Adidas: Information System

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INFORMATION SYSTEMS IN ADIDAS UK
Case study based on interview with Christopher Caddick IT manager in Trafford Distribution Centre Author: Krzysztof Bazan

Submitted 02/03/2010

What is the Adidas? What are the information systems used by the company? What are the systems used for? What is a history of systems implementation within the company and why they were brought in? Are there any further plans for information systems in the Adidas UK and Adidas UK area north. Adidas is a German-based sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Rockport and TaylorMade - adidas golf company (TMAG). Adidas is a global leader in the sporting goods industry, is headquartered in Herzogenaurach, Germany, with 33,000 employees worldwide [1]. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world [2], after its U.S. rival Nike. Till 1999 Adidas company has in Europe eighty five warehouses that cooperated with forty five warehouse control systems and fifty six warehouse management systems. The company used three main sale systems which were Adispace, Adirace, WMS. Because of such a big variety of systems there were problems of information exchange between systems. The big step in unifying the information system was to introduce in 1999 one common sale system for sale in Europe. The company decided for SAP R/3 based on ORACLE database and further solutions AFS (apparel footwear solution), and mySAP CRM (customer relationship management). In the South America and Africa the company still uses Adispace system. The main reasons for introducing SAP in Adidas in Europe were European Union Legal Legislations and need of improving security of stock flow. Any new legal legislations are easier to perform for one system then for every each separately, that is why huge cost for licensing the SAP looks justified and finally brings savings. The SAP AFS is the unique tool designed for apparel manufacturers which allows to discriminate different article sizes while price for product stays same. The solution “SAP AFS provides a fully integrated system to enable a single, common view across orders, products, and inventory, enabling better customer order fulfillment.” (Armin von Hanffstengel, Head of Application Development and Support Services, adidas-Salomon,2003) [3]. The second Sap solution is CRM which helped to earn more than €1 million in benefits the first 18 months, due in part to availability of detailed and integrated customer data and the elimination of manual processes. “Automated workflow features also enable us to increase productivity without having to hire new people, and mySAP CRM helps us deliver personalized service to our retailers. The result is profitable business interactions . . .” (Hans Ruprecht, Sales Director and Head of Customer Service for Area Central, adidas-Salomon, 2003) [3]. TaylorMade was started in 1979 by Gary Adams and was independently owned until adidas bought the company in 1997 and change its name to TaylorMade-adidas Golf. “In 2006, TaylorMade/adidas had its first $1 billion revenue year, marking only the second time a golf brand has achieved this in industry history” [4]. Till 2009 TMaG was kept as a separate part of the business, but further restructuring of the company and cutting costs caused that this part of company moved its stock to TDC nevertheless TMaG still uses Salomon’s world-wide distribution and logistics system COMFIL.

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The other step in systems unification was introducing DAI Manhattan Warehouse Management System in Europe which as same as SAP is based on Oracle database. The system is most common system in warehouses, because of its flexibility it is used in small warehouses that distribute stock locally as well as...
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