Models of Crime Prevention: Their application

Models of horror Prevention Their applicationDue to the increasing complexity brought about by modernisation, overpopulation, urbanisation, and globalisation, horror ginmill has required a much urgent stance not only from authorities but besides from communities, schools, citizens, families, and non-government institutions. While the cake of umbrage has been unanimously agreed upon, the best bearing to go about it is still under debate. There do been several models of hatred prevention which criminologists and law enforcement experts crap introduced but until directly, there remains no clear best model yet. Some of the major offence prevention programmes ar situational or social in nature but so-c solelyed cross snugglees or whole of government approaches have to a fault gained popularity, especi completelyy in Australia. In influence to develop a clear appreciation for the many-faceted nature of hatred prevention as practiced today, it is necessary to define it clearly and analyse the different models utilise locally and overseas and examine how each model has f argond when mathematical function to actual villainy prevention programmes. This essay discusses offense prevention, its models, and its application in the real-world setting.Defining Crime PreventionCrime prevention in its simplest definition is the change of disapprovering annoyance, criminals, and reducing levels of victimisation. White and Perrone (2005) view crime prevention as the creation and implementation of proactive programmes and strategies which are designed to prevent crime and address the aid of crime (p. 15). A more comprehensive definition is advanced by Van Dijk and De Ward (1991) to treat crime prevention as the total of all private initiatives and state policies, aimed at the reduction of damage caused by acts defined as criminal by the State (p. 415). The common thread of these definitions is the suggestion that crime prevention is not the sole responsib ility of law enforcement and police, but rather a collective obligation of different sectors in society in government and in communities. Otherwise stated, crime prevention is a joint effort of various levels of society to work toward strategies that prevent crime occurrence.Rationale Behind Crime PreventionWhile conceptions of crime and judge date back to antiquity, the enormity of concern attributed toward crime prevention emerged circa late 1980s and early 1990s. White and Perrone (2005) enumerated trio major reasons why crime prevention has taken an unprecedented turn during this period economic, operational, and community initiative.Economic. Crime prevention became an important economic concern because crime definitely pays, to use the popular catchphrase in huge amounts of fiscal visions. The cost of crime is increasing, and according to 2008 figures from the Australian Institute of Criminology (AIC), crime consumes almost 4 percent of the countrys GDP which is equival ent to $36 billion (Rollings, 2008). Crime-related expenditures include policing, corrections, the security persistence, and the criminal justice system as well as hidden be such as medical costs, compensation, and loss of productivity of victims. To curb this gargantuan cost, crime reduction is considered a feasible alternative.Operational imperatives of policing. Considering the potive cost of crime, it became officeholder upon police and law enforcement agencies to recruit and enlist the assistance of citizens in an effort to arrest the escalating costs of crime. Policing required the collaboration of the law enforcement structure with citizens in the so-cal take fight against crime (Martin Perrone, 2005).Demands of the community. As crime rates augmentd with demographic changes attributed to the sprawl of urbanisation and migration, citizens have learned to recognise that a singular lawsuit by law enforcement to prevent crime would not do hence, citizens have assemble d themselves into crime prevention groups based in their respective communities to assist in crime prevention. As citizens became more vulnerable to crime, so did their resolve to empower themselves to stop victimisation.While one or a combination of all factors may have contributed to the emersion of crime prevention theory and application in the modern world, another theory is the growing concern for human rights and individual freedoms have led to an influence passing toward non-punishment forms of crime prevention. Sutton and Cherney (2002) emphasised that crime prevention is reflective of societys desire to handle crime by using processes other than those that are eliminative alternatively of punitive action, restorative means are advanced in the campaign for crime deterrence.Models of Crime PreventionThroughout its history, differing models of crime prevention have been used by law enforcement and criminologists around the world to curb crime and reduce victimisation. The ma jor conceptual models of crime prevention include situation, social, and developmental. Crime prevention has also been classified into primary, secondary, and tertiary forms.Situational crime prevention. The situational theory of crime prevention suggests that the best instruction to stop criminals is to design physical space and environment in a manner that will induct the commission of crime harder and increase the likelihood of apprehending criminals. The idea is to change criminals perceptions of the rewards of crime by making the situation harder and much dangerier for them. The situational concept of crime prevention was developed initially in the 1980s by criminologist Ronald Clarke. Clarke (1992) suggested that the most effective way to prevent crime is to implement strategies that create conditions which pay off it harder for criminals to seat crime. Thus, as an intervention model, situational crime prevention requires the proper identification of routines, factors, an d patterns associated with criminal activity. Clarke Cornish (2003) presented five types of techniques which criminology practitioners should consider when using the situational model 1) increasing effort required to commit crimes 2) increasing risks of committing crimes 3) reducing rewards out of crimes 4) reducing conditions that provoke crime and 5) re locomote excuses for committing crimes (as cited in Homel, 2005, p. 132).Social crime prevention. The theory of social crime prevention aims to prevent offending by changing not the physical environment but the social environment. Social prevention intends to create social conditions that will deter potential or actual offenders from doing crimes. Hence, strategies associated with social crime prevention include empowering communities with resources and programmes that create a diversion from criminal behaviour. As an intervention model, social prevention focuses on youth and children, and programmes liked to this model including employment programmes, skills building activities, leisure programmes, youth drop-in centres, and other activities that increase productive behaviour.Developmental crime prevention. Developmental crime prevention as a theory strives to link puerility development with later delinquency. Researchers that have conducted prevention experiments were able to establish that factors surrounding early childhood are signifi gaget precursors to delinquent behaviour. These risks to delinquency include poor parenting, socially disruptive behaviour, and cognitive deficits (Sutton Cherney, 2002). Poor parenting could involve factors such as neglect, conflict in the home, deviant behaviour of parents, and early experience of family disruption (Homel, 2005). Among the developmental intervention strategies used courses related to proper parenting and other school-based measures.Crime Prevention ProgrammesThe theoretical concepts of crime prevention discussed earlier have generated various interventi on strategies all aimed to preventing crime.Situational prevention. Situational prevention strategies aim at designing the physical environment in enact to make it slight desirable and riskier for individuals to commit crime. Advocates of situational prevention strategies are more likely than advocates of other models to claim empirical effectiveness in preventing crime. Situational prevention involves among others, identifying cities that are crime hotspots, the use of surveillance cameras or CCTV cameras, screens, reducing cash-handling among banks to curb robbery, the use of boom gates to reduce car theft, and the use of undergrounds inroads to prevent vandalism and graffiti (OMalley, 1997). iodine of the strongest critiques against situational prevention is that the approach is inherently biases in favour of the rich and against the poor. Moreover, opponents claim that the opportunity reduction strategy gives only cosmetic remedies and that crime involves economic and pagan aspects associated with capitalism and mass consumerist ideology (OMalley, 1997).Social prevention. In lieu of situational prevention techniques, some criminologists have advocated social prevention instead because of the view that crime as a social problem is deeply ingrained inwardly the economic and cultural structures in society. One of the most prominent social prevention strategies utilize was the Bonnemaison programme of Epinay, France, named after the towns mayor, Monsieur Gilbert Bonnemaison, MP (Cornish, 1995). This programme was implemented in France during a period of turmoil characterised by spunky levels of unemployment, ethnic rioting, and violence. The French fundamental government collaborated with the local governments to develop diversionary programmes for the youth and made it a national priority. Some of these crime prevention programmes inspired by the Bonnemaison strategy include (Cornish, 1995)education of young peoplere-training of those who failed to co pe in the education systembetter housing employment adequate health serviceaid to victims of crime better conditions for immigrants and ethnic minority groupsdrug abuse treatmentafter school activities for the youngprovision of youth, cultural, training and recreation centres in each council area. (p. 188) other overseas example of successful social prevention strategies include the so-called head start projects pioneered in the United States since the 1960s. These programmes focused on social justice as a crime deterrent by empowering poor and disadvantaged families with educational and other family enrichment programmes (Cornish, 1995). To date, several community-based and community development strategies of crime prevention have been modelled after the social prevention concept.Hybrid or whole of government approaches. Instead of focusing solely on just one crime prevention strategy, several programmes have combined several strategies and developed so-called hybrid programmes or whole of government approaches as it is known in Australia (Homel, 2005). An example of this customised approach toward crime prevention is the Safety Action formulates implemented in Surfers Paradise and Queensland during the middle of the 90s. Other projects that were national in scale include Safer Australia and subsequently, the National moveAgainst Violence and Crime (NCAVAC) geared at the promotion of community-based crime prevention by dint of coordination and operational partner displaces with local and central government (Homel, 2005).ConclusionCrime impacts boilers suit quality of heart because it influences ones actions, where one lives, how one travels, people one associates with, and others. The major conceptual models of crime prevention are the situational, social, and developmental crime prevention strategies. However, there has been increasing acceptance that crime is more complex in nature so that not one single strategy is effective in deterring crime. The em ergence of hybrid approaches toward crime addresses both situational and social factors, and is considered to be more appropriate for the complexity of the 21st century. grant way A complex functionSupply management A complex function1. INTRODUCTIONSupply management is a complex function thats critical to business enterprise success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies entire add drawstrings. The strategic contribution of sum up management is measured not only in savings made, but also in increased dish outholder value (Niezen, Weller Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their emerge chain. The purpose of this report is to compare and evaluate the make out chain management practices of Nike Adidas.2. CORPORATE PROFILE2.1 Nike Corporate ProfileBased in Beaverton, Oregon, and employing approximately 29,000 people world-wide, Nike Inc. is the worlds leading designer and marketer of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities (Comtex, 2002 Nikebiz, 2007a). Nike holds a 32 percent worldwide market share, a $20 billion market cap (Koch, 2004), has 40,000 stock-keeping units of goods (Mongelluzzo, 2002) and sells over 120,000 products in four cycles per year (Koch, 2004).2.2. Adidas Corporate ProfileAdidas is a leading lyingr of sportswear and sports equipment, offering its products primarily through four brands Adidas, TaylorMade-Adidas Golf, Maxfli and Reebok (Datamonitor, 2007) The Adidas group and its 150+ subsidiaries are directed from the headquarters in Herzogenaurach, Germany, and employ 26,376 people (Adidas, 2007)The Adidas product make includes more than 20,000 items, with thousands of product variations. To keep up with market convey, the company changes its product range twice a year more often if new technologies are available and in demand (Webex, 2004).3. REPORT SCOPENike and Adidas are global players across a number of product categories. Supply chain management practices vary as the different products across the portfolios work towards different objectives. Due to the wide scope of product categories, the following report limits itself to analyzing the supply chain management practices of Nike and Adidas indoors the context of the global footwear market.Key supply chain processes under analysis includemanufacturing flow managementprovider kinship management,demand management,order fulfillment guest serve and relationship management(Lambert, 2007).4. MANUFACTURING FLOW MANAGEMENT4.1 Outsourcing as procurement strategyThe international sports shoe industry is typified by the wide scale vertical dis consolidation of functions and high levels of subcontracting activity. Multinationals such as Nike and Adidas no longer manufacture products, relying str ongly on outsourcing all business in low-cost overseas labor markets, invariably resulting in the majority being manufactured in Asia. Outsourcing practices allow Nike and Adidas to focus on their core competencies marketing, design and product innovation, areas in which they can best achieve a competitive advantage (Anderson, 2005). The trade-off to outsourcing to offshore manufacturers is that companies face certainly longer lead- convictions for delivery typically taking sextuplet to eleven weeks to receive products from Asia (Sahling, 2007). Efficiencies gained in terms of reduced wages are countered by the increased difficulty of monitoring the product and the actual working conditions in the factories (Van Dusen, 1998). Also, Nike Adidas issue capabilities are governed by the economic state of emerging markets as countries prosper, there is a remove to find new, low cost opportunities. Conversely, production could also be affected by external factors such as natural dis asters or political instability.4.1.1 Nike ApproachAsia provides the majority of Nikes manufacturing and distribution, delivering to more than 80 destinations throughout the world, which now accounts for 65% of U.S. imports (Mongelluzzo, 2002). China now supplies 40% of Nikes U.S. consumption, increasing its reliance on southern Chinese ports (such as the Yantian port) instead of the port of Hong Kong (Field, 2003a). Yantian currently handles about 20% of Nikes volume from China, and approximately 10% is shipped from the port of Qingdao (Field, 2003a). The Yantian port has increased efficiency collect to the close proximity to the Nike pulverisation base, and quicker transits to the States (Field, 2003a).Nike places more importance on choosing the right local partners, not just the right ports. Nike doesnt own any of its facilities, and local partners make important logistics decisions (Field, 2003a). To manage relationships, Nike has both a global and regional vendor management t eam as output volume increases, Nike dont expand the number of suppliers, but increase the volume of business they do with each supplier (Field, 2003a).The Nike production system can be stratified into three classes developed partners, volume producers and developing sources (Donaghu Barff, 1990). Although Nike has developed different levels of supplier relationships with each class the production network is commonly classified as a virtual effort where independent firms work together based on shared values and a common way of doing business to exploit a business opportunity through joint manufacturing (Pfohl Buse, 2000).4.1.2 Adidas ApproachAdidas has also been referred to as a virtual enterprise however, it may be better characterized as a strategic network because its supply chain utilizes three different types of suppliers The first group have a direct contractual business relationship with Adidas, whilst the second group, subcontractors, are companies that have been subcont racted by their suppliers and do not have a direct business relationship with Adidas and thee third group includes local sourcing companies, which source and manufacture products for local markets, rather than group-wide distribution (Adidas, 2002). Further, Adidas provides all of their suppliers with detailed technical and design specifications for the production and delivery of products, with rigid quality control enforcement and inspections (Pfohl Buse, 2000), rather than adopting co-operation techniques and joint manufacturing ideals.4.2 Lean Manufacturing Principles Lead Time ReductionAccording to Gernaat (2006), the fashion (footwear) market characterized by short product life cycle, high variety, high demand volatility, low demand predictability, low volumes and high level of impulse purchase. Therefore short lead clock times are exceedingly important functions of responsive, reactive and conciliative supply chains (Gernaat, 2006). Global sourcing creates longer lead ti mes, and more complex supply chains. Nike and Adidas have instituted lean manufacturing principles to rationalize the supply chain processes and decrease costs. However, lean manufacturing approaches leave the companies more vulnerable to potential stock outs and there is increased reliance upon other supply chain elements trail in sync and without interruption.4.2.1 Nike ApproachNike utilizes several subcontracting arrangements that allow the companya high degree of flexibility in dynamic and fluid marketsa flexible demand-driven production systemto shift production between factories and countries opening plants and signing contracts that potentially only last a year and itto utilize capacity subcontracting methods to decent variable market demands(Donaghu Barff, 1990).Nike is upgrading its supply chain to try to drive the manufacturing cycle for a sneaker down from nine months to six to match its lead time to retail merchants ordering schedule. Nike aims to manufacture its sne akers to order rather than three months in advance (Donaghu Barff, 1990). Nikes new supply chain, using just-in-time management already active in the US and Europe enables shipment of products to customers faster. Select retailers receive delivery within days rather than months cutting costs and improving profits by freeing up inventory and increasing sales (Herzog, 2003)4.2.2 Adidas ApproachPrior to 2002, Adidas operations were traditional batch and queue, and stored in warehouses until the order was processed. As part of its overhaul of its supply chain, Adidas strain to significantly reduce footwear lead times by introducing lean manufacturing principles across its supplier network. The time-to-market initiative involved a coordinated, global effort on behalf of Adidas and its consultants which included training suppliers, technology improvements in supply chain planning and a focus on internal design processes (Productivity Press, 2006). Efficient implementation of lean man ufacturing principles also removed non-value-adding procedures, improved labeling and special handling to reduce lead time (Datamonitor, 2007). The reduction in lead time also lead to a 33% increase in correct product choice, increased accuracy in ordering and in some cases, resulted in bigger orders as customers were less risk averse and displayed increased commitment (Productivity Press, 2006).4.3 Centralisation 3rd Party Logistics Specialisation4.3.1 Nike ApproachThe theme of Nikes sneaker supply chain is centralisation. All product design, factory contracting and delivery is planned and co-coordinated from Beaverton, Oregon (Koch, 2004). Nike runs a single instance of conk out R/3 (a single planning engine), and centralised demand management to work with outsourced suppliers (MSI, 2004). Nike is currently pursuing a total information integration strategy integrating ERP (enterprise resource planning), supply chain planning and CRM package system onto a single platform share d by Nike operations in noneth the States, as well as Europe, the Middle East and Africa. Initial results are promising improved financial visibility, cash flow management, revenue forecasting, and taking advantage of shifting exchange rates through the re-allocation of Nikes cash resources (Koch, 2004).Nikes key supply chain strategy is through achieving up-to-date shipment info that can be used to make the supply chain more efficient, with transit time being the deciding factor over other considerations (Mongelluzzo, 2002). Nike has pared its number of logistics providers from five to two. Nikes two third-party logistics providers specialise in data management APL Logistics handles eastbound shipments to the U.S., Canada and Latin America and Maersk Logistics manages U.S. outbound shipments (Mongelluzzo, 2002). Nike requires transportation vendors to provideGeographic coverage of U.S., Canada and Latin AmericaCarrier specialisationMultiple ports of entryMultiple consortiaExpedi ted air and courier servicesCargo securityEDI interfaceData and documentation management(Mongeluzzo, 2002).For 60 percent of cargo from Asia, Nike controls the transportation move from Asian factories directly to the distribution centres of its U.S. retailer customers. The company moves the rest through its own U.S. distribution centres, where they are stored until a retailer needs them (Field, 2003b). Although the shipper and its logistics partners manage the supply chain, decisions on how much to ship and when to ship it are made in response to customer needs Demand drives the logistics strategy (Mongelluzzo, 2002).4.3.2 Adidas ApproachTraditionally Adidas has operated in a decentralized manner, with separate direct units independently choosing software program that suited their internal preferences and geography (Tibco, 2007). Since 2002, Adidas has begun implementing common processes to divine service establish a global direction and help regain its competitive advantage. Ti bco software was implemented to streamline and automate its business operations, improving flexibility, scalability and visibility across the enterprise helping to reduce product delivery times (Tibco, 2007).Similarly, Adidas inadequate paper-based warehouse and distribution systems were replaced with unique WMS and RF software to halve distribution costs, reduce labour costs and improve accuracy and efficiency through automated cross-checking of all orders (CIPA, 2004). John Hamilton, the Development Manager for Supply Chain Applications noted that We use third-party manufacturing so we are involved with a lot of different partners, from people who manufacture our product, to people who manufacture our raw materials, to the distributors that sell our product throughout the world We had a bit of a lag in our ability to see downstream demand Its hard to see the end customers demand because we are working through a lot of different subsidiaries. (i2, 2004) i2 solutions replaced the h ome-grown planning system, to ensure that Adidas continued to happen upon the needs of customers, suppliers, and consumers enabling the company to reduce order confirmation times and to get products to market faster through its ability to improve asset utilization, factory fill rates, and to plan at multiple lead times (ibid).Adidas moved further toward a centralization strategy as it implemented logistics software tire AFS to facilitate process and system standardization worldwide, providing a solution that supported a consolidated global focus. Adidas chose the software because AFS is specific to the apparel and footwear industry with its emphasis on seasonal fluctuation, proliferation of design variations and product characteristics, multiple distribution channels and customer-service requirements, and outsourced manufacturing (SAP, 2002). Adidas consolidated the distribution system into UPS, a single streamlined network, with automated inventory and fulfillment systems that r apidly scaled its services and add enhancements as required (UPS, 2005)4.4 Supplier Relationship focal point4.4.1 Nike ApproachAthletic footwear producers use similar techniques to promote stability and trust in their relationships with subcontractors Nike develops and produces all high-end products with exclusive partners, while its volume producers manufacture more standardized footwear that experience larger fluctuations in demand (Donaghu Barff, 1990). Nikes strategies for alliance involveSeeding Nike expatriate technicians into factories producing Nike footwear to function as a liaison between head office and RD to ensure beam product development processes and maintain product control.Encouraging partners to participate in joint product development activities, sharing responsibility for the development of new footwearStabilize production and reducing demand variance with key factories partners by placing monthly orders with partners that exclusively produce Nike products(Don aghu Barff, 1990)Nike are establishing longer-term contracts with key suppliers, operating more as partners (ibid), fostering strategic alliances and creating value-add capabilities within the supply chain.4.4.2 Adidas ApproachAdidas current approach to supplier relationship management is consolidation in 2001 it reduced the manufacturing base by over 25% with a medium term goal of reducing the suppler base by 40% (Adidas, 2002). The aim is to deepen relationships and therefore reliability, also to increase Adidas influence and bargaining power with suppliers. Adidas focus is on building their suppliers own capacity and internal management systems in health and safety and human resource management, seeking to develop sustainable compliance processes and to drive self-enforcement (Anderson, 2005)5. DEMAND MANAGEMENT5.1 Forecasting Order FulfillmentGernaat (2006) argues that accurate forecasting is highly difficult in the fashion industry, as it is characterized by short PLCs, volat ile demand and high variety.Wide product lines are challenged by an increasing individualization of demand, which Nike and Adidas combat by creating an increasing number of variants (Berger Piller, 2003). This makes forecasting and planning for the companies increasingly difficult which has the potential to result in high overstocks, increased supply chain complexity and the need to provide significant markdowns to get rid of surplus stock (ibid). Forecast accuracy can be increased through flexible supply chains with shorter lead times. However Gernaat (2006) also points to the use of Point Of Sale data to adjust forecasts and quick response programs to respond accordingly as a way of combating inaccuracies.Nikes forecasting is largely based on its Futures program, where retailers must order up to 80% of their merchandise inventory 6 months in advance in order to get substantial discounts and guaranteed delivery times (Porter, Harris Yeung, 2002). The futures ordering program allo ws Nike to minimize the amount of inventory held, purchasing costs, the time necessary to fill customer orders, and the risk of non-delivery (Nikebiz, 2007b). Nike gained a significant competitive advantage in the 90s as retailers were eager to secure discounts and guaranteed delivery times.Nike now faces pressure from customers and rivals because retailers are more reluctant to commit to ordering 6 months in advance as consumers tastes are increasingly fickle and smaller, more agile rivals are willing and able to work within shorter order cycles. Nike also is behind its rivals in direct point-of-sale (POS) integration with retailers supply chain experts believe that actual store data, rather than software algorithms, are the best predictors of demand, but Nikes SAP system cannot yet accept POS data (Koch, 2004).Adidas recently launched World Class Supply Chain initiative appears to be moving away from a forecast-based supply chain to a demand-driven supply chain. The company has re -engineered its supply chain to customize its business to five differentiated and dynamic business models which target consumer needs (Adidas, 2006). The initiative covers the whole concept-to-shelf process and incorporates marketing, sales and operations functionsBrand Model delivers Adidas brand statement products, supported by comprehensive customer service, marketing, retail and supply chain capabilities (launched 2006)Evergreen Model short lead times and never-out-of-stock capabilities for Adidas most commercial and long life cycle product lines (launched 2006). riotous Response model seizes additional market opportunities with a 3-6 month concept-to-shelf process (launched 2007)Global/regional model creates regional adaptations of global concepts to reflect consumer needs in regional markets (launched 2007)2008 model aims to reduce the percentage of products turned around with 18 months lead time to only 25%.(Adidas, 2006)5.2 Customer Service Relationship ManagementThe s uccess of global supply chains is the value they add to their ultimate customers in terms of the cost/price and the related services they provide (Coyle, Bardi Langley, 2003). IT can play a significant role in facilitating customer service that provides the opportunity to remain competitive, improve differential advantage and finally, gain market share (ibid). Advances in IT allow sharing real-time information between supply chain partners, which facilitates better inventory management which increases customer service and value. Sharing data also strengthens relationships between supplier and customer, as there is a development on trust and reliability.However, it is important to note that increased reliance on IT and software can potentially negatively affect positive customer service outcomes. Nike and Adidas have both been exposed to the negative consequences Nike lost $100million in revenue due to software bugs in its supply planning software in 2001 (Interestingly this is the i2 solutions supply chain planning software that Adidas has taken on board), and Adidas first attempt at implementing WMS software resulted in massive market share losses in 1996 when the system failed to work and could not process orders (Supply Chain Digest, 2006).5.2.1 Mass CustomisationPillar et al (2004) see information technology, along with flexible manufacturing practices as facilitators of mass customization and its promise to deliver goods and services that meet individual customer needs with near mass production efficiency. Adidas and Nikes approach to mass customization provides a good example of the trade off between the increased complexity of mass customization and supply chain economies of scale. The mi Adidas concept offers a full range of shoe customization options in regard to fit, functionality and aesthetic design. In contrast, Nikes NikeId program, in line with its highly centralized approach, limits customer integration and feedback by only offering the differ ent colour choices of a shoes components (Piller, Moeslein Stotko, 2004). Relative to Nike, the degree of product, process and information complexity is much higher for Adidas and then incurring increased supply chain costs. However the costs are offset by higher premiums charged up to 50% compared to the customized shoes of Nike (between 5% and 10%) (ibid).Adidas develops a learning relationship with consumers through the brand interaction, increasing the revenue from each transaction because as well as the actual product benefits, the simplified purchasing decision process entices repeat purchase, thus creating loyalty (Piller, Moeslein Stotko, 2004) and deepening customer relationships. The mass consumption concept can also help generate better customer service and relationship management, as Adidas gains sticky knowledge about its consumers valuable market research which could help inform more efficient planning for new products for the mass market segment (ibid).6. KEY FAC TOR ANALYSISCoyle, Bardi Langley (2003) argue that the key factors of successful supply chain management include inventory, cost, information, and customer service and collaboration relationships.Based on the above inventory management, financial measurement and performance measures, Nikes tightly controlled, centralized supply chain management practices appear to have the advantage over Adidas in fact, Nike was recognized as being one of the top 25 companies that exhibit superior supply chain capabilities and performance (AMR, 2007).Such performance indicators strongly suggest that Adidas has a continued need to improve operating efficiency, inventory management and also seek to deploy assets in more profitable avenues (Datamonitor, 2007).Adidas relatively poor financial performance (compared to industry leader Nike) was recorded across the 2002-2006 period, during which the company began to implement substantial changes across its supply chain management processes. Adidas has sig nificantly centralized and automated elements of its supply chain, boosting efficiency and effectiveness of the processes by reducing errors and increasing productivity. At the like time it seems better equipped to accommodate consumers individualized demands through the more sophisticated mass customization practices, and increased collaborative relationships. Although Nike has strong collaborative relationships across its supply chain, its highly centralized processes seems less flexible in terms of demand management and customization which could affect its future competitive advantage.ReferencesAdidas, What We Do (2007)(http//www.adidas-group.com/en/overview/general_information/default.asp) Accessed 05/09/07Adidas, 2002 Annual compensate (2002) (http//www.adidas-group.com/en/investor/reports/annually/downloads/as_ar_2002.pdf) Accessed 05/09/07Anderson, W (2005) Speech http//autoweb.ccpit.org/edit/UploadFile/20051017112649215.doc. Accessed 05/09/07Berger, C. 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