Reebok 2015 Annual Report Download - page 79

GROUP MANAGEMENT REPORT – OUR GROUP
Global Operations
75
2
BECOME THE FIRST FASTSPORTS COMPANY
‘Speed’ is a strategic priority for both the adidas Group and Global Operations alike. Our ambition is to be
the first fast sports company in the sporting goods industry. We will leverage market and sell-through data
in new ways, respond quickly to deliver concepts that are fresh and desirable and made available when and
where they are wanted across our wholesale, retail and eCommerce channels. Bringing products to market
faster allows our customers and direct-to-consumer channel to place orders closer to the actual time of
sale, facilitating buying decisions that are based on better market knowledge. Consequently, the adidas
Group will move away from predominantly developing product ranges in advance of seasonal merchandising
calendars and towards creation and production capabilities that respond to consumer demands with an
in-season development and rapid replenishment manufacturing. Fresher and more desirable products will
increase the Group’s full-price share of sales and reduce the risk of overbuying. By 2020, the Group target is
to achieve 50% of net sales through ‘Speed’, increasing the full-price share of sales by 20 percentage points.
Global Operations is scaling the fast replenishment capabilities of best-selling seasonal articles, creating
more articles within season based on sales data and ensuring constant availability of long life cycle
products. To adjust product supply flows to the changing demands of markets, the function is building
a more integrated and agile planning environment with flexibility for deploying products to markets. In
2015, Global Operations continued to expand its efforts to ‘enable later ordering’ and further reduced
production lead times. The function succeeded in providing 60-day production lead times on 76% of apparel
volumes in the spring/summer ‘16 season. The majority of footwear volumes are already on 60 days or
less production lead times.
The Group is leveraging its strengths in sourcing and partnering with industrial and academic experts
to develop fully automated manufacturing solutions that can react quickly to consumer trends. In this
context, Speedfactory is one way we are moving production closer to key markets while developing
high-quality performance products faster than ever before. Powered by intelligent robotic, process and
material technologies, Speedfactory allows us to personalise products, supporting the growing demands
for individualisation, in a socially and environmentally responsible way. As well as providing fast reaction
times to consumer needs, we envision a Speedfactory network which will enhance the consumer experience,
enabling them to co-create in an interactive production process.
see Group Strategy, p. 54
see Research and
Development, p. 80
01GLOBALOPERATIONS IN GO-TO-MARKET PROCESS
Global Operations
Marketing
Briefing
Design
Concept
Product
Development
Product Creation
Sourcing
Manufacturing
Supply Chain
Management &
Market IT
Distribution
Sales
Subsidiaries
Sales
Global IT