Reebok 2014 Annual Report Download - page 70

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adidas Group
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2014 Annual Report
Group Management Report – Our Group
66
2014
Global Operations
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02.5
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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
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 successfully
taken ownership for quality, cost and availability in the past years to be able to respond most
efficiently to the fast-changing requirements of consumers and customers.
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 in close collaboration with our IT function.
Against this background, the Group took the strategic decision in 2014 to consolidate the IT and
supply chain functions in one area of responsibility within Global Operations.
Global Operations focuses on delivering against five function-specific strategic priorities driven by
several key initiatives:
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Ensuring cost competitiveness and reducing product and supply chain costs.
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Providing industry-leading availability and enhancing existing logistics services to create a
flexible and cost-efficient supply chain.
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Enabling later ordering, i.e. closer to the point of sale.
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Supporting the Group’s growth projects.
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Modernising infrastructure by building the necessary operational backbone.
By delivering on these initiatives, Global Operations will ensure our Group’s 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) metric, a non-financial KPI
for our Group, measuring the adidas Group’s delivery performance towards our customers and our
own-retail stores. In 2014, the adidas Group delivered 81% of its adidas and Reebok products ‘on
time’ and ‘in full’ compared to 82% in the prior year. For 2015, Global Operations strives to maintain
OTIF at a very strong level of around 80%. OTIF was measured for around 70% of all adidas and
Reebok products in 2014. It is also planned to roll out OTIF to those markets that are currently not
in scope, thereby increasing the overall share of adidas and Reebok products measured against ‘on
time’ and ‘in full’.
see Internal Group Management System, p. 98