IC Companys – Annual Report 2008/09 0 - IC Companys A/S

THE SHARED PLATFORM
The Group’s shared platform encompasses a number
of central functions such as sales infrastructure,
sourcing, logistics, HR, IT, finance and administration.
These shared functions create value by offering
service to all Group brands regardless of size and
level of development. This service rests not only on
strong competences and new ideas; it continuously
challenges and develops each brand. A service with
substantial competence and cost benefits are thus
provided to the individual brand.
The operational costs of the Group’s shared services
excluding the sales infra structure constitutes 11%
of revenue.
The target is to create an efficient, flexible and lean
platform permeated by a performance culture that
aims at delivering fantastic results.
Sales infrastructure
The Group operates sales companies in 11 countries
– Denmark, Sweden, Norway, Finland, England, Ireland,
Germany, Holland, Belgium, Poland and Canada.
In addition to own sales companies, IC Companys
has an export organisation, which operates
primarily through external agents and distributors.
The operational sales responsibility for InWear,
Jackpot, Matinique, Cottonfield, Part Two and
Soaked in Luxury lies with the sales companies.
Sales of Peak Performance and Tiger of Sweden are
carried out by the respective independent sales organisations
and to some extent by the Group’s sales
companies. Sales of By Malene Birger, Saint Tropez
and Designers Remix Collection are executed from
the head quarters of the individual brands and by
agents.
Sourcing and logistics
IC Companys holds more than 30 years of experience
in sourcing internationally and all end production
is outsourced to subsuppliers. Sourcing for all
brands is handled by own shared sourcing offices in
China, Hong Kong, Bangladesh, Vietnam, India and
Rumania and to a limited extent by the use of
agents.
The Group has a considerable strength in our sourcing
offices, which have developed a unique flexibility,
which allows them to handle the many brands,
which have very different needs in terms of volume
IC Companys – Annual Report 2008/09
Service
must create
value for
our brands
and offer them
economies of scale by
grouping more brands
in fewer factories. At the
same time, they ensure a
more cost-efficient quality assurance for
all Group brands.
The shared sourcing offices also make it possible for
all brands to handle geographic sourcing alternatives
safely and quickly and thus harness new sourcing
opportunities, thus reducing the operational risk
of IC Companys.
A geographic breakdown of sourcing in 2008/09 by
value is as follows: 67% in China, 15% in other Asian
countries and 18% in Europe.
Human resources
IC Companys has developed a professional HR strategy.
The Group HR Team is professional and experienced
and supports all business and platform units.
In addition to this, the HR department is currently
responsible for the roll out of the structure of the
new performance culture in the form of methods
and tools applied to the prioritisation and continuous
evaluation of the performance of the employees.
The Group has four academies aimed at our store
employees (Retail Academy), wholesale sales representatives
(Wholesale Academy), executives at various
levels (Leadership Academy), and one that consists
of courses of a more general nature for all employees
(Employee Academy).
IT, Finance & Administration
Solid IT support in all aspects of sourcing, distribution,
logistics, administration and sales renders it
possible for the individual brands to focus on the
creative and commercial development. Shared operation
of the IT platform ensures cost benefits for
the individual brands.
Financial planning, follow-up, reporting and administration
are organised in a shared service centre,
which handles all financial and administrative tasks
for all the sales companies of the Group. In addition
to the significant cost benefits, this allows the Group
to integrate new units or organisational changes
relatively easily and quickly.
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