Reebok 2011 Annual Report Download - page 94

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
90
2011
02.5 Global Operations
Global Operations
Global Operations manages the development, production planning, sourcing and distribution of the
majority of our products. The function continually strives to increase efficiency throughout the Group’s
supply chain and ensure the highest standards in product quality and delivery performance for our
customers and our own-retail and eCommerce activities at competitive costs.
02.5
The vision of Global Operations is to be closest to every consumer. The
function strives to provide the right product to consumers – in the right
size, colour and style, in the right place, at the right time, across the
entire range of the Group’s channels and brands.
Global Operations has a strong track record for establishing state-of-
the-art infrastructure, processes and systems. The function has been
successfully consolidating and improving legacy structures, reducing
complexity and cost for the Group. By taking strong ownership for
quality, cost and availability, we have proven that we are able to
respond to the fast-changing requirements of both our consumers
and customers.
To support our Route 2015 strategic business plan, Global Operations
focuses on five strategic priorities driven by several key initiatives
TABLE 01 . The implementation of these initiatives is well underway,
with three already completed in 2011 (adidas NEO label, Fast and Lean
Creation and FlexPLM). By continuing to deliver on these initiatives,
Global Operations will not only enable the Group to achieve its goals,
it will also ensure our supply chain remains a competitive advantage
in making us the partner of choice for our consumers and customers
alike.
Ensuring cost competitiveness
Global Operations focuses on further optimising product creation
through an efficient material and colour selection process. This,
coupled with increased automation in manufacturing, will enhance
productivity, shorten lead times and improve overall quality. These
improvements are expected to enhance profitability for the Group
and ensure we provide our consumers with the best value proposition
possible.
In 2011, a joint effort between Global Operations and Global Brands
yielded initial results on consolidating material and colour numbers,
which will already start to deliver benefits in spring/summer 2013.
In the area of automation and manufacturing efficiency, pilot lines
were established in several factories for most categories. Parts
produced per hour for these lines have improved in some instances
01 Five strategic priorities for Global Operations
Strategic priorities Specific goals Implemented through strategic initiatives
Ensuring cost competitiveness Reduce product and supply chain
costs
– Optimise product creation through efficient material and colour
selection
– Increase the level of automation in the manufacturing processes
– Pool supply chain activities at a central level
Providing industry-leading availability
Enhance existing logistics services
to create a flexible and cost-efficient
supply chain
– Offer tailored replenishment models to customers, using improved
planning processes and systems
– Develop flexible planning and production models
– Plan and build inventory buffers at different locations in the supply chain
Enabling later ordering Allow customers to order products
later, i.e. closer to the time of sale
– Reduce production lead times for footwear and apparel to 60 days
– Establish a regional source base
Supporting the Group’s growth projects Support the company’s Route 2015
priorities
– Build fast-fashion creation, sourcing and supply chain management
capabilities
– Further roll-out of processes and systems
– Offer short lead time production models
Modernising the Group’s infrastructure
Build the required operational
backbone to support the Group’s
growth plans
– Consolidate legacy systems and distribution structures
– Build state-of-the-art systems, processes and distribution facilities