Adidas Supply Chain Case Study
In order to cope with these challenges, Adidas has been applying Agile model of logistics and supply chain management. Agile Logistics and Supply Chain Management , in Adidas's case can be described with several characteristics as follows:
Mass Customerization
The base idea of this model is to produce and deliver various products at the level that most customers can find what they want when getting to our brand. However, various choices usually lead to the long process of decision-making process from customers. When the streamlines are identified, key suppliers will produce custom components to achieve the economy of scale.
Fast Transportation
When it needs fast response to meet constant changes in customer demands and takes longer time for …show more content…
Moreover, the automated production lines can also solve three problems. First, it can avoid the cost increase due to operating in high-wage countries like European countries and the United States. Second, it creates the favorable conditions for the quality control systems to operate in each production lines to make sure that all sustainable criteria are strictly complied. Third, in the near future, the number of shipping contracts from Asia-based manufacturing factories to the distant markets will significantly reduced, thus reducing the demand for airway transportation, causing high GHG emission rates during the production …show more content…
Up to 43% of the cotton material using in 2015 production line of Adidas is proved to be friendlier to the environment. One significant achievement of Adidas is the revolutionary invention of Better Cotton as an enronmental solution for the very first stage of production lines, material sourcing. In 2015, 43% of the cotton materials in Adidas global production lines was Better Cotton, higher than the estimated target of 40%. This result brough the company closer the goal of 100% Sustainable Cotton set for 2018. The success of environmentally friendly materials gained by the transparent planning and conducting process with suppliers and international teams. Better Cotton has been sourcing in many countries such as Turkey, Brazil, US, Mali, Pakistan and India
Mass Customerization
The base idea of this model is to produce and deliver various products at the level that most customers can find what they want when getting to our brand. However, various choices usually lead to the long process of decision-making process from customers. When the streamlines are identified, key suppliers will produce custom components to achieve the economy of scale.
Fast Transportation
When it needs fast response to meet constant changes in customer demands and takes longer time for …show more content…
Moreover, the automated production lines can also solve three problems. First, it can avoid the cost increase due to operating in high-wage countries like European countries and the United States. Second, it creates the favorable conditions for the quality control systems to operate in each production lines to make sure that all sustainable criteria are strictly complied. Third, in the near future, the number of shipping contracts from Asia-based manufacturing factories to the distant markets will significantly reduced, thus reducing the demand for airway transportation, causing high GHG emission rates during the production …show more content…
Up to 43% of the cotton material using in 2015 production line of Adidas is proved to be friendlier to the environment. One significant achievement of Adidas is the revolutionary invention of Better Cotton as an enronmental solution for the very first stage of production lines, material sourcing. In 2015, 43% of the cotton materials in Adidas global production lines was Better Cotton, higher than the estimated target of 40%. This result brough the company closer the goal of 100% Sustainable Cotton set for 2018. The success of environmentally friendly materials gained by the transparent planning and conducting process with suppliers and international teams. Better Cotton has been sourcing in many countries such as Turkey, Brazil, US, Mali, Pakistan and India