Reebok 2015 Annual Report Download - page 81

GROUP MANAGEMENT REPORT – OUR GROUP
Global Operations
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Transitioning to a set pre-season selection of standard product features and driving consistent executions
across categories for core products has been underway for several seasons in apparel. In 2015, Global
Operations fully embedded the modular approach as a ‘way of working’ that maintains a consistent brand
footprint, captures cost savings in factory efficiencies and expands product modules on faster production
lead times. The methodology and approach is planned to be expanded to footwear. It will be utilised for
in-season creation styles and will see the incorporation of digital tools that increase the connection to
direct factory production.
Furthermore, the Group is investing in the next generation of materials by focusing on knitted footwear and
direct-to-textile digital printing. In addition, we are developing footwear manufacturing process innovations.
Working cross-functionally, the Group intends to reduce dependency on manual labour and to deliver
compelling product concepts with integration into key footwear and apparel franchises.
MAJORITYOF PRODUCTION THROUGH INDEPENDENTSUPPLIERS
To minimise production costs, we outsource almost 100% of production to independent third-party suppliers,
primarily located in Asia. While we provide them with detailed specifications for production and delivery,
these suppliers possess excellent expertise in cost-efficient, high-volume production of footwear, apparel
and hardware. The latest list of our suppliers can be found on our website. The adidas Group also operates
a limited number of own production and assembly sites in the USA (4), Canada (3) and Germany (1). In
order to ensure the high quality that consumers expect from our products, we enforce strict control and
inspection procedures at our suppliers and in our own factories. In addition, we promote adherence to
social and environmental standards throughout our supply chain.
Global Operations manages product development, sourcing and distribution for adidas and Reebok as well
as for adidas Golf and Ashworth. Due to the specific sourcing requirements in their respective fields of
business, TaylorMade, Reebok-CCM Hockey, Adams Golf and the Sports Licensed Division are not serviced
through Global Operations, but instead utilise their own purchasing organisations. In order to quickly seize
short-term opportunities in their local market or react to trade regulations, Group subsidiaries may also
source from selected local suppliers outside the realm of Global Operations. Local purchases, however,
account only for a minor portion of the Group’s total sourcing volume.
www.adidas-group.com/
sustainability
see Sustainability, p. 94