Reebok's Supply Chain: A Strategic Journey Begins
Recognizing the Challenge:
In the competitive landscape of athletic apparel, sourcing the right materials and manufacturing processes is critical for success.
The challenge was clear: rising costs of labor and materials, coupled with the need for increased efficiency and flexibility in the supply chain, presented significant barriers to innovation and growth.
Charting a course for transformation
Recruited by Adidas, I was tasked with leading a transformation to the subsidiary sourcing strategy for Reebok and TaylorMade brands. For this project, the majority of my time was focused on Reebok.
With responsibility for managing a $300 million annual sourcing dollars across 24 supplier groups and 12 countries of origin, my role was to drive change, execution, and adherence to a new supplier strategy across three global creation centers in Boston Massachusetts, Carlsbad California, and Barcelona Spain.
The goal was to achieve $25 million in annual savings while ensuring alignment between subsidiary needs and global initiatives.
Overcoming resistance and fostering alignment
Recognizing that the ability to have access to and work effectively with suppliers can make or break a brand's aesthetic and execution of their product vision, implementing transformation in an organization like Reebok wasn't without hurdles.
We encountered resistance from stakeholders entrenched in legacy processes and relationships. To navigate these headwinds, I leveraged my deep understanding of product development and creation needs to strike a delicate balance between global directives and brand requirements.
I cultivated relationships across executive leaders and working teams in design, marketing, material development, product development, pattern, planning, liaison offices, and suppliers.
By fostering collaboration and communication, I pulled teams together and ensured alignment between subsidiary needs and global mandates.
Driving Efficiency Through Strategic Shifts
Algining on the need for a paradigm shift in sourcing strategy, we spearheaded a transition to product-type based allocation. This strategic move aimed to enhance efficiency at supplier factories while balancing the complexity of workload for cohesive product ranges. By aligning production with specific product types, we optimized manufacturing processes and minimized disruptions, resulting in significant gains in production efficiency, creating additional capacity without increasing costs for brands or suppliers.
Balancing Design Vision with Supply Base Limitations:
In navigating the constraints of Reebok's current supply base, I balanced influencing the global strategy with the brand’s development of creative solutions to enable the execution of design visions within these limitations. By collaborating closely with design, development, and suppliers, we identified innovative approaches to leverage existing capabilities and resources effectively.
This strategic alignment ensured that Reebok's design aspirations were realized while optimizing production efficiency and maintaining cost-effectiveness. Through proactive problem-solving and partnership-building, we empowered Reebok to achieve its creative objectives while navigating the complexities of its supply chain landscape.
Redefining Reebok's Success
Our success delivered substantial cost savings and operational enhancements for the larger Adidas group. By restructuring supply platforms and executing an assertive reduction in China, we mitigated the impact of mounting expenses and currency fluctuations.
The successful execution of our sourcing strategy played a pivotal role in Adidas and Reebok’s ability to sustain market share and foster growth amid a fiercely competitive landscape, and set a record for fastest strategy adoption in history between the brands.