Jeans Maker Unfolds Plan to Boost Customer Service

Levi Strauss Associates Inc. plans to spend $850 million over the next few years to improve customer service in its U.S. operations.

The company had earlier projected that it would spend more than $400 million on the effort to fend off increasing competition.

The maker of Levi’s jeans will use $400 million of the total to support a new U.S. distribution network, expand ordering systems and make changes in organization and manufacturing, according to a recent filing with the Securities and Exchange Commission.

Levi said the reorganization will affect its entire U.S. supply chain, including product development, production, sales and distribution processes, as well as information systems.

“We’re investing heavily now in upgrading our worldwide operations to deliver superior customer service,” George James, senior vice president and chief financial officer, said recently.

The San Francisco-based company plans to add two customer service centers and remodel one, another spokesman said. Of the $400 million allocated to improving distribution, more than $290 million will go toward building and renovating customer service centers.

The plan includes spending about $450 million on new software applications, re-engineering design and planning, organization and process changes and training.