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Adidas takes to the sky to overcome supply chain shortage

GERMAN sportswear giant Adidas is looking to air freight to overcome supply chain shortages caused by an unexpected increase in demand for certain products

Adidas takes to the sky to overcome supply chain shortage

GERMAN sportswear giant Adidas is looking to air freight to overcome supply chain shortages caused by an unexpected increase in demand for certain products

19 May 2019 - 19:00

GERMAN sportswear giant Adidas is looking to air freight to overcome supply chain shortages caused by an unexpected increase in demand for certain products.

In its first quarter results, the German multinational said that revenue growth during the first three months of the year was affected by product shortages.



It warned investors that in order to mitigate the issue this year it would utilise extra air freight, which would in turn have an impact on profit margins for the rest of the year. Air freight costs are expected to be 'substantial' during the second and third quarter, reports London's Air Cargo News.



The shortage stems from a strong increase in demand for mid-priced apparel, which the company has not been able to cover in full.



'First and foremost, we are going to increase the use of air freight from the second quarter as part of the mitigating impact of supply chain shortages in the first quarter,' said Adidas chief financial officer Harm Ohlmeyer.



'Please bear in mind it has been too short of a notice to have significant impact on flying in products for the first quarter, it will be more significant in the second quarter and to some degree in the third quarter,' he said.


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