Adidas Logistics and Inventory Management
Added on 2020-03-16
11 Pages2311 Words497 Views
Business DevelopmentFinance
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Logistics in Adidas1
ContentsIntroduction........................................................................................................................3Brief introduction to the Adidas..........................................................................................3Interference of the Logistics with the three main department of the selected organization...........................................................................................................................................3Analysis of Effectiveness and Efficiency of Current Order Processing System of Adidas5Inventory Management......................................................................................................8Conclusion.........................................................................................................................9References.......................................................................................................................102
IntroductionLogistics is referred to as the most important part of the supply chainmanagement and it involves various functions in regards to the inventory managementcycle. It is true that every company totally dependent upon its inventory managementsystem implied in the business operation cycle. Logistics helps in planning, implementsand also controlling the flow of goods and service from the point of origin to the point atwhere it ends. So it can be said that it is management driven system that truly based onthe customer demand. Logistics management assures the efficient and effectivemanagement, reverse flow and storage of inventory. In this report the logistics system of Adidas has been evaluated in detail throughanalyzing the different interfaces of logistics and order cycle. This report also guides onthe inventory management of the goods provided by the Adidas at stores and onlineprocessing. Brief introduction to the AdidasAdidas it one of the famous company from German that is involved in designing,manufacturing and sales of clothing products, shoes category and other accessories.Adidas is known for its brand name and its quality products. Adidas is the largestcompany in Germany that manufactures shoes and also the second largest sportswearcompany in the world. The logistic system of the Adidas is the most complex one due tolevel of demand it handles with the assurance of highest quality products (History ofAdidas, 2013).Interference of the Logistics with the three main department of the selectedorganizationThere are mainly three dimensions of the supply chain network of anyorganization. It can be classified as below:Intrafunctional Coordination: This dimension administrate the different activitiesof the one main function of the supply chain management that is logistics 3
Interfunctional Coordination: As per dimension there must be perfect coordinationbetween logistics and production, marketing, and accounting as they are themost important functional areas of any companyInterorganizational coordination: It is the relation between two different firms,particularly in supply chain management it can be suppliers and company itselfIn this section of the report, the concern in the second dimension ieInterfunctional Coordination. The production of any goods requires procurement of rawmaterial, machines to work on, labour to work on and various parts and componentsthat are put in series of process to have a required product. It is also true that quality offinished goods will definitely dependent upon the type of raw material has beenobtained from the supplier (Coyle, J.J., et. al.2012). The interface of logistics come hereas logistics plays an important role in managing the procurement of quality raw materialand also to make proper arrangements of its storage. So the use of logistics startsdirectly from the suppliers through procurement of the raw materials and sending themto the production department. In Adidas mostly the manufacturing work has beenoutsourced but company manufactures their core product that is shoes in their homeproduction unit. Adidas logistics is most easy to handle as it has simplifies each rule tomake the transfer the goods from the suppliers end to the production department. Afterproduction has been carried out goods has to be sent for warehousing purpose andafter that it is moved for sales made to wholesalers and retailers. Company is alsoinvolved with the sales of goods through online shop and it is through appointing theagents that triggers the sales directly from the different warehouses in various part ofthe country. Marketing is also the important concept in the organization as it involves with themarketing mix the four Ps, namely price, product, promotion and place. The price ofproduct covers the cost of transport, so larger the shipment lesser will be thetransportation rate (Chakravarty and Eliashberg, 2005). Adidas usually uses its owntransport vehicles to deliver goods in its own nation. For outbound sales goods aregenerally send through ships. Product packaging and its storage must be doneprecisely and advice of logistics manager is very useful as changing the dimensions of4
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