Reebok 2013 Annual Report Download - page 100

adidas Group
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2013 Annual Report
Group Management Report – Our Group
96
2013
Global Operations
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02.7
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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
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 2013 was to establish a fast in-season
creation process. This included expanding the company’s fashion
source base and enabling articles on creation-to-shelf timelines of
three months and less for all product divisions. In 2013, we produced
1.5 million units based on this new established process
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SEE GLOBAL
BRANDS STRATEGY, P. 77.
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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 BRANDS STRATEGY, P. 77.
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 2013, Global Operations completed two state-of-the-art, multi-
brand warehouses. The first is located near Osnabrueck, Germany,
and went live in June, followed by a new distribution centre in Chekhov,
Russia, which started to operate in July. During the same month, Global
Operations faced capacity and systems challenges in the existing
distribution centre in Klimovsk, Russia, which resulted in a backlog of
deliveries to stores and consumers for the Russian market. As a result,
the decision was made to ramp up capacities of the new distribution
centre in Chekhov ahead of plan. Deliveries were stabilised during the
course of the fourth quarter and are now fulfilling market demands.
The vast majority of our facilities operate a standardised warehouse
management system which continues to be rolled out to all new and
existing warehouses in the operations network.
Majority of production through independent suppliers
To minimise production costs, we outsource almost 100% of
production to independent third-party suppliers, primarily located
in Asia. While we provide them with detailed specifications for
production and delivery, these suppliers possess excellent expertise
in cost-efficient, high-volume production of footwear, apparel and
hardware. The latest list of our suppliers can be found on our website
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