Founded in 1924 with global headquarters in Germany, the adidas Group is the second-largest clothing and consumer goods manufacturer in the world. Specializing in sports footwear and sporting goods, the adidas Group and its brands also produce bags, shirts, watches, eyewear and other sports-related items.
When adidas purchased British-based rival Reebok in January 2006, the company decided to examine its combined U.S. distribution network. This purchase gave the company the opportunity to consolidate distribution centers, increasing and improving service levels while reducing overall operating costs.
With retailers demanding faster inventory replenishment turns, adidas set out to ensure that the new facilities could meet this demand, gaining a competitive edge in the market with more responsive fulfillment times. According to adidas facility manager Bob Henriques, planning for the consolidated DCs began with three overall goals of improving service levels to customers, reducing overall operating costs and preparing for future growth.
Read the rest of our case study to learn how our proposed optimized material flow helped adidas to overcome their manufacturing obstacles.