Adidas boosts supply chain efficiency in China with automated logistics hub

Global sportswear brand Adidas has teamed up with Chinese logistics startup Geek+ to open a new automated distribution centre in Suzhou, China to boost its operational efficiency after what one expert described as a “catastrophic” FY2022 sales performance in the region.

Isatou Ndure September 22 2023

Geek+ claims the 139,000sqm fully automated warehousing and distribution centre in partnership with adidas sets a new benchmark in the world of warehousing logistics.

It boasts remarkable speed and flexibility and is said to have the capacity to process over one million pieces per day and store up to 10 million pieces of apparel and footwear.

Geek+ also points out its logistics robot solution tackles the logistic and operational challenges faced by Adidas, including customisations for item location detection. This is expected to significantly improve operational safety, and align with the requirements of human-robot collaboration.

Geek+’s solution introduced intelligent scheduling logic to optimise robot handling efficiency, resulting in overall operational improvements and is said to offer an improved work experience for the centre’s employees, thus contributing to enhanced worker retention.

Adidas global chief financial officer Harm Ohlmeyer explains: "With the establishment of this centre, Adidas aims to ramp up supply chain responsiveness, boost operational efficiency, and elevate the consumer experience. We envision these logistics advancements to provide valuable insights for Adidas' global expansion.”

Yong Zheng, founder and CEO of Geek+ adds " Geek+ is delighted to support Adidas in advancing warehouse logistics flexibility, ultimately enhancing the consumer experience.

“Adidas and Geek+ have a longstanding and robust collaborative foundation and this inauguration marks a significant milestone in the partnership between the two and stands as a crucial innovation within the industry.”

Adidas reported disappointing full-year 2022 results in March on the back of a “catastrophic” performance in China, in which revenues declined 36% because of a “challenging market environment, company-specific challenges as well as significant inventory takebacks.”

At the time, the head of apparel at Global Data, Chloe Collins suggested Adidas would continue to struggle in the region unless it increased its appeal with local consumers.

In April 2022, Geek+ partnered with the Chinese solution provider Engero to create the world’s first fully automated intelligent cold chain port warehouse in the port of Tianjin China to bring improvements in storage, handling efficiency, and handling accuracy.

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