Adidas has approached inventory challenges using Infor\u2019s GT Nexus cloud inventory management solution, which provides visibility of raw materials and work-in-progress inventory, as well as tracking of finished goods inventory.\u00a0 Adidas is also experimenting with the use of near field communication (NFC) to establish direct-to-consumer relationships. They intend to expand this tactic across more products as NFC technology becomes entrenched in smartphone technology. Data generated from NFC interactions can provide feedback into the development process for more relevant innovation. [5]<\/p>\n
Adidas is also addressing its global distribution challenge with highly innovative solutions that involve shifting footwear design and manufacturing toward local, high-tech manufacturing centers called \u201cSpeed Factories\u201d. These high-tech factories are intended to employ automation and 3D printing technology to support small-batch production of custom footwear tailored to suit consumers in regions near their production site. The first Speed Factory was opened in Ansbach, Germany in early 2017, and another is expected to open in Atlanta at the end of 2017. [6]<\/p>\n
Speed Factory rubber outsole moulds \u2013 credit: Alastair Philip Wiper [6]<\/strong><\/p>\n The future of factories<\/strong><\/p>\n To support product innovation in these micro-factories, Adidas is experimenting with proprietary 3D visualization software that generates highly accurate digital models of footwear designs. These models are then tested for material performance on the ARAMIS 3D motion-capture and analysis program that NASA and Boeing use for stress-testing. Adidas is trialing this new approach in its Ansbach factory with AM4LDN (\u201cAdidas Made for London\u201d), a tailored pair of trainers built specifically to suit the rainy and early morning conditions of London\u2019s large running-commuter population. In the next few years they intend to launch other regional custom trainers, and to open more Speed Factories to serve the needs of local metro populations. Each new factory is set at a target of 500,000 pairs of sneakers per year, supported by the premise that \u201cpremium sneakers thrive off scarcity\u201d. [7]<\/p>\n AM4LDN Trainers \u2013 credit: Alastair Philip Wiper [6]<\/strong><\/p>\n Moving farther into the future, Adidas intends to push the boundaries of this technology to customize designs at the individual level. Distribution challenges are expected to persist into the longer term, and Adidas intends to address these with a direct, expedited drone technology approach. Adidas\u2019 VP of Technology Innovation Gerd Manz reported that by 2020 he intends for Adidas to deliver 50% of its concept designs to store shelves within only 45 days, while claiming that the new process allows for a theoretical design to consumer lead time of only a single day. [4]<\/p>\n Other\u00a0<\/strong>opportunities<\/b><\/p>\n As Adidas pursues these new technologies, there has been a substantial, though expected, increase in capital investments, and yet the two Speed Factories will address just 1M of the 360M pairs of shoes currently produced in South Asian factories. [7] As a result, Adidas must strike a balance of custom designs against growing sales of their broader footwear portfolio. To balance the innovative process with broader operations, Adidas should look to contain its Speed Factory focus in the near-term to regions of high customer concentration, opening factories in places like London, Tokyo, and New York City. This will allow them to tailor to a large local base with lower capital outlay. Additionally, to push the capabilities of innovation, Adidas should explore other Internet of Things technologies such as sensors to monitor product performance and usage, as well as trackers to support rapid-distribution management.<\/p>\n These high-tech solutions raise the question: How can digital innovation in the supply chain become economically viable at scale against heavy capital and operating expenses of new technology?<\/p>\n Word count: 787<\/p>\n [1] Marketing Week, \u201cAdidas details \u2018revolutionary\u2019 three-pillar strategy as it aims to reclaim lost ground\u201d (19 Jul. 2016), accessed 12 Nov. 2017,\u00a0 https:\/\/www.marketingweek.com\/2016\/07\/19\/adidas-details-revolutionary-three-pillar-strategy-as-it-aims-to-reclaim-lost-ground\/<\/a><\/p>\n [2] Adidas Group, \u201cAdidas with Record Sales and Earnings in 2016\u201d (2017), accessed 12 Nov. 2017, https:\/\/www.adidas-group.com\/en\/media\/news-archive\/press-releases\/2017\/adidas-record-sales-and-earnings-2016\/<\/a><\/p>\n [3] The Economist, \u201cAdidas\u2019s high tech factory brings production back to Germany\u201d (14. Jan 2017), accessed 12 Nov. 2017, https:\/\/www.economist.com\/news\/business\/21714394-making-trainers-robots-and-3d-printers-adidass-high-tech-factory-brings-production-back<\/a><\/p>\n [4] GT Nexus, \u201cAdidas wants to take shoes from idea to store shelf in 45 days\u201d (27 Aug. 2015), accessed 12. Nov. 2017, http:\/\/www.gtnexus.com\/resources\/blog-posts\/adidas-agile-supply-chain<\/a><\/p>\n [5] Infor Blog, \u201cUshering in the age of networked intelligence\u201d (11 Jul. 2017), accessed 12 Nov. 2017, http:\/\/blogs.infor.com\/insights\/2017\/07\/age-of-networked-intelligence.html<\/a><\/p>\n [6] Wired UK, \u201cToo make a new kind of shoe, Adidas had to change everything\u201d (4 Oct. 2017), accessed 12 Nov. 2017, http:\/\/www.wired.co.uk\/article\/adidas-speedfactory-made-for-london-trainers<\/a><\/p>\n [7] Quartz Media, \u201cAdidas can now make specialized shoes for runners in different cities, thanks to robots\u201d (4 Oct. 2017), accessed 12 Nov. 2017, https:\/\/qz.com\/1081511\/adidas-can-now-make-specialized-shoes-for-runners-in-different-cities-thanks-to-robots\/<\/a><\/p>\n![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Outsole.jpg\")
<\/a><\/p>\n<\/a><\/p>\n