Please answerall three(3) discussion questions. DQ3 is associated to your paper; it asks about the metrics you intended to you to support your paper thesis. Use the concepts and terminology discussed

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[Document title]COST REDUCTION & PROCESS IMPROVEMENT

Abstract:

Adidas is one of the oldest company as a sports good manufacturer with having very diversified and strong history. Adidas was facing some serious challenges in its supply chain like meeting the demands and problems in distribution network. Various Quality tools are applied to analyze the problems and its impact on various processes. These tools helped to find the problems and improve the processes and reduce cost. The organization will deal with all distribution-related issues by time-sensitive strategies. It is important that all essential functional factors are addressed in order to produce efficient results

Introduction: 3

Problem Statement 3

As in Condition 4

Pareto Chart 6

Control Chart 6

Analysis: 7

Cause and Effect Diagram 8

Conclusion: 14

References 16

While urban legend states that "Adidas" is an anagram of the phrases "I am dreaming about sports every day," its founder by Adoiph "Adi, “Dassler names the athletics wear company. He and his brother formed a worldwide branding business, but it is not as well-known their background as leaders of the Nazi Party. Avid football player Adolph (Adi) Dassler, the son of a cobbler, invented track and field spike shoes in 1920 at the age of 20. The German sports shoe company Gebrüder Dassler OHG, later known as Adidas, was founded four years later by Adi and his brother Rudolph (Rudi). Adi's specifically made shoes started gaining international recognition from the 1928 Olympics in Amsterdam. Dassler had more than 700 patents on sports shoes and other sporting equipment on the occasion of his death in 1959. Adidas was the leading sports shoe brand in US in the 1970s.

Since supply chains operate as a system or network, supply chain issues affect the entire supply chain In the supply chain as a whole this can lead to greater inefficiency. The organization faces a poor distribution network strategic challenge. Operating for more than 80 years in all countries, the organization is facing difficulty in running with a large distribution network. The supply chain of the company is long and complicated, making the management difficult. The company also faces the challenge of rising market individualization demand In order to make the right decisions for the supply chain as a whole, the consequences of acts and choices to one section of the supply chain should be weighed. This paper tries to address this question:

Is there evidence of inefficiencies in the supply chain or of problems which penetrate Adidas' entire supply chain?

HERZOGENAURACH, Germany-- Adidas AG said a In North America the supply-chain shortage will keep it from meeting demand for its products in the next months, shares settling in one of the most significant markets of the world's second-largest sports goods manufacturer.

Chief Executive CEO Kasper Rorsted reported that the company has failed to satisfy increasing midprice demand, and that the cost to the company is estimated at between EUR200 million and EUR 400 million (225 million and 450 million).With a regional and mesh network supply chain, the organization efficiently handles transportation and distribution, but still faces a competitive threat from a weak distribution network. Operating for more than 80 years in all countries, the organization is difficult to run with a large distribution network.

Furthermore, based on approximately 570 companies in the world, the supply chain of the business is long and complex (Berger, 2008, 39). The distribution is hard to manage effectively with the large supply chain.

The company also faces the challenge of increasingly individualizing demand with a wide range of product lines. The organization had challenges in successfully preparing and predicting shifts in customer buying power and making individual goods options, resulting in problems with the management of warehouses and distribution. Despite of all these issues, it is important for the company's distribution network to enhance or develop. The procurement and market distribution of products has been greatly affected by globalization and trade liberalisation in the new through competitive climate. The introduction of trade liberalization and the rise of economies such as Brazil, Russia and India will mean a continuous dramatic change in supply chains from different industries worldwide. Therefore, the task of improving the Adidas distribution network is chosen to strengthen it in time and to allow companies to adapt to potential demands (Rhodes, Warren and Carter, 2009, p. 52).

Worldwide and emerging economies are changing, and companies from various industries are demanding to reconfigure and re-optimize their distribution and service networks. In addition, it is important that the organization re-configure and re-optimize its distribution networks and use new distribution technologies and techniques in coping with growing competition and expanding networks. Adidas will be able to develop the distribution network and to restructure it in a way that will function better in the future, using even some new and modern delivery methods and techniques.

The supply chain can be treated as a network instead of a linear chain. ."Nick FinillSenior Analyst of Intelligent Supply Chain, ABI Research

Lag time is the symbol, one might claim, of a sluggish supply chain, inflexible.

The CEO of Adidas notes that they have not "reacted adequately fast to this demand post." It means that the demand forecast was not the problem. The ability to execute a robust forecasting demand strategy is critical and calls for consistency in the supply chain from end to end.

"Environmental demand change is basically a textbook case of a low sensitive (outsourced) supply chain. Basically, the bullwhip effect is more closely linked to an inefficient supply chain than to procurement or preparation”

IPO Diagram Adidas:

PROCESS

Less plant capacity than demand

Complex and long supply chain

Weak distribution network

Equipment

PRODUCTION OF PRODUCT

SUPPLY CHAIN INEFFICIENCIES

METHODS

PROCEDURES

PRODUCT DISTRIBUTION

Pareto Chart

Control Chart

Many customers who suffer from quality or distribution issues do not necessarily assume that this is an issue in the supply chain. 'We attribute it all to the company's inefficiency,

The production of Adidas can't satisfy consumer demand due to capacity constraint. The company also faces the challenge of increasingly individualizing demand with a wide range of product lines. Changes in customer purchasing power and the choices made it hard for the company to effectively schedule and forecast, creating challenges to manage warehousing and distribution and to adapt to market demand because of production efficiency. Despite of all these issues, it is important for the company's distribution network to enhance or develop. At present, the purchase and selling of goods has been highly affected by globalization and market liberalization in an ever-increasing demand climate. They have a long and complicated supply chain that helps them to handle their core processes and distribute goods to consumers effectively.

Machinery & Equipment

People (consumers)

Due to extensive product line individualization of consumer demand taking place

Capacity limitation of manufacturing plant

Consumers demand are not being fulfilled and no effective distribution network due to which orders are delayed

inefficiencies in supply chain

Less production which doesn’t meet demand of customers

Process & method

Production

Production limitation due to plant capacity

Storage issue in warehouse

Difficulty in managing distribution network

Adidas focused on expanding its business due to which it introduced extensive product line but when expanding a business or product line there are few factors that should be considered.

1. Adidas has limited capacity of manufacturing due to limitation of manufacturing plant so it was a challenge to meet the demand of customers. Due to extensive product line the demand for Adidas increased but because Adidas had limited capacity of manufacturing faces difficulty in fulfilling the demands and orders.

2. When new product line is introduced we have to consider the inventory storage factor because after manufacturing of goods the products are stored in inventory for delivery. But Adidas just expanded its product line but didn’t focus on the factor of warehouse storage which caused a problem for Adidas that when that goods were produced it was difficult to store them because of restricted inventory capacity.

3. When a company expands in terms of products it should also consider its distribution network because an effective and well operated distribution channel plays a very vital role in supply chain. Adidas introduced its products but ignore the distribution channel which was one of the other factor that caused a problem for it. They doesn’t have integrated and effective distribution channel due to operating into many countries and dealing with a lot of demands from consumer it was difficult for Adidas to deliver orders to customers on time it resulted in delays of orders.

Process risk results from production process unreliability and risk of demand is perhaps the worst risk R. Process risk. Bhatnagar, A.S. Sohal "Competence of supply chains: position effect assessment, complexity and industrial practices"

Greater risk in the supply chain leads to less effective metrics such as production prices, lead time, flexibility and reactivity.

Several authors have analyzed risk elements using various methodologies to reduce the effect on the efficiency of the supply chain. An innovative approach has been developed to identify, control, and analyze incoming supply risk using a multi-attribute decision-making process called the Analytical Hierarchy Method. derived from the ever more dynamic global networking of the supply chain include increased production delays and quality issues potential (Bhatnagar and Sohal, 2005). As early as Davis (1993),

In the end, the customer decides the success and failure of supply chains on the market. The right commodity, in the right spot, not only is the lynchpin to competitive success, but the secret to survival at the right time for the consumers. SCM is competing for pricing, working together with consumers and suppliers to build a position on the market based on end-consumer demand (Chopra & Meindi, 2007)

The success and failure of supply chains are ultimately

Determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

Competitive success but also the key to survival

The success and failure of supply chains are ultimately

Determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

Competitive success but also the key to survival

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

Process risk results from the unreliability of the production process and demand risk is maybe the most serious risk R. Bhatnagar, A.S. Sohal Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturing practices

Greater risk in supply chain has a poorer result in performance’s metrics such as inventory costs, lead-time, flexibility and responsiveness

Several authors have investigated the risk elements using different methodologies seeking to reduce the impact on supply chain performance. An integrated methodology has been proposed to classify, manage and assess inbound supply risk using an Analytical Hierarchy Process, defined as a multi attribute decision-making method. deriving from the increasing complexity of global supply chain networks, which

include increased potential for delivery delays and quality problems (Bhatnagar and Sohal,

2005). As early as Davis (1993),

The success and failure of supply chains are ultimately determined in the market place by the end consumer. Getting the right product, at the right place, at the right time to the consumer is not only the lynchpin to competitive success but also the key to survival. SCM is about competing for value, collaborating with customer and suppliers to create a position of strength in the market place based on value derived from end consumer (Chopra & Meindi, 2007).

Recommendation

The success and failure of supply chains are ultimately

Determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

The success and failure of supply chains are ultimately

determined in the marketplace by the end consumer.

Getting the right product, at the right price, at the right

time to the consumer is not only the lynchpin to

competitive success but also the key to surviva

Recommendation:

Whether the poor distribution network is to be tackled efficiently or to improve its global distribution system , the organization must really concentrate on enhancing its various aspects, such as logistics in the stores, warehousing, procurement, transport, planning , tracking, etc. (Rhodes, Warren and Carter, 2009, p. 55). To improve the distribution network of the organization, it is important to focus on the co-ordination of all these elements, which cannot be accomplished unless a variety of delivery methods and technologies is used as follows:

It is crucial to improve first within the company and concentrate on keeping the added value for the consumer and cutting its business costs in order to make the business distribution network effective. In-store visibility is required for solutions. Having RFID technology will allow the company to provide a real-time view of the inventory, along with device warnings when suppliers are not functioning properly or when voles are visible. The company must concentrate on the use of collaborative physical logistics following its focusing on in-store logistics. Efficient use of integrated physical logistics would help Adidas improve the distribution network, which would also help to reduce the economic and environmental effects of transport.

For rising demand volatility, it is important for the organization to create new models that can typically ease the demand signals from its clients. Efficient models which overcome traditional approaches to retail supplier integration and partnership are required with that challenges and demand uncertainties. The organization may use vertical approaches such as promotions / calendars and the capacity to supply / demand to launch and facilitate projects. In this regard. (2016 Future Supply Chain, 2008, p. 26).

However, the cooperation on the implementation of other methods that can also be used in this regard apply to mutual supply / demand preferences based on real-time visibility of the products and the physical movement of customers. Monitoring cooperation requires mutual real-time access on the basis of security frameworks to initiate results and promotions (2016 Future Supply Chain, 2008, p. 27). With the aid of these devices, production and distribution can be expected and handled effectively.

If Adidas increases its manufacturing capacity or does outsourcing and meets the demand of customers in this way, it the customers will be satisfied and will create good reputation of the brand. If distribution channels are well integrated and managed, then the customers will get appropriate delivery on time which will also result in customer satisfaction and strong brand image. It will also help to retain customers.

Stakeholders involve employees, customers, suppliers and sometimes even the government. If Adidas starts fulfilling the demand of customers and focuses on its distribution channel and follow the techniques mentioned above would satisfy stakeholder. E.g. if customers are satisfying and retained the business will operate well and earn profit which will satisfy the employees as the business is earning profit and has good reputation in market.

If we focus on minimizing out inefficiencies in supply chain, we can be able to improve our operations.

The facts and figures analyzed above represent us that it is very necessary to make improvement in our supply chain process and it creates unreliability throughout the process. It also leads to effect the lead time, inventory cost, production cost, inefficiencies which effect the overall performance of Adidas. The failure and success of an organization depends upon its supply chain system by delivering customers at right time and right place. So it plays a very important role in organizations success so the supply chain of Adidas should be revamped or reconsidered to minimize all the inefficiencies regarding the production and distribution to carry all the processes smoothly and efficiently.

For the effective implementation of the above-mentioned distribution tools and techniques it is important for all those involved in manufacturing, operations and distribution management to deal with practical issues such as adequate training. The business cannot use modern distribution equipment and technologies without adequate and consistent training for all employees. An important practical aspect to be resolved is the efficient planning and conception of these tools and techniques, in addition to training. Different new distribution tools and techniques are difficult to apply without careful planning and design (Rushton, 2010).

Extensive cooperation involves extensive preparation and knowledge steps in order to identify implementation issues or delays. The introduction of advanced delivery tools and techniques and related ICTs is a major focus of security. It’s crucial for corporate management to have secure systems for effective monitoring for the safe application of various tools or techniques.

Drawing on the above discussion, it becomes obvious that physical distribution management is difficult to manage and handle in the flow of multiple aspects and components. With increasing demands, fluctuations, expanded market conditions, etc., the management of total distribution becomes more critical. The large and complex Adidas supply chain makes it difficult for its employees to manage distribution in nearly every part of the world, and that is why the application of various distribution tools and techniques according to their needs and challenges is recommended.

Adidas has to re-structure its current distribution network, which can be applied using the methods and strategies described above, with increasing competition and evolving economic environments. The company would be assisted in improving visibility, logistics, inventory, warehouse, transport and overall distribution through all the tools and techniques suggested. The organization will deal with all distribution-related issues by time-sensitive strategies. It is important that all essential functional factors are addressed in order to produce efficient results.

(n.d.). Retrieved from www.adidas-group.com.

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Muysinaliyev, A., & Aktamov, S. (2014, 1 6). Supply Chain Management concepts. Journal of Business and Management, 15, 60-66.

Naude, M. J., & Badenhorst-Weiss, J. (n.d.). The Effect of Problem on Supply Chain by wide efficiency. Department of Business Maangement, Unisa.

The Supply Chain Management effect (4 15, 2003).