Adidas 2001 Annual Report Download - page 30

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25
Global Operations
to meet current market needs and expectations.
Quicker procurement will help Global Operations
improve customer service in terms of faster time to
market and competitiveness. Shortening supply chain
timelines also has the potential to positively impact
cash flow, inventories and overall sales figures. In
2001, the Group reduced four weeks from its pro-
curement cycle and exceeded its 10-week reduction
goals in certain product development areas. In 2002,
a primary focus will be on better aligning footwear
and apparel lead times with each other.
Creating Customized Solutions
While overall reduction of product concept to retail
delivery lead times is crucial, it is equally important
to develop tailored solutions for distinct products
and markets, so as to enhance short-term and longer-
term performance. For instance, in 2001 Global
Operations fine-tuned the Group’s supply chain
activities to better support key product introductions
with major athletic specialty customers in the US.
This allowed higher-than-projected retail sell-through
without the generation of excess inventory. These
efforts are critical to maximizing Group sales potential,
customer service and consumer demand needs. As a
result of the success and visibility of these improve-
ments, adidas-Salomon will be putting resources into
building this program even further in the future.
Optimizing the Production Process
adidas-Salomon is also committed to improving the
efficiency and service of the Group’s production pro-
cess. Lean manufacturing processes have been intro-
duced by the Global Operations team, which have
eliminated waste throughout the supply chain, and
are rapidly setting the standard for the industry. To
share these measures with manufacturing partners,
Global Operations have organized extensive training
sessions. The results have been so positive that by
the end of 2002 adidas-Salomon expects all footwear
production lines to adopt and implement a variety
of lean concepts into their daily manufacturing
processes.
Focusing Supplier Relationships
The Group continues to consolidate its supplier
base so as to increase its influence and power with
suppliers. This focus will in turn allow adidas-
Salomon to create customized solutions, further
improve social and environmental performance and
lower purchasing costs. adidas-Salomon has already
reduced the number of its footwear suppliers of both
raw materials and finished goods by 20% . And using
the lean manufacturing concepts mentioned above,
Global Operations is now focused on increasing the
efficiency and flexibility of apparel suppliers to help
further streamline those relationships.
Football Boot
Production
Footwear Lasts