Reebok 2012 Annual Report Download - page 122

5
adidas Group
/
2012 Annual Report
Group Management Report – Our Group
100
2012
Global Operations
/
02.5
/
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.
Clearly defined priorities for Global Operations
until 2015
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, the Group has proven that it is able to respond to the
fast-changing requirements of consumers and customers.
To support our Route 2015 strategic business plan, Global Operations
focuses on delivering against five function-specific strategic priorities
driven by several key initiatives
/
TABLE 01. 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 and simplified 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 2012, material and colour consolidation efforts
between Global Operations and Global Brands for footwear and apparel
progressed to plan.
01
/
Five strategic priorities for Global Operations
Strategic priorities Specific goals Implemented through strategic initiatives
Ensuring cost competitiveness Reduce product and supply chain
costs
/
Increase productivity for footwear and apparel manufacturing through
a higher level of automation in the production processes
/
Optimise product creation through efficient material and colour
selection
Providing industry-leading availability
Enhance existing logistics services
to create a flexible and cost-efficient
supply chain
/
Develop flexible planning and production models
/
Plan and manage inventory risk at decoupling points in the supply chain
Enabling later ordering Allow customers to order products
later, i.e. closer to the point of sale
/
Reduce standard lead times for footwear and apparel to 60 days
/
Manufacture closer to key markets to deliver and replenish products
faster
/
Grow in-season responsiveness and continuous replenishment models
to customers
Supporting the Group’s growth projects Support the Group’s Route 2015 and
Driving Route 2015 initiatives
/
Build fast-fashion creation, sourcing and supply chain management
solutions
/
Ensure further roll-out of processes and systems to optimise existing
operational infrastructure
/
Expand eCommerce supply chain capabilities and enable customisation
Modernising the Group’s infrastructure
Build the necessary 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
/
Pool supply chain activities for multiple markets
/
Integrate local sourcing activities into the global structure