Adidas Supply Chain Management: Challenges, Value Choices, and Operational Strategies Assignment Sample

Adidas Supply Chain Management: Challenges, Value Choices, and Operational Strategies

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Introduction - Adidas Supply Chain Strategies

The supply chain is explained as a network used by the company which is consists of people of organization and suppliers. The main purpose of the supply chain is to produce and distribute products and services to customers with high efficiency(Koberg and Longoni, 2019). It is a system that is used by organizations to develop an effective channel to ensure the delivery of goods and services within time to improve the satisfaction level of customers. This report will be analysing the challenges that are faced by Adidas in the supply chain management process. Various value choices related to the supply chain will be analysed in the report. Operational choices made by organizations related to supply chain issues will be evaluated in the report. Implementational factors will be analysed in the report for the value choices of the company. The effectiveness of the organization to deliver operational values will be discussed in the report.

Value Choices of organization Related to Supply Chain

To improve the supply chain of company this is most important for organization to work on various aspects. For this process, organization can focus on speed, quality, cost, flexibility and dependability to improve the effectiveness of the supply chain process. As there are certain challenges are faced by Adidas in supply chain management they have made some choices that can help them to reduce challenges with the supply chain system and prevent major failures in business operations. The main purpose of an organization is to improve their sales and overcome the losses in business operations.

Speed

In current time, speed is everything in the supply chain process of an organization. In current time this is major aim of organizations to deliver products and services to the customers as soon as possible to maintain higher satisfaction level of customers. Speed is the major aspect that is considered by organization in the process of supply chain management(Busse, Meinlschmidt, and Foerstl, 2017). As per the demand for goods and services, supplier of Adidas ship the raw material directly to the speed factor of company where products are assembled as per the demand in target market. To improve the speed of the production process, different automation and high-speed tools are used by company to produce goods at high speed. This is how fast and highly efficient tools and techniques are used by organization to meet demand for products and services within time. In process of goods delivery, customers are provided with high flexibility and various options to customers to get suitable products within time. This is how organization is using specific processes to maintain higher speed in the supply chain process.

Quality

Quality standards must be considered by the organization in supply chain process to maintain higher satisfaction level of customers. Quality standards are considered as formula to success. The main purpose of quality standards is to ensure safety and security of customers while using product of company and fulfil their requirements. Effective quality can help organization to develop positive image of company in target market. To maintain quality standards, standard operation used by organization to maintain effectiveness of the supply chain. In this process, standardized raw material and operation processes are used by company to manufacture goods and ensure effective delivery to the customers.

Cost

Cost is major aspect that is considered by the customer a6 time of buying products and services of company. It is most important for organization to develop effective pricing strategy to attract larger number of customers to buy company products. The pricing strategy that is used by Adidas is high low pricing strategy(Kim and Chai, 2017). In this approach, cost of products is kept higher than the competitors in target market and company also uses promotional discounts to offer products at lower price. This approach can help organization to attract more customers to buy latest products at lower costs. This is how specific approach is used by company to develop pricing strategy to increase their sales in target market. Proper standards are considered by organization to maintain effectiveness of the supply chain process.

Dependability

In the supply chain management process, this is important for organization to reduce dependability on suppliers and other aspects that can affect the operations of the business operations in target market. High dependability on supplier and service provider can reduce the functionality of organization. This dependability can reduce the ability of organization to meet deadlines in the manufacturing process. Adidas is working effectively to ensure the availability of raw material to meet demand of the marketplace. There are multiple raw material suppliers are used by Adidas to maintain continuity in business operations and manufacturing process. This is how Adidas is effectively controlling its dependability on different suppliers and it is providing capability to the organization to effectively meet the demand of products in target market.

Flexibility

The supply chain strategy that is used by the Adidas is highly flexible and completely dependent on the demand of products and services in market place. There is a multilayered supply chain is used by organization to meet product demand in marketplace with different partners who are contractor partners. These organizations help Adidas to perform its business operations effectively. On the regional basis, Adidas has planned effective supply chain to fulfil the requirement of raw material. It has provided more flexibility to the Adidas to perform business activities. This flexibility can help organization to manage global operations effectively.

There are different perspectives are considered b7 the organization to manage their supply chain on global level. All the choices made by the organization are relevant for global business operations and effective supply chain management(Cohen and Lee, 2020). Supply chain of organization is effective enough to meet all the performance standards in market place.

Operational Choices of Company

For an organization, this is most important to effectively manage its business operations on global level to maintain performance in market place. This is major objectives of organization to manage its operations according to the demand of products and services in target market. Four V’s of operation management can be considered by the organization for effective production of ready sell product.

Volume

Volume is considered a major aspect of supply chain process that can help organization to meet market demand in marketplace. It is most important for the organization to maintain the produced volume of products in business operations(Singh, Chaudhary, and Saxena, 2018). For effective management of supply chain, this is most important for organization to produce goods as per demand of product in market. Effective data management processes can be used by organization to maintain production as per the product demand. This can help organization maintain customer satisfaction and avoid operational failure on global level.

Variety

Variety is major aspect that must be considered by the organization to develop effective customer base in market place. In this operation management approach, Adidas can provide range of products and services to the customers to keep them satisfied and loyal to the company. In the business operations company can use innovative and creative ideas to develop more designs of products and services to attract new customer base and maintain satisfaction level of customers.For example, Adidas can use latest technologies like Automation, artificial intelligence and CNC machines to produce goods with more creativity in large numbers. This is how global need for company product can be met.

Variation

This operation management aspect is directly related to the continuous change management process in organization(Esper, 2021). This is important for company to implement regular changes in products and processes to perform effectively in marketplace. As per the current trends in marketplace, the organization needs to keep flexibility in business operations. This flexibility to make changes in business operations and products as per market trends can help them to maintain performance standards. It also can help company to maintain productivity and retain customers for longer time.

Visibility

There are different promotional processes are used by organization to maintain profit standards in business operations. Increasing sales and maintain growth in target market, this is important for company to develop positive image in global market. In this process, latest approaches of promotion, effective supply chain and better operation management process to improve the visibility of company in target market.

4 V’s in operation management processes can be used by organization to maintain operations in market place. Effective operation management strategies can be developed by organization with 4V’s. This approach also can help organization to avoid various challenges that are currently faced by them in business operations. This approach is also effective to avoid failures that are result of ineffective predictions related to marketplace. This is how the overall productivity of company can be improved in global market.

Implementational Factors in Supply chain

This is crucial for organization to consider different implementational factors in supply chain process to maintain higher productivity and operation stability in business process.

Structure of Supply chain

In the supply chain process of company, it is most important to develop multilayer system to maintain stability in supply chain of company(Litke, Anagnostopoulos, and Varvarigou, 2019). In the multilayer supply chain, organization can develop supply chain system step by step to keep it effective. For complete supply chain system organization can develop effective structure to keep it stable against the fluctuations in market.

Locations of Supply chain

In the supply chain management process, role of location is most important. For effective logistics, this is most important to develop supply chain in effective locations. This can help organization to avoid failures in logistics and supply chain.

Inventory of Supply chain

Inventory management is most crucial part of the supply chain management process of organization. Efficiency of the supply chain management process is completely dependent on effective management of inventory of organization. In the inventory management process organization can use effective approach to meet demand in market place. There are different inventory management strategies can be used by company to maintain effectiveness of supply chain on global level. Just in time approach is considered as most effective approach to managing the supply chain of company. In this approach, flow of goods is maintained as per the capacity of inventory with movement of products. Supply of goods is only performed in inventory based on requirement. This approach is already used by Adidas in supply chain management process. This is how inventory in supply chain can be effectively managed.

Layouts of Supply Chain

Supply chain layout of organization is most important for effective delivery of products in marketplace. This is important to design effective layout of supply chain to maintain operations of organization on global level. In the development and designing of supply chain layout organization needs to consider all possible options to keep it reliable and effective for the business operations of company.

This is how various implementational factors and considerations must be followed by organization to develop effective and efficient supply chain.

Organizational Fit with Choices

Adidas is one of the most famous global sports brand that is performing its business operations in different countries. This is important for organization to make effective choices to avoid major failures in business process. Organization has faced failure in supply chain due to imperfect prediction of future demand in marketplace. It can be considered as major failure of data system and supply chain of company(Tokito, 2018).For effective development of supply chain, some considerations are made by organization. These considerations can be used by the organization to avoid further issues in supply chain. Development in supply chain process and information system can be made by organization to get better outcomes from business operations.

Conclusion

This report is concluding importance of supply chain management and operation management for business organization. Value choices of organization related to speed, quality, cost, dependability and flexibility of supply chain have been evaluated in report. Choices made by Adidas related to operation management and supply chain management has been evaluated in study. Various implementational factors also have been considered in report to develop better understanding of the implementation of supply chain management process. Organizational fit has been analyzed for the changes that are prospered in supply chain management process.

References

Books and Journals

Busse, C., Meinlschmidt, J. and Foerstl, K., 2017. Managing information processing needs in global supply chains: A prerequisite to sustainable supply chain management. Journal of Supply Chain Management. 53(1). pp.87-113.

Cohen, M.A. and Lee, H.L., 2020. Designing the right global supply chain network. Manufacturing & Service Operations Management. 22(1). pp.15-24.

Esper, T.L., 2021. Supply chain management amid the coronavirus pandemic. Journal of Public Policy & Marketing. 40(1). pp.101-102.

Kim, M. and Chai, S., 2017. The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics. 187. pp.42-52.

Koberg, E. and Longoni, A., 2019. A systematic review of sustainable supply chain management in global supply chains. Journal of cleaner production. 207. pp.1084-1098.

Litke, A., Anagnostopoulos, D. and Varvarigou, T., 2019. Blockchains for supply chain management: Architectural elements and challenges towards a global scale deployment. Logistics. 3(1). p.5.

Singh, R.K., Chaudhary, N. and Saxena, N., 2018. Selection of warehouse location for a global supply chain: A case study. IIMB management review. 30(4). pp.343-356.

Tokito, S., 2018. Environmentally-targeted sectors and linkages in the global supply-chain complexity of transport equipment. Ecological economics. 150. pp.177-183.