Adidas Supply Chain Analysis

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Interviewees are asked to rank service innovation dimensions for each process in the order fulfilment and outbound logistics operation on a scale of 1-5 with 1 is the lowest capability and 5 is highest capability. The average scores are the arithmetic average of scores in dimensions of service innovation (figure 22-a) or five processes of order fulfilment and outbound logistics (figure 22-b).
From the figure 22-a, it can be seen that adidas is relatively diverse in different dimensions of service innovation capabilities framework. Particularly, customer orientation and employee collaboration are scored highly with average figures of 4.02 and 4.03, respectively (Figure 23). Dimension with score higher than 4 is considered as possessing strong
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Specifically, order placement is the strongest area of service innovation capability with highest average score of 3.73. Return process, system processing and distribution center (“DC”) processing ranked in the next three positions with average scores of 3.54, 3.45 and 3.36, respectively. Carrier delivering process is the area with the lowest service innovation scoring of 3.08. In general, all processes have average scores of more than 3 but less than 4, which indicates that adidas has potential for strong service innovation capabilities along the order fulfilment and outbound logistics supply chain process but still faces with considerable challenges to achieve the full potential. Areas that need special attention from adidas management include carrier delivering, DC processing and system processing. As for order placement and return process, adidas should put a little more effort on each dimensions of service innovation to obtain better scores. In the next section, the research will go at a greater details on the service innovation capabilities for each process and explain the reasons for any strengths and weaknesses.
In this section, the research will take a closer look at each individual order fulfilment and outbound logistics supply chain process by assess dimension by dimension of service innovation capabilities framework. to shed lights over which dimension of which process is receiving high or low score and more importantly, what are the roots behind all these

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