Reebok 2015 Annual Report Download - page 78

GROUP MANAGEMENT REPORT – OUR GROUP
Global Operations
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GLOBALOPERATIONS
Global Operations manages the development, production planning, sourcing and distribution of the
majority of our products. The function strives to increase efficiency throughout the Group’s supply
chain and ensures the highest standards in product quality, availability and delivery for our customers
as well as our own-retail and eCommerce activities at competitive costs. Additionally included under
the banner of Global Operations, Global IT manages all digital platforms for the adidas Group’s
business solutions. It enhances the core systems to be future-proof, builds an open digital platform
to connect to consumers and internal employees, and drives continuous change and innovation.
CLEARLY DEFINED PRIORITIES FOR GLOBALOPERATIONS
The strategy of Global Operations is an extension of the overall adidas Group strategy – thus the consumer
is at the centre of everything. The function strengthens brand desirability by providing the right product
to consumers – in the right quality, size, colour and style, in the right place, at the right time, across
the entire range of the Group’s channels and brands. Additionally, Global Operations builds capabilities
that further improve supply chain efficiencies, while mitigating costs, thereby ensuring a continuously
competitive supply chain.
Global Operations delivers upon its mission to create the best product, provide the best service and enable
the best experience for our consumers.
•Creating the best product by focusing on innovative materials and construction capabilities as well as
new ways of manufacturing.
•
Providing the best service by enabling product availability as the consumer chooses through the Group’s
omni-channel approach to supply chain agility.
•
Enabling the best experience by creating tools that engage consumers through interactive mobile
platforms, in-store technology and the ability to co-create.
Within the adidas Group’s new strategic business plan ‘Creating the New’, Global Operations focuses on
delivering against three strategic priorities driven by several initiatives:
•Become the first fast sports company.
•Create a seamless consumer experience.
•Transform the way we create and manufacture.
By delivering on these priorities, Global Operations leverages efficiencies across infrastructure and
processes to ensure that the Group’s digital ecosystem and supply chain remain a competitive advantage
in making us the partner of choice for our consumers and customers. 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 2015, the adidas Group delivered
81% of its adidas and Reebok products ‘on time’ and ‘in full’ (2014: 81%). For 2016, Global Operations strives
to maintain OTIF at a very strong level of around 80%. OTIF was measured for around 65% of net sales of
all adidas and Reebok products in 2015. It is also planned to further 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. 102