Reebok 2012 Annual Report Download - page 124

adidas Group
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2012 Annual Report
Group Management Report – Our Group
102
2012
Global Operations
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02.5
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02
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Global Operations in go-to-market process
Global Operations
Marketing
Briefing
Design
Concept
Product
Development
Product creation
Sourcing
Manufacturing
Supply Chain
Management
Distribution
Sales Subsidiaries
Sales
Centre of Excellence
Processes and infrastructure of the future
Further order-to-delivery lead time reductions will be achieved through
increased proximity to sourcing countries, which will enable us to
manufacture closer to our key markets to deliver and replenish products
faster. In 2012, Global Operations introduced an in-season response
solution for own retail in Russia/CIS and Western Europe and will
continue to further develop this approach.
Supporting the Group’s growth initiatives
Global Operations supports the Group’s key growth and profit projects
outlined in the Route 2015 strategic business plan. The function impacts
the following growth projects:
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adidas NEO label: The focus in 2012 was to provide supply chain
services for all adidas NEO stores. This included expanding the
company’s fashion source base and enabling articles on creation
timelines of three months and less for all product divisions
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SEE GLOBAL
BRANDS STRATEGY, P. 78.
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eCommerce and customisation: Global Operations provides support
in further harmonising customisation processes and systems. It has
clearly defined supply chain capabilities that enable the demand growth
for the customisation business and have supported the evaluation of
existing customisation processes for adidas and Reebok footwear
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SEE
GLOBAL SALES STRATEGY, P. 72
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SEE GLOBAL BRANDS STRATEGY, P. 78.
As part of the Group’s Driving Route 2015 programme
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SEE GROUP
STRATEGY, P. 68, Global Operations expanded its responsibilities
throughout 2012, supporting the push for increased speed, consistency
and consumer focus. Driving Route 2015 deliverables include:
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Superior service for the adidas brand’s global foundation range
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SEE
GLOBAL BRANDS STRATEGY, P. 78.
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Organisational integration: Throughout 2012, Global Operations
further assumed end-to-end responsibility for the Group’s supply
chain as additional market operations and local sourcing functions
moved into Global Operations. The execution of the initiative saw the
review and harmonisation of local systems and processes as well as
the consolidation of local suppliers for ultimate integration into global
structures. Starting in 2013, all market operations will be moved into
Global Operations. Local sourcing integration efforts will continue
in 2013 under the Global Operations initiative of “Modernising Group
Infrastructure”. The organisational integration initiative also saw the
establishment of a dedicated adidas Fashion Operations department
to service the unique creation and sourcing needs of the Group’s
fast-fashion business, including Originals, the adidas NEO label and
Porsche Design.
Modernising the Group’s infrastructure
Global Operations continues to focus on building the required
infrastructure, processes and systems to support the Group’s growth
plans. This includes further process simplification, consolidation of
legacy systems and distribution structures, as well as the creation of
state-of-the-art systems required to support new business demands.
In 2012, Global Operations completed two state-of-the-art, multi-
brand warehouses. The first is located in Pyongtaek, South Korea, and
went live in May, followed by a new distribution centre in Mexico City,
Mexico, which went live in November. Meanwhile, construction work
for the Central Distribution Centre (CDC) near Osnabrueck, Germany,
is progressing to plan, with the facility set to open in 2013. By 2015, the
CDC will be capable of storing 35 million pieces during peak times and