adidas MANCHESTER, UK
adidas SCORES SUPPLY CHAIN GOALS WITH AUTO DC
A powerful combination of network consolidation and prudent investment in warehouse automation has resulted in a high performance supply chain for global sportswear brand adidas.
10
DEMATIC LOGISTICS REVIEW
Efficient and timely distribution of its state-of-theart sports footwear, apparel and accessories is a critical issue for adidas, with its supply chain having been tested in recent years by the rapid expansion of the business. In 2006, acquisition of the Reebok brand presented both a challenge and an opportunity to redefine and restructure its European Area North distribution operation, servicing retailers in the UK, Eire and Benelux. Analysis of the merged company’s distribution network highlighted the efficiencies that could be achieved by consolidating inventory from five key brands – adidas, Reebok, TaylorMade, Rockport and Ashworth – with logistics consolidated through a single automated distribution facility in Trafford, Manchester, replacing four existing conventional warehouses. The benefits that have accrued from this 20 million pound investment in automation is now shaping the way adidas is viewing its distribution strategy for Europe and wider markets. “Automation allows us to handle a lot of volume in a relatively small amount of space, which keeps overheads down,” said Tim Adams, Global Business Solutions Warehousing, adidas Group. “It also helps with labour and resource utilisation by smoothing out peaks and troughs in demand,” said Mr Adams. However, beyond this Adams sees that in recent years automation has become far more flexible, enabling a range of possibilities from the picking of cartons, right down to an individual pair of shoes. Importantly, “it allows for much greater accuracy,” he said. New picking strategies for new Trafford The purpose built 350,000 sqft (32,500 sqm) DC in Manchester was kitted out within 18 months. Dematic worked with adidas to create a dynamic, space and cost-efficient warehouse.