Partnership speeds up delivery times in South America
Adidas has moved the bulk of its South American inbound goods flow to the terminal in Lazaro Cardenas, where automated gates, an efficient on-dock rail facility and a secure gateway to Mexico City support faster cargo delivery.
Adidas Mexico imports about 90% of its products from Asia, mainly Vietnam, Indonesia, China, Cambodia, and Pakistan.
With plans to deliver 50% of its products to store shelves within 45 days of being manufactured by 2020, Adidas was looking for a supply chain partner capable of meeting these demands.
Faster customs clearance at APM Terminals Lazaro Cardenas, the high level of automation and information from the state-of-the-art terminal operating system, played a key role in Adidas’ decision to move the bulk of its inbound cargo flow to the terminal.
In Mexico, Adidas is the second most popular brand name for athletic and casual footwear and accessories with a 33.6% market share in Q2, 2018.
Its Mexican market is served by a single distribution centre in Mexico City where voice guided picking has replaced paper-based processes to speed up picking and reduce human error.
The company's strategy for 2020 is focused on moving from paper- based and siloed processes to greater digitisation for increased data visibility and improved operational efficiencies.
This has already happened with the opening of Speed Factories, highly automated production facilities that quickly manufacture shoes in small batches to respond to changing consumer desires.
The digital systems at APM Terminals allows Adidas to know exactly when their cargo arrives and where it is, while automated gate and yard facilities allow for faster truck turnaround time to pick up containers for their onward journey to Adidas' distribution centre.
“We are receiving reports on the time our cargo is in the yard and how many hours or minutes are passing until they release it and with that information, we can improve our performance," Roberto Fernández, Senior Inbound Manager, Adidas Mexico said.
Read more: APMT Introduces Drones at its Terminals