Supply Chain of Adidas

UPS Supply Chain Solutions SM
case study
adidas Goes for the Gold in Customer Service adidas

Consumer Goods
adidas-Salomon AG, based in Herzogenaurach, Germany, is a global leader
in the sporting goods industry, delivering high performance footwear, GEOGRAPHIC AREA SERVED
apparel and accessories to virtually every country in the world. To keep
pace with rapid growth, the company’s North American corporate unit, United States
adidas America, hired UPS Supply Chain Solutions to help streamline and
enhance its U.S. distribution operations.
CHALLENGE
Client Challenge
Improve the supply chain perform-
For decades, adidas has remained at the forefront of the highly competitive ance of a leading athletic apparel
sporting goods industry by continuously updating its product pipeline with company to accommodate rapid
cutting-edge designs and technologies. The company backs up the quality of growth and efficiently meet the
its products by going the extra mile for customers. Providing consistent on- requirements of major retailers and
team distributors throughout the
time delivery is a vital component of the company’s success.
United States.
adidas America, based in Portland, Oregon, worked with multiple third-
party logistics providers in the past. As the company’s market share grew
rapidly in the United States — and the needs of customers became more
SOLUTION
complex — adidas America hired UPS Supply Chain Solutions to upgrade
its distribution network. Consolidate the distribution system
into a single, streamlined network,
“We needed a full-service logistics provider with substantial resources to outfitted with automated inventory
support our current business needs as well as our future ones,” said Bob and order fulfillment systems to
Henriques, Director of Logistics for adidas America. “UPS Supply Chain allow the company to rapidly scale
Solutions enabled us to quickly increase our distribution capacity by lever- its services and add enhancements
aging UPS Supply Chain Solutions’ infrastructure and logistics technology to the supply chain as needed.
and at the same time enhance our customer service.”
Our Solution
R E S U LT S
Each year, adidas distributes millions of units of footwear, apparel and
• Increased order accuracy rate
sporting goods equipment to thousands of U.S. retailers.
• Boosted on-time delivery
UPS Supply Chain Solutions became a full-service source for adidas performance
distribution, consolidating what was previously handled by multiple third-
party logistics providers into a single, streamlined network. The company’s • Enhanced visibility throughout
Spartanburg, South Carolina, distribution center is linked electronically supply chain
with UPS facilities in Hebron, Kentucky and Ontario, California.
• Improved customer satisfaction
• Added flexibility to operations

“In our business,
Every three months, the company introduces as many as 10,000 we have to react
new apparel items and 4,000 new footwear items. Many retailers are
implementing a just-in-time delivery cycle, requiring more orders more quickly to remain
often as opposed to bulk shipments. The team orders filled by adidas are competitive. UPS
also highly variable, ranging from as few as 50 shipments to as many as
2,500. A high percentage of the units shipped by adidas are for priority Supply Chain
requests, which must be received within one or two days. Solutions gives us
“In our business, we have to react quickly to remain competitive,” the flexibility to
Henriques said. “UPS Supply Chain Solutions gives us the flexibility
to efficiently ramp up or ramp down our operations. We are able to efficiently ramp up
consistently fill orders on time, even though our order profile is constantly or ramp down our
changing.”
operations. We are
UPS Supply Chain Solutions also boosted adidas’ ability to adapt its able to consistently
supply chain to meet customer specifications.
fill orders on time,
“Complying with customer requirements is extremely important to our
business,” Henriques said. “UPS Supply Chain Solutions has increased even though our
our capacity to do business by enabling us to quickly provide value-added order profiles are
services such as special labeling, garment on hanger and sending electronic
advanced shipment notifications.” constantly changing.”
UPS Supply Chain Solutions also supports the adidas E-Commerce —Bob Henriques
business through interfaces to the UPS warehouse management system. Director of Logistics
This interface allows adidas to fulfill orders and leverage the
adidas America
UPS package network.
“UPS Supply Chain Solutions has helped us improve the consistency,

accuracy and completeness of our shipments,” Henriques said. “As our
business needs keep evolving, we know that having UPS Supply Chain
Solutions on our team will continue to be a major asset.”
For more information please contact us

1.800.742.5727 U.S.
1.678.746.4365 International
[email protected]
Visit us at ups-scs.com
© Copyright 2005 United Parcel Service

of America, Inc. UPS, the UPS brandmark,
and the color brown are trademarks of
United Parcel Service of America, Inc.
All rights reserved.10% Post-consumer content E
CS.SCS.CG.597 7/05 01970215
UPS Supply Chain SolutionsSM

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UPS Supply Chain Solutions SM

adidas Goes for the Gold in Customer Service adidas

• Added flexibility to operations

“UPS Supply Chain Solutions has helped us improve the consistency,

For more information please contact us

© Copyright 2005 United Parcel Service

UPS Supply Chain SolutionsSM

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