casestudyonsupplychainofadidas-100209220530-phpapp01.ppt

7/28/2019 casestudyonsupplychainofadidas-100209220530-phpapp01.ppt

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Presented by:

Shivankit Tewathia


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Company background

Adidas AG is a German-based sports apparel manufacturer

The "Three Stripes" were bought from the Finnish sport company

Karhu Sports in the 1950s.

company revenue for 2008 was listed at10.799 billion and the

2007 figure was listed at10.299 billion, or about US$15.6 billion. Started by Adolf Dassler post world war I later his brother Rudolf

Dassler joined

Post world war II brothers split to make two separate shoe

manufacturing firms i.e. Adidas & Puma.

In August 1998, following the merger of Adidas and Salomon, thethen named ADIDAS-SALOMON.


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Adidas Salomon- supply

chain The company's supply chain is long and complex, relying on about

570 factories around the world. In Asia alone, its suppliers operate

in 18 different countries.

It has a global supply chain network with the complete supply

chain being outsourced. Adidas IT infrastructure was based on the IBM AS/400 at the time.

Taylor Made in the US was operating on the HP 3000. Mean while

the global website was operating based on IBM Netfinity.


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Supply chain design

Manufacturing

unit

Countrywarehouse

Store1

Store2

Store3

Store4

Store5


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Supply chain complexity

With its wide assortment of product lines, is challenged by an

increasing individualization of demand.

Increasing purchasing power of the consumer & having individual

product choice made planning & forecasting for Adidas difficult.

The result was High overstocks, an increasing fashion risk, anenormous supply chain complexity, and the necessity to provide

often large discounts to get rid of unwanted products.

Uncontrollable work environment


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Targets for superior supply

chain

Product should be delivered on time and to go an extra mile for

retailers.

Supply chain need to become the strength of the future companies.

Supply chain integration & IT agility to support better planning &

forecasting. Upgrade the current software to better technology & integrating

disparate operating environments: Windows, OS/400 and HPUX.

Implementing made-to-order manufacturing, instead of made-to-

stock variant production.

Integrating consumers and retailers with Canadian distribution andAsian manufacturing operations. To top it all off, they were

integrating three merged companies and eight major brands.

Reducing all the costs prior to the IT integration.


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The solutions

IT integration being the ultimate solution to most of the challenges.

Adidas-Salomon Canada upgraded to a new IBM iSeries and

acquired Magic Softwares eDeveloper and later added the iBOLT

Integration Suite.

By using iBOLT, adidas will be able to create visual maps ofsupply chain and other business processes/flows as well as execute

those flows in a service-oriented architecture (SOA).

Three basic portals have been created: one for consumers, one for

business customers and another for employees.

Launching mi adidas focusing on mass customisation. Carefully selection & training of the suppliers according to the

change.

Conducting frequent audits of the suppliers.


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Benefits

The new site extends adidas-Salomon Canadas current supply

chain solution to allow customer access to sales, order status and

payment information via the Web. iBOLT was selected because of its rapid development and

integration capabilities and strong training and customer support,as well as its tight interface to the IBM iSeries platform.

made-to-order manufacturing instead of made-to-stock largely

minimises the risk of forecasting, eliminates distribution stocks,

and decreases the fashion risk.

Integrating customers early into product definition increases theflexibility of a company to react fast to changing market trends.

Customer integration can lead to open innovation


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casestudyonsupplychainofadidas-100209220530-phpapp01.ppt

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