Modern ERP Solution by Adidas

I. Introduction

 Adidas is a multinational sportswear company that operates in over 160 countries.

 The company sells a wide range of products, including footwear, apparel, and
accessories.
 The company had a revenue of XXX in 2018 and XXX of employees globally.
 In 2018, Adidas announced its plans to implement a modern Enterprise Resource
Planning (ERP) system to support its growth strategy and streamline its supply chain
processes.

II. The Challenge

 Adidas recognized that its existing supply chain processes were complex, manual, and
error-prone, leading to inefficiencies and increased costs. 
 The company faced challenges in managing its inventory levels and meeting customer
demands. 

III. The Solution - Implementing a modern ERP system to:

 Improve and streamline its supply chain operations.

 Integrate with existing softwares
 Improve data visibility and analysis through real-time access to Data globally.
 Increase efficiency
 Reduce costs and increase benefits
 Have better Inventory management
 Enhance customer satisfaction.
IV. Investment Cost

The costs associated with implementing the new ERP system included software acquisition
costs, hardware costs, integration costs, and training costs. The total estimated cost was €1
billion over four years.

V. ROI

Based on the case study of Adidas' implementation of a modern ERP system, the estimated
return on investment (ROI) for the project was €1 billion over ten years.

VI. Risks

The risks associated with the project included implementation delays, data migration issues, and
user adoption issues. These risks were mitigated through proper planning and management.

VII. The Results

 The ERP system integrated all of Adidas' business processes and systems, providing real-
time visibility into their supply chain. This helped to improve inventory management,
order processing, and shipping logistics.
 With access to real-time data, Adidas was able to make more informed decisions and
respond quickly to changing market demands.
 The ERP system streamlined business processes and eliminated redundant tasks, reducing
the time and effort required to complete tasks.
 The new system is highly scalable, allowing Adidas to adapt and grow their business
without limitations.
  The implementation of the ERP system had a significant impact on Adidas' business
operations. It helped to improve their supply chain management, increase efficiency, and
enhance their decision-making capabilities.

VIII. Key Findings and Recommendations

 Adidas conducted a thorough analysis of their existing systems and processes to identify
inefficiencies and areas for improvement. They also identified the key stakeholders who
would be involved in the implementation process, including senior executives, IT
professionals, and end-users.
 Adidas evaluated several ERP vendors based on their product capabilities,
implementation costs, and post-implementation support services. They ultimately
selected SAP as their vendor of choice.
 Adidas worked closely with SAP to configure the ERP system to meet their specific
business needs. This included defining workflows, creating reports, and setting up user
access controls.
 Adidas conducted extensive testing of the new system to ensure that it was functioning
properly and met their business requirements. This included testing for data accuracy,
system performance, and user acceptance.
 Adidas provided training to their employees to ensure that they were proficient in using
the new system. This included training on system functionality, data input, and report
generation.
 Adidas launched the ERP system in stages, starting with a pilot implementation in a
single location. This allowed them to identify any issues and make adjustments before
rolling out the system to all locations worldwide.
References

1. Adidas AG (2018). adidas announces multi-billion euro investment to speed up supply

chain. Retrieved from https://www.adidas-group.com/en/media/news-archive/press-
releases/2018/adidas-announces-multi-billion-euro-investment-speed-supply-chain/
2. Forbes (2019). Adidas' Supply Chain Overhaul Goes Digital. Retrieved from
https://www.forbes.com/sites/oliverwyman/2019/02/07/adidas-supply-chain-overhaul-
goes-digital/?sh=7cfc5f9e3a90
3. Supply Chain Dive (2019). Adidas outlines digital supply chain strategy, unveils new
tech innovations. Retrieved from https://www.supplychaindive.com/news/adidas-
outlines-digital-supply-chain-strategy-unveils-new-tech-innovation/549098/
4. https://www.businesswire.com/news/home/20211121005008/en/adidas-Migrates-SAP-
Environments-to-AWS
5. https://www.theregister.com/2021/11/22/adidas_sap_set_to_leaps/
6. https://insidesap.com/sap-on-aws-cloud-migration-to-digitise-adidas-core-business-
processes/
7. https://news.sap.com/2019/11/sap-fiori-makers-adidas-use-cases-ux/