Reebok 2013 Annual Report Download - page 98

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adidas Group
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2013 Annual Report
Group Management Report – Our Group
94
2013
Global Operations
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02.7
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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
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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. This continues to be underlined by
our strong “On-Time In-Full” (OTIF) KPI, which measures the adidas
Group’s delivery performance towards customers (Wholesale) and our
own-retail stores
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SEE INTERNAL GROUP MANAGEMENT SYSTEM, P. 118. In
2013, the adidas Group delivered 82% of its adidas and Reebok products
“on time” and “in full” (2012: 78%). For 2014, Global Operations strives to
maintain OTIF at a level of around 80%. It is also planned to roll out OTIF
to those markets that are currently not in scope.
01
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Five strategic priorities for Global Operations
Strategic priorities Specific goals Implemented through strategic initiatives
Ensuring cost competitiveness Reduce product and supply chain
costs
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Increase productivity for footwear and apparel manufacturing through
a higher level of automation in the production processes
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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
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Develop flexible planning and production models
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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
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Reduce standard lead times for footwear and apparel to 60 days
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Manufacture closer to key markets to deliver and replenish products
faster
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Grow in-season responsiveness and continuous replenishment models
Supporting the Group’s growth projects Support the Group’s Route 2015 and
Driving Route 2015 initiatives
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Build fast-fashion creation, sourcing and supply chain management
solutions
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Ensure further roll-out of processes and systems to optimise existing
operational infrastructure
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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
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Consolidate legacy systems and distribution structures
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Build state-of-the-art systems, processes and distribution facilities
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Pool supply chain activities for multiple markets
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Integrate local sourcing activities into the global structure