Adidas 2000 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2000 Adidas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

adidas-Salomon ANNUAL REPORT 2000
27
exchange of information and commitment
to high service levels
are essential for each supply chain partner.
To this end, we
are constantly re-evaluating our operational partnerships, includ
-
ing our raw material suppliers, manufactur
ers and logistics
providers. We also plan to enhance our partner
ships with key
retailers to ensure the supply chain is optimized from end-to-
end, from raw material supplier to retailer.
Cutting-edge supply chain management technology is another
area of major improvement. We are employing enhanced com-
munication capabilities including sophisticated IT systems and
web-based B2B solutions. A new information system to
support product creation is being developed. This system pro-
vides real-time, web-enabled communication of critical design,
development, production and sales data to all partners in the
supply chain. We are also making important improvements to
the information infrastructure, which supports information visi-
bility across the supply chain. This includes the implementation
of supply chain planning software.
We have translated these strategic goals into specific perfor-
mance targets:
Eliminate ten weeks from the product development and
four weeks from the procurement cycle in 2001 (20% lead
time reduction versus the 2000 cycle).
Reduce our time from product concept to retail delivery from
the current 18 months to less than nine months over the next
three years (50% lead time reduction versus the 2000 cycle).
These targets will be reached through the implementation of
lean manufacturing principles and the enhancement of special
labeling and retail floor-ready merchandise. Our efforts, how-
ever, stretch far beyond footwear. In apparel for example, we
have just completed the integration of operational activities of
all Group brands.
We have embarked on an ambitious supplier consolidation plan
reducing the manufacturing base by over 25% in 2001 and our
medium-term goal is to reduce our supplier base by 40%. The
consolidation of supply chain partners is also an important step
in order to increase our influence and bargaining power with
suppliers in the future.
Resources have recently been added to our global supply team
to expand the auto-replenishment programs already in place.
This will rapidly help to align the supply chain process with our
footwear activities.
As we move forward, we will initiate new projects in the areas
of common transportation partners, trade exchanges and
implementation of a more frequent ordering process. Over the
next three years, investments in product creation support
systems will allow adidas-Salomon to be closer to the market,
creating superior products in less than half the time that it
takes today.
Strategy adidas-Salomon ANNUAL REPORT 2000
27