Adidas 2001 Annual Report Download - page 29

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24 Global Operations
The Global Operations mission is to advance
adidas-Salomon’s brand strategy by creating,
manufacturing and delivering products which
meet and exceed customer and consumer
expectations. In 2001, there is extensive evidence
that adidas-Salomon improved its “end to end”
supply chain solutions, optimizing partnerships
with raw material suppliers, manufacturers,
freight consolidators, ocean/air transporters and
retailers. Global Operations made significant
progress in its contribution to the Group’s overall
brand strategy. Continuous improvements were
made to the entire supply chain, making it
faster, more efficient and less cost-intensive.
These steps were accomplished within the
context of the Group’s commitment to further
improving its social and environmental
performance.
Ground-Breaking Changes Underway
In 2002, adidas-Salomon’s new brand approach will
extend to the Group’s Global Operations activities,
as this team aligns itself even more closely with the
Global Marketing structure. adidas-Salomon will
make revolutionary changes in how it organizes its
supply chain activities. The Group is moving away
from the traditional industry structure focused on
footwear, apparel and hardware, towards a structure
that is closely intertwined with the Group’s approach
to customers and consumers. The adidas Forever
Sport, Original and Equipment divisions as well as
Salomon and TaylorMade-adidas Golf each target con-
sumers with different tastes and preferences. These
same consumers have different needs in terms of
product sophistication and delivery time. At adidas
Forever Sport, for example, creating high-quality
exclusive products that can be replenished on
demand has become essential. At adidas Originals,
increasing competition from fashion houses means
that rapid product turnover and quick delivery times
are vital. At Salomon, extensive product tooling to
meet the needs of extreme sport athletes is one of
the most important success factors.
Making the Supply Chain a Competitive Advantage
To meet these varying needs, Global Operations is
restructuring its activities in 2002. With brand and
divisional teams that mirror the Global Marketing
structure, it will be possible to ensure that the
specialized marketing needs are incorporated early
and throughout the adidas-Salomon global supply
chain. To underpin this strongly interactive relation-
ship, Global Operations will be moving on-site,
working day-by-day with their marketing colleagues
in the same locations. This approach allows adidas-
Salomon to better define and understand unique
customer and consumer needs, by integrating the
product creation process into the adidas-Salomon
supply chain. Global Operations will also provide
better on-site brand and divisional support, enabling
adidas-Salomon to more quickly and effectively
translate its brand values into cutting-edge products.
Cutting Lead Times
Lead times in the footwear industry average 18
months, with 12 months elapsing from the initial
product concept to product offering. The other six
months are spent on product procurement, ordering,
producing and delivering products to retail. adidas-
Salomon is committed to dramatically shortening this
process. A shorter product development process will
allow adidas-Salomon to create products best tailored
Global Operations