, and its workwear business to Wesfarmers Industrial & Safety.

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