Adidas Supply Chain Strategy

In August 2005, a news shocked the sporting goods industry: the largest sporting goods manufacturer in Europe, Adidas Solomon, Germany, announced on the 3 day that it plans to spend 3 billion 100 million euros on the acquisition of Reebok Co in the United States, aiming to further challenge the United States Nike company, the world's sporting goods manufacturer.

Reebok is the second largest sporting goods manufacturer after Nike in the world, ranking third in the world. According to the agreement, Reebok will continue to retain its brand, and its headquarters is still in Canton, Massachusetts.

After the acquisition, Adidas increased its strength to compete with Nike for the crucial US market.

Earlier, Adidas beat Lining to become the only sporting goods partner of the Beijing 2008 Olympic Games. A new sporting goods kingdom with the NIKE scale is emerging.

Adidas legend is dedicated to creating Adidas, Solomon, a world-famous sports brand. It is an internationally renowned company that manages sportswear, footwear and equipment, and is also the largest sporting goods manufacturer in Europe.

At present, Adidas Salomon group has made a brand new construction of its three brand series: the Adidas brand is divided into three major series, including the Adidas performance series (formerly the "endless movement" series), the traditional sports series (the former Classic Series) and the sports fashion series, giving each series its own logo to locate different groups of people.

This division has fundamentally changed the traditional way of dividing clothing and footwear by sports goods companies.

At present, the main products include: ADIDAS - football supplies, four seasons of all kinds of clothing (running clothes, football clothes, basketball clothes, etc.); Bonfire - skiing equipment and clothing; Erima - football team equipment and supplies; Mavic - bicycle sports equipment: gear, pmission and so on.

From the first pair of sneakers made in 1920, to the 1927 production plant and then to the trademark of shamrock in 1972, Adidas has always been at the forefront of sports goods.

But it takes 1995-1996 years to establish the leading edge.

With the launch of the new logo and the overcoming of the company's listing in Paris and flanges, Adidas has basically established the prototype of the sporting goods kingdom.

Companies have businesses in the global market.

Market segmentation: Asia, Europe and America.

The company's main subsidiaries all over the world, through various means directly or indirectly holding, mainly divided into Germany, the Americas, Europe, Latin America, Asia Pacific region.

Through its Affiliated Companies, wholesalers, licensed operators and agents all over the world, ADIDAS has sold products in almost every country in the world.

Its branches are distributed in more than 50 countries around the world, and its products are sold to more than 160 countries and regions. It is the world's top sporting goods company.

ADIDAS has a large number of products, the most important one is soccer shoes. It produces more than 500 varieties and 28 pairs of pairs each year, and occupies the first place in the sporting goods sales of more than 150 countries.

ADIDAS has set up a framework for outstanding achievements in the market, which includes clearly defining ownership and management rights, taking products as business intersections, adopting centralized management measures, setting up design and development centers in Europe and North America, establishing regional sales Affiliated Companies structure, and establishing joint ventures with original distributors to directly improve market position.

ADIDAS sales in Europe increased by 13% in 1999, mainly due to TAYLOR MADE pforming its sales way from independent distributors to TAYLOR MADE controlled institutions.

On the whole, after adjusting the market strategy in 1999, Adidas's global revenue increased substantially, up nearly 500 million from the 9 billion 910 million Mark in 1998, and even more astonishing is that it achieved 1 billion 280 million sales in the Asian region in 1999 in 1999, up 80% from 1997.

From another set of data, we can see the adjustment of ADI logistics strategy.

In 1996, ADIDAS held 43% of the US ADIDAS distribution center, Lansing, capital of Michigan, with a share of 46% in 97 years and 63% in 98 years and 61% in the 99 year.

Since 2000, ADIDAS has implemented the "three pillar strategy" in electronic pactions in order to meet and adapt to the Internet era.

First of all, it is a global market alliance with the world's leading Internet sports media company Sportsline.com and its subsidiary Sports.com in Europe, that is to say, it has extensive cooperation with the two companies in the field of electronic pactions, and promotes ADIDAS brand and its products through their websites cbs.sportsline.com and sports.com.

This global cooperation has penetrated into Asia from the US and Europe.

This cooperation will enable ADIDAS to benefit from the experience of its two partners in the field of electronic pactions, making it possible for three companies to use each other's brand, providing great potential for ADIDAS products to sell online.

Second, the joint operation of electronic pactions with important retailers is a major supplement to the above electronic trading strategy.

Finally, sell your products on your website.

In order to ensure the effective implementation of the pillar strategy, ADIDAS has established a modern large distribution center in Germany to pform the original warehouse and provide distribution services to all European and Middle East sales and improve the efficiency of logistics distribution.

With the expansion of the network and the supply chain strategy with the support of the foundry, the sports commodity enterprises are more and more sensitive to the cost.

Due to the large volume of supply and the slight change in unit cost, the total cost will be greatly changed. In addition, the sales period of one style of sports shoes will be reduced to 8-9 months, which is more than half of that.

In the past, orders for the factory were placed every half month, and now it is becoming the next order. The life cycle of the shoe type is shortened from 5-6 months to 3 months.

In order to cope with this adjustment, the protection function of the supply chain is still important.

On the one hand, every household is increasing production outlets.

Nike has stepped up its layout in Asia, and in South America, Australia, Canada, Italy, Mexico, Turkey and the United States. According to the social responsibility report released earlier this year, Nike employs 650 thousand workers.

The list of overseas producers announced by Nike includes 124 in China, 73 in Thailand, 35 in Korea, 34 in Vietnam, and other factories in other parts of Asia, as well as in South America, Australia, Canada, Italy, Mexico and Turkey.

ADIDAS is the same, crazy layout everywhere.

This advantage is also obvious, like this year when China and Europe started the quota dispute, because of the diversity of origin, it could quickly turn some of its products originally ordered to China to Indonesia, Vietnam and other countries.

According to Spain's speech by Indonesian trade minister Marie Elka Pangestu, the number of orders from Adidas and several Indonesian enterprises reached US $140 million, and the number of products pferred to Indonesia and Vietnam accounts for about 20% of the total output in China.

This directly reduces the pressure of enterprises.

On the other hand, Adidas and OEM R & D maintain interaction to solve this dilemma.

There is a distance between the research and development of shoes and the production process. Footwear is not designed immediately after it can be put into production. It must go through the process of mold opening, shoe making, cost calculation, modification and perfection.

In this process, because Brand Company has only the design and sales ability, it must maintain close cooperation with manufacturing enterprises.

Adidas and his foundry enterprise Baocheng have done unparalleled in this respect.

Take Baocheng's Adidas research and development center in Dongguan's high port industrial park as an example.

The center is the world's largest jogging shoe research and development center in the world. The research and development of footwear products is jointly completed by Adidas designers and personnel of the R & D center. Adidas is mainly responsible for product design, and R & D center is responsible for all processes in the whole process of product production. Adidas

The development of the product is first determined by the Adidas company's design and material of shoe, sole and upper. Then the R & D center is responsible for developing the mold, purchasing raw materials according to the requirements, and making sample shoes at the production center of the R & D center.

After the development of the sample shoes, we should first examine the top level of Adidas, make feedback, modify it, pass the evaluation of key customers, and then pass the final evaluation of products.

In terms of cost accounting, R & D centers can make suggestions, such as poor quality, high price and long delivery time.

In these cases, although Adidas has already specified the material in advance, it may also modify the original design according to the proposal put forward by the R & D center.

R & D interaction enables Adidas and Baocheng to have a mutually embedded interface.

With this interface, Adidas can turn the design plan of its product into a production plan, and the design success rate in the high port R & D center has reached over 90%.

This ensures the effective functioning of the Adidas sporting goods kingdom.