Annual Report 2023

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HELLO Digital

HELLO
Digital

In line with our vision of becoming the leading premium tech-driven fashion platform worldwide, we are fully committed to embracing digital innovation and exploiting our many digital opportunities. To "Lead in Digital,” we are digitalizing our business activities across the entire value chain and harnessing the power of data.

Leveraging the full potential of digitalization is key for realizing our vision of becoming the leading premium tech-driven fashion platform worldwide. Our important digital TWIN initiative will be a game changer in achieving this goal.

Yves Müller, CFO/COO of HUGO BOSS

Fully in line with our strategic claim “Organize for Growth,” our Digital TWIN initiative is a core driver aimed at strongly enhancing real-time data utilization. By creating a digital copy of our value chain and making use of AI, we will further improve demand planning and better align our various planning activities.

In an ever-changing world where the challenges of global supply chains are intensifying, ensuring sufficient product availability at the point of sale remains of utmost importance to HUGO BOSS. Here, our TWIN emerges as the invaluable solution. It empowers us to seize opportunities presented by emerging technologies, economies of scale, and strategic planning. By harnessing these opportunities, we want to make a difference and turn our operations platform into a competitive adevantage. Ultimately, our TWIN is set to fuel sustainable growth, drive profitability, and achieve end-to-end supply chain traceability.

Bringing our 
digital twin to life

Our Digital TWIN will encompass key capabilities that are essential for driving long-term sustainable and profitable growth. These include:

Planning suite

Our integrated business, supply, and demand planning functions are consolidated into a comprehensive planning suite, optimizing our operations and seamlessly aligning them with market demands.

Supply chain visibility & collaboration

We prioritize supply chain visibility and collaboration to boost efficiency and responsiveness. By maintaining a clear view of our supply chain and fostering collaboration with our partners, we proactively address potential issues and enhance overall performance.

 Customer order management

Efficient customer order management is vital for providing a seamless customer experience. Through streamlined processes and advanced order management, we will ensure accurate and timely order fulfillment.

Traceability

Achieving end-to-end traceability is a paramount focus. This involves tracking and documenting our products’ journeys throughout the entire supply chain, ensuring legal compliance, while enhancing transparency and accountability towards consumers.

Product life cycle management

Effective product life cycle management is essential for maintaining market competitiveness. Through robust systems and innovative 3D processes for product development, launch, and replenishment, we will optimize our product portfolio and maximize our products’ life spans.

Put a focus on
sustainability in the supply chain

Achieving end-to-end traceability in our supply chain, from raw materials to fabrics and trimmings up to our final products, represents not only a core capability of our Digital TWIN initiative, but is also fully in line with our sustainability ambitions.

A woman cuts light-blue fabric with scissors (photo)

supply chain transparency

Traceability enhances supply chain transparency, empowering us to identify and proactively address potential environmental and social risks. This transparency facilitates responsible material sourcing, fosters fair labor practices, and steers clear of unethical suppliers.

Cotton – plant (photo)

origin of raw materials

Traceability verifies the origin of raw materials, ensuring that their ethical sourcing, while guarding against links to deforestation, illegal wildlife trade, or human rights violations.

A person with a bucket walking in a field (photo)

environmental and social regulations

Traceability also aids us in complying with environmental and social regulations. By tracking and documenting the journey of our materials and products, we can ensure compliance with restricted substances regulations or international labor standards.

tracing
the future

In 2023, our cross-functional project teams made significant strides in advancing our Digital TWIN’s key project initiatives. In particular, we made important progress in further increasing transparency in our global procurement processes, refining our target operating models, and identifying various new technology solutions. Building upon successful pilot implementations, 2024 will witness the global rollout of our TWIN’s key traceability features, alongside the implementation of a new product life cycle management suit as well as cutting-edge planning solutions. The full implementation and continuous development of our digital TWIN is a key factor in paving the way for the long-term sustainable and profitable growth for HUGO BOSS and its two unique brands, BOSS and HUGO.

HELLO
FUTURE.