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Adidas Logistics Essay

2007 words - 9 pages

Warehouse is a primary link between producers and customers. It is a part of a firm's logistics system that stores products at and between point-of-origin and point-of-consumption. Besides, warehouse provides information to management on the status. Adidas uses leased warehouse. Adidas can have the advantage of short-term space rental while using it like a private warehouse (Lambert, Stock & Ellram 2006).
When Adidas took over sporting brands Reebok and Rockport. They wanted to take chance of the efficiencies and synergies that could be achieved by consolidating inventory from five key brands, which are Adidas, Reebok, Taylor Made, Rockport and Ashworth.
On the other hand, ...view middle of the document...

Other than that, motor carrier is used by Adidas to deliver their product to retailer stores.
Nonetheless, a third party logistic named Total Logistics is an European supply chain specialist who provide a supply chain rationalization solution to Adidas. Besides, they lead worldwide supplier of sportswear and equipment. The successful project consolidated four distribution centers into a single, new 30,000m^2 facility at Trafford Park in Manchester, providing cost savings as well as capacity to deal with future volumes and expansion (Total Logistic 2014).
Adidas do not just transport their product themselves but third parties participate in transporting goods. This is to reduce environmental risk and create a benchmark pattern for evaluating the environmental performance of the third party (Krishnan 2011).

Information System
Adidas utilize the DSI system (day sales of inventory) implement the functionality for warehouse management of apparel and footwear. Functionality of DSI included information about product style, color and size, implementation of zone picking to work with materials management, communication of the warehousing operation into the SAP system.DSI also provided customized development to integrate data between the wireless, handheld radio frequency devices and SAP for transactions, including goods receipt, goods movements, replenishment, cycle counting, zone picking (According to Australia Pty Ltd). For example, with DSI, the company can solve their problem by recognizing the need of automated data collection using wireless handheld device.
With POS (point-of-sales system), Adidas can process and ship their goods to distributor and retail outlet in a record of 24 hours .This is to prevent any late delivery to the distributor or retail outlet (Perle 2014). For Example, POS system is quick and cost effectively by matching the goods and correct dispatch notes to produce shipping label and transfer the goods out to the distributers or retail outlet.
Inventory Management
Adidas are put on many effort in inventory management to maintain relationship with customer. A good management in inventory can avoid out of stock, and given real-time information regarding inventory and shipping status. Due to this, company can provide good customer service to hold customer, avoid losing best customer. Lose customer means that you are losing profit. Adidas has learned, they providing employees with the tools they need so that they can perform their jobs properly is instrumental to keeping Adidas retailers happy and continuous consumes in their stores (Erin Harris 2008).
One of the management concept used by Adidas is Enterprise Resource Planning (ERP).That is a system that includes core finance and accounting, marketing, Human Resource, and Information Technology functions that interfaces with the entire supply chain. The benefits of this system is visibility throughout company, better sense of operational control over...

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