Adidas Final 211f56

Submitted to: Dr. Durgaprasad SMM - IMU

“All Day I Dream About Sports”

Sub: Warehouse & Inventory Management

Group : 1.Amal Mathew 1 2.Amal Mathew 2 3.Geethanraj 4.Goutham 5.Manish. K 6.Raunak Paul 7.Shishanshu 8.Vivek Thakur

Contents • • • • • • • •

Introduction Logistics & Reverse Logistics Packing & Labelling Replenishment & Maintaining stock E-commerce Storage Methods Stores istration Revenue Management

Introduction • Adidas was founded by Adolf Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother Rudolf. • The brothers split up in 1947, with Rudi forming a new firm that he called Ruda – from Rudolf Dassler, later rebranded Puma, and Adi forming a company formally ed as Adidas AG from Adi Dassler on 18 August 1949.

Myth & Tagline • Although it is a popular urban myth that the name is an acronym for “All Day I Dream About Sports.” • The brothers parted ways to form two different companies on their accord, Adidas and Puma. Today it has truly lived up to its tagline “Impossible is Nothing”

Adidas Group • Adidas, a German multinational corporation that design and manufactures sports clothing and accessories. In the Adidas Group, it consists of the Reebok sportswear company, TaylorMade-Adidas company, Golf company (including Ashworth), and Rockport. Adidas is the largest sport-wear manufacturer in and Europe and the second biggest sportswear manufacturer in the world from 2012

Adidas India 1989 - Entered India in license agreement with Bata. • 1996 - t venture with Magnum International Trading Co ltd. • 1998 – Sachin Tendulkar selected as Brand Ambassador for Adidas India. • 1999 - Introduced the cheapest range of budget shoes for Indian market • 2001 – 1st televised ment for India starring Leander Paes & Sachin. • 2005 - Andreas Gellner is new MD, India. • The following year they signed up Indian Player Ravindra Jadeja. Besides currently sponsored cricketers include Rohit Sharma, Suresh Raina, Virat Kohli, Lasith Malinga, Kieron Pollard and Dwayne Bravo. • In the Indian Premier League (IPL), Adidas sponsored the team Mumbai Indians from 2008 to 2014 and Delhi • Currently, from 2015 Season of IPL, Adidas sponsors Royal Challengers Bangalore.

Logistics • Adidas are rapidly become more strength, 69 countries across the globe were involving in producing Adidas goods, such as Africa, Asia, Europe, Australia and New Zealand. • Adidas has rank by the largest sportswear manufacturer in and Europe. Besides that, it also is second biggest sportswear manufacturer in the world. • A logistic networks are dynamic constructions that require a permanent flow of products, funds and information between their divided stages, including the end customer. • In fact, the primary purpose of logistic network is to satisfy customer needs, and in the process, generate profit for itself.

• A typical logistic network may involve a variety a stages, such as component or raw material suppliers (S), manufacturer (M), wholesalers (W), retailers (R) and customers (C). • Every single stage of the logistic network is multiply connected with the others not only through the flow of products, funds and information, but also through a complex mechanism of coordination. • It is designed to generate and trust, which is essential for knowledge transfer. • The lack of coordination leads to a degradation of responsiveness and an increase in cost within the logistic network, which will eventually turn into diminished profitability of the entire network. • Adidas Large Logistics Network (LLN) includes freight forwarding networks, container cycles, transportation networks, production and supply networks.

Adidas Logistics in India • The Indian unit of ’s Adidas AG sells Adidas and Reebok sports shoes and clothes in India through local distributors. • Adidas, which was among the first foreign sports brands to enter India in 1989, operates 760 stores through franchisees • Adidas Group India has consolidated its distribution centres in the country to a single facility of 260,000 sq. ft facility near Delhi, Gurgoan. • Logistics part of it is managed by DHL Supply Chain. • It has a Distribution Warehouse in Ambattur, Chennai., from where the products are distributed to the south indian zone.

Reverse logistics • Reverse logistics is the set of activities that is conducted after the sale of a product, such as servicing, refurbishment and recycling, for the purpose of recapturing value or proper disposal. • It typically involves returning a product to the manufacturer or distributor or sending it along for processing in the final stages of the product's lifecycle. • Reverse logistics is sometimes also called as aftermarket supply chain, aftermarket logistics or retrogistics.

The aftermarket processes that a product can undergo in reverse logistics are numerous and include:  Remanufacturing - rebuilding the product with reused, repaired or new parts  Refurbishment - resale of a returned product that has been repaired or verified to be in good condition  Servicing - a broad category that includes customer service, field service and product returns, such as issuance of return merchandise authorizations  Returns management  Recycling and waste management  Warranty management  Warehouse management

PACKAGING • Packaging is an important activity because it decides the kind of shelf life the product is going to have. Apart from just being attractive, packaging has to also include other important characteristics. The container that goes into the packaging of the product has to be not only attractive to stand out and useful; it has to be also be environment friendly

LABELLING • Labeling is a very important task for manufacturers, because the information contained on the label is a very important determinant of the company’s integrity. When the label says something and the product has something else, it is a poor reflection on the organization’s ability to have a good image in the market. Moreover, the expiry date has to be properly written without causing confusion to the .

IMPORTANCE OF PACKING AND LABELLING 1. 2. 3. 4. 5.

Function Attraction Promotion Facilitates purchase Decision Differentiation

In Adidas • From warehouse to Retail outlet • Segregation and show casing • From Retailer to Consumer

Replenishment • Replenishment is the process by which something is made full or complete again. • Stock replenishment is the process of adding more stock to replace what has been sold. • The purchasers buy a certain quantity of the product, and when it is sold out, replenishment from the supplier takes place. The replenishment rate depends on sales volume as well as consistency of supply. Stock replenishment is the process of adding more stock to replace what has been sold.

How to maintain stock in the store 1. Developing an Inventory Tracking Method i. Choose an inventory monitoring method. ii. Create inventory groups and tags iii. Count your inventory. iv. Record your inventory count.

2. Implementing Your Inventory Tracking Method i. Schedule your inventory updates. ii. Make periodic inventory adjustments 3.Restocking Your Inventory i. Plan your purchasing cycle. ii. Seek opportunities to automate. iii. Adjust your purchasing based on your experience

Inventory Managing Techniques • • • • • •

Set Par Levels First-In First-Out (FIFO) Manage Relationships Regular Auditing Prioritize With ABC Accurate Forecasting

Storage methods • Inventory consists of products awaiting purchase • How the products are stored, it depends on space, costs, spoilage concerns, needs for better efficiency and whether you want to unload your most recent acquisitions or longer-held stock. In particular, when you move inventory -- whether first-in, first-out or last-in, first-out -affects how you value inventory and, thus, your enterprise's profits and taxes. • Storage is an important component in the care and maintenance of shoes and clothing. However, it is a component frequently overlooked until a problem occurs. Proper storage can and does reduce the time and money involved in upkeep and prolongs the life of the material stored

Various storage methods used in Adidas stores Racks • Storage racks afford the and convenience which is lacking with a block-stacking approach. • How you design racks is tied to whether you employ last-in, first-out or first-in, first-out inventory management. • Last-in, first-out operations use drive-in racks or push-back racks that are closed at the upper level. In these racks, employees access stock from only one end. • Drive-through racks allow loading and unloading in multiple places and flow-through racks rely on gravity to push stock from top to bottom; these methods work with first-in, first-out management

Clothing storage • •

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Clothing storage includes hanging as well as flat or folded items Drawer and shelf space have become a modern storage necessity that is sometimes in too short supply. The amount of storage space needed is dependent upon the amount and type of clothing; therefore, space requirements become very individualistic and specialized.

Shelves • A shelf is a flat horizontal plane which is used in business, store, or elsewhere to hold items that are being displayed, stored, or offered for sale. • It is raised off the ground and usually anchored/ed on its shorter length sides by brackets. It can also be held up by columns or pillars. • Most of the shoes items and other accessories which is packed in boxes are mostly kept in the shelves Point-of-Use Storage • Inventory is placed with its s at a station or the store. • Point-of-use means fewer handlers and lower operating costs • There exists little need for a warehouse or central location and the maintenance, security or utilities for such a building. • Your employees can readily obtain inventory through point-of-use storage. Just-in-time and repetitive production operations also employ point-of-use storage.

E-commerce • German sportswear company Adidas AG, which sells Adidas and Reebok brands in India, saw 25 percent of the company's total revenue in India coming from ecommerce business in financial year 2016-17, driven by its renewed global online strategy. • Today e-commerce business s for 25 percent of the total turnover of Adidas India in a matter of 3 years. • The company started selling through e-commerce websites in 2014 and in 2015 created its own franchise run e-commerce portal as it looked to cash in on the booming e-commerce market in India.

• Adidas India at present sell its products through four pure-play e-commerce players including Amazon and Flipkart, through its own e-commerce portal and through the large retail network of its franchised retail stores. • The majority of the e-commerce business for Adidas India still comes from e-commerce players Amazon, Flipkart, Myntra and Jabong. • At present 80 percent of the revenue for Adidas India comes through pure play e-commerce players and the remaining 20 percent through its own e-commerce channel but own e-commerce has grown 100 percent between 2016 and 2017.

• Adidas India is also coming up with a new feature 'Ship from Store' by the end of this year and it will be rolled out at 5 different stores to begin with. By the means of this new feature, the company will map the store inventory online and will enable online customers to buy products through offline stores anywhere in the country.

STORE ISTRATION • Store istration information aid in manufacturing organisations and for that, no manufacturing organisations can ever survive without an effective store istration. • Decisions have to be made as to how to make use of the available resources in order to attain the corporate objectives through the use of store istration.

Components of store istration • Management of premises • floor space management • managing store inventories, cash receipts and displays • customer service and crm • managing promotions, events etc • Managing premises :a) working hrs- duration of business hrs, opening , closing responsibilities b) maintenance and cleanliness store façade and display windows c) managing required permissions and licenses d) time keeping of store staff. • Managing inventory and display.

STORE ISTRATION STORE MANAGER

DY. STORE MANAGER

SALES REPRESENTATIVE (PRODUCT)

SALES REPRESENTATIVE (PRODUCT)

SALES REPRESENTATIVE (PRODUCT)

CASHIER

What is Revenue Management?  Revenue management may be defined as the use of differential pricing based on customer segment, time of use, and product or capacity availability to increase profits  Revenue management helps to predict consumer demand to optimize inventory and price availability in order to maximize revenue growth. The purpose of Revenue Management is not selling a room today at a low price to sell it tomorrow at a higher price. Revenue Management also means selling a room at low price today if you do not expect higher demand.

Exclusive outlet • An exclusive outlet is a store in which manufacturers sell their stock directly to the public, cutting out the middlemen. exclusive outlet sell they sell their latest thing at regular market price • Exclusive brand outlets are vendor centric models • They provide complete fashion solution keeping clothes both fashionable, and functional. • Exclusive store only sells /newly released products (which come at a price.) • A branded outlet includes the exclusivity of a brand and creates a store image to convey its brand image. • Unique promotional strategies are followed.

Drawbacks • An EBO requires high investment. • It is challenging for a retailer to find the right location to set his store. • If he is a new player in the market, he would face issues running the store without prior retail experience, as it deals with one specific brand.

Factory outlets • Factory outlets, the products sold are from one brand only. Manufacturers who sell only their own products at a reduced price. • Factory outlet also sell latest as well as other irregular (surplus or outdated) at discounted price to clear the stock and keep the capital cash-flow rotation. • An outlet store provides a way to get name-brand merchandise for less than exclusive price.

WHY EXCLUSIVE & FACTORY OUTLETS ? • Companies may use both exclusive outlets stores and factory outlets to display and sell their products. The difference between them is the exclusive store usually has new released items or hot items, people who are very ionate this facility attracts them. • Anytime a newer version or some new products of a shoe or other merchandise come out, they mark them down for a short time and then ship them off to the factory outlets to make room in our store for further storage. • In factory outlets a lot of which is still fairly new product but not new enough to be carried in exclusive store so they sell them up to 30-70% discount to maintain capital cash-flow rotation.