If the success of NIKE is the embodiment of the combination of brand, marketing and logistics, Adidas’ success in the brand strategy is not due to the cost savings. This is reflected in the supply chain.
Outsourcing logistics guarantee kingdom operation
If the success of NIKE is the embodiment of the combination of brand, marketing and logistics, Adidas’ success in the brand strategy is not due to the cost savings. This is reflected in the supply fake yeezys for sale.
ADIDAS’s logistics strategy is different from NIKE. After long-term development, NIKE has established a good logistics infrastructure and uses its own logistics system; ADIDAS is more likely to outsource its logistics operations through cost accounting, in order to reduce operating costs.
As early as the middle of 1996, ADIDAS paid more attention to the control of logistics costs under the condition that it should not affect the service level of customers. After repeated trade-offs, ADIDAS decided to outsource the distribution of its clothing in the United States to UPS worldwide in 1996. The logistics company assumed; in the first half of 1997, it cooperated with CALIBER Logistics to outsource the distribution of sports shoes produced at its SPARTANBURG plant in the United States to CALIBER. The logistics cooperation with these companies has produced good benefits for ADIDAS, which not only greatly saves costs, but also improves the quality of logistics services, so that their products can be quickly delivered to customers.
In 1996, ADIDAS continued to adjust its sales channels to turn part of the concessionaires and distributors into subsidiaries of the group. Due to this change, ADIDAS’s concession utilization income in 1996 decreased slightly, from 100 million in 1995. The German mark has been reduced to 907 million marks. However, the gains from the remaining concessionaires and distributors increased by 8% compared to 1995.
In Latin America in 1997, in order to achieve full control of the ADIDAS brand, it is expected that in the area of regional management in 1998, it will continue to take over the distribution of ADIDAS products in viable areas.
Fake yeezys 350 v2 strives to reduce costs through cost control. In countries where SALOMON sold products through distributors, ADIDAS was used to sell products in institutions in these countries, thereby reducing costs and increasing efficiency. ADIDAS will rationalize sales channels, coordinate the sales and distribution channels of ADIDAS and SALOMON, and leverage the strong collaboration between ADIDAS and its retailers in footwear to promote sales of SALOMON, such as SALOMON’s sales in the skating industry. TAYLORMADE’s strength in the retail of golf products also contributes to the sale of ADIDAS clothing and footwear.
In 1998, the logistics operation was completely reorganized within the scope of ADIDAS-SALOMON Group. The strategic focus of ADIDAS in 1998 was first to complete the merger with SALOMON. In 1998, the new golf and bicycle business unit gathered TAYLORMADE’s advanced equipment and ADISAS’s outstanding experts in clothing and footwear. These two organizations promote their own sales by leveraging existing sales channels to jointly develop products.
In the group reorganization, ADIDAS American Golf Company merged with TAYLORMADE’s golf institution and moved to the location of TAYLORMADE, CARLSBAD, California. In Europe, an organization specializing in the sale and distribution of golf products was established in the UK to establish a base to better serve the region’s sales channels.
Among the strategic priorities, the second is to establish a wholly-owned subsidiary in Japan to take over the distribution of clothing and footwear products in the region. ADIDAS originally commissioned DESCENCE to undertake the sales and distribution of apparel and footwear products in the Japanese market. Due to the expiration of the company’s entrustment agreement at the end of 1998, ADIDAS has vigorously built its distribution subsidiary to ensure Japan’s important market in Asia. The work began in 1997 and on April 19, 1998, the company was formally established with 113 employees. ADIDAS seeks to make the company a base for its penetration into the Asian market. It will take over the sales and distribution operations that DESCENCE originally assumed for ADIDAS in the first quarter of 1999.
Since 2000, ADIDAS has implemented the “three pillars” strategy for electronic transactions in order to meet and adapt to the Internet era. First, it has a global market alliance with its European subsidiary, Sports.com, which means that it has worked extensively with the two companies in the field of electronic trading to promote the ADIDAS brand and its products. This globally beneficial partnership 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 transactions, making it possible for the three companies to use each other’s brands and providing great potential for online sales of ADIDAS products. Second, it is a major complement to the above-mentioned electronic trading strategy by cooperating with some important retailers in electronic trading. Finally, sell your products on your own website. In order to ensure the effective implementation of the pillar strategy, ADIDAS has transformed the original warehouse and established a modern large-scale distribution center in Germany to provide distribution services for sales in Europe and the Middle East, and improve the efficiency of logistics and distribution.
Expanding the network and integrating the foundry’s guaranteed supply chain strategy
In the new century, sports goods companies are becoming more and more sensitive to cost. Due to the large supply, small changes in unit cost will cause great changes in total cost; in addition, the sales period of one style of sports shoes is reduced to 8-9 months, which is more than half of the previous. In the past, the foundry was placed next time every half month, and now it is becoming the next order every week; the life cycle of the shoe type has been shortened from the previous 5-6 months to about 3 months.
In order to cope with this adjustment, the guarantee function of the supply chain is still important. On the one hand, each family is increasing production outlets. Like Nike, it has stepped up its efforts 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 a total of 650,000 workers. The list of overseas producers announced by Nike includes: 124 in China, 73 in Thailand, 35 in South Korea, and 34 in Vietnam. In addition, there are other parts of Asia as well as South America, Australia, Canada, Italy, Mexico, and Turkey. Factory in other places. And ADIDAS is also the case, crazy layout in various places. This advantage is also obvious. For example, when China and Europe started the quota dispute this year, because of the diversification of production areas, some of the products they originally ordered from China could be quickly transferred to Indonesia and Vietnam. According to Spain’s quote from Indonesian Trade Minister Marie Elka Pangostu, Adidas and Indonesian companies have orders of US$140 million. It is expected that the number of products converted to Indonesia, Vietnam and other countries will account for about 20% of the company’s current production in China. This directly reduces the pressure on the enterprise.