Reebok 2014 Annual Report Download - page 105

Group Management Report – Financial Review
101
2014
Internal Group Management System
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03.1
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adidas Group
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2014 Annual Report
Backlogs and sell-through data: To manage demand planning and anticipate our future
performance, backlogs comprising orders received up to nine months in advance of the actual sale
are monitored closely. However, due to the growing share of own retail in our business mix as well
as fluctuating order patterns among our customers, order books are less indicative of anticipated
revenues for the adidas Group compared to the past. Therefore, qualitative feedback from our retail
partners on the sell-through success of our collections at the point of sale as well as data received
from our own-retail activities is becoming even more important.
On-Time In-Full (OTIF): OTIF measures the adidas Group’s delivery performance towards customers
and our own-retail stores. Managed by our Global Operations function, OTIF assesses to what
degree customers received what they ordered and if they received it on time. It helps our Group to
investigate improvement potential in the area of order book management and logistics processes. It
therefore also helps us to improve our delivery performance, which is a major aspect when it comes
to customer satisfaction. The OTIF assessment covers both the adidas and Reebok brands for our
two biggest channels, Wholesale and Retail, in most of our key markets.
Employee engagement: To measure the level of engagement and motivation of all our employees,
the adidas Group carries out employee engagement surveys. The surveys aim to provide key insight
into how well as an employer we are doing in engaging our employees. It thus enables us to develop
the right focus and future people strategies across our organisation. We aim to improve the overall
engagement score in our next employee engagement survey, which will be conducted in 2016.
Sustainability performance: We have a strong commitment to enhance the social and environmental
performance of our Group. By doing so, we firmly believe we will not only improve the Group’s overall
reputation, but also increase our economic value. We have therefore implemented a comprehensive
sustainability programme under which we regularly review our performance. We closely monitor
our sustainability targets and have set ourselves clear milestones. A major focus lies on monitoring
and rating our factories with regard to compliance with our Workplace Standards and rating the
effectiveness of compliance systems. A rating tool helps us evaluate six fundamental elements of
social compliance. We have a strong track record in sustainability reporting, with our Sustainability
Progress Report being an integral part of this. All our social and environmental publications, which
include more details and additional data, are provided on our corporate website.
see Glossary, p. 258
see Subsequent Events and Outlook, p. 146
see Global Operations, p. 66
see Employees, p. 82
see Sustainability, p. 89
see Sustainability, p. 89
www.adidas-group.com/en/sustainability/
reporting-policies-and-data/sustainability-reports