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## Improving Our Productivity 

One of the keys to our ability to achieve accelerated growth lies in providing the infrastructure, from plant and equipment to controls and technology, needed to support our corporate plan. With the February move to our new northern New Jersey distribution center, we more than doubled our capability with no increase in operating costs. This new state-of-the-art facility with its improved traffic flow and handling systems is enabling us to pick, pack and ship orders with greater security, speed and efficiency. Implementation of our enterprise-wide computer system is also virtually complete; over 95% of our operations, including our international offices in Bienne which were relocated and upgraded in 1998, are now running off the same fully integrated software platform. Our worldwide supply chain is also making productivity gains by focusing as a team on improving our gross margins, product development-to-delivery times, customer fill rates and worldwide logistics processes. Manufacturing our new Tommy Hilfiger watches at a key supplier’s fully automated production plant gives us the flexibility to meet the demanding quick-time and low-cost requirements of competing successfully in the fashion segment of the industry. 

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