Reebok 2014 Annual Report Download - page 71

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adidas Group
/
2014 Annual Report
Group Management Report – Our Group
67
2014
Global Operations
/
02.5
/
Ensuring cost competitiveness
Global Operations focuses on further optimising product creation through an efficient and
simplified material and colour selection process. This, coupled with increased automation in
manufacturing, will further enhance productivity, shorten lead times and improve overall quality.
These improvements are expected to enhance profitability for the Group and ensure we provide our
consumers with the best value proposition possible.
In the area of manufacturing excellence for footwear, automation represents the key driver for
efficiencies. As part of this optimisation initiative, we support the implementation of state-of-the-art
machinery and solutions, such as computer stitching, high-frequency cutting and automated
production lines across factories, and we provide technical competency training to factory floor staff.
The resulting improvements in the factories are both visible and tangible. With less manual labour
required, manufacturers were able to reduce operating space and energy while increasing their
right-first-time rate and optimising their operator utilisation. For apparel, our goal is to use the
manufacturing excellence initiative to roll out modular production lines. In addition, we introduced
Global Sewing Data (GSD) – a globally recognised, industry-leading pre-determined motion time
system. It is an accurate and consistent way to measure the standard production time or Standard
Minute Value (SMV) of a product.
Global Operations aims to further strengthen the Group’s overall price competitiveness. Therefore,
in 2014, the function developed a new approach to material costing with increases in transparency
on fabric cost structure. This new approach delivers valuable insights which are used in seasonal
negotiations with our suppliers and allocation decisions. At the same time, it helps us further
optimise level-loading within our factories.
Strategic priority
/
Cost competitiveness
01
/
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