Supply Chain of Adidas

Topics: Supply chain management, Adidas, Manufacturing Pages: 3 (523 words) Published: March 11, 2013
Supply Chain Structure
The adidas Group has outsourced most of its production. We work with more than 1,200 independent factories from around the world that manufacture our products in 63 countries. The most dominant sourcing locations are: China, India, Indonesia and Vietnam. Our supply chain is global and multi-layered, with many different types of business partners, some of who are directly contracted factories, and others who are not.

In 2011, the top five countries per region by number of supplier sites were: * The Americas: United States, Brazil, Canada, Argentina and Mexico * Asia: China, India, Indonesia, Vietnam and Japan

* EMEA: Germany, Italy, United Kingdom, Turkey and Spain
Our influence in terms of social and environmental compliance is linked to the strength of our partnerships, and is often proportional to the scale and stability of the orders placed with our suppliers.

Direct sourcing model
The adidas Group holds direct contractual relationships with its core suppliers who are centrally supervised by Global Operations. Global Operations manages product development, commercialisation, distribution, and supervision of the manufacture of apparel, footwear and accessories for the adidas, Reebok and TaylorMade-adidas Golf segments. These suppliers produce the predominant share of the total sourcing volume of the Group.

Indirect sourcing model
The other part of our product volume is sourced by agents or is made under licence. Agents place orders with their preferred suppliers. Licensees may either place orders directly with their suppliers or use agents as intermediaries.

Our indirect supply chain complements our direct sourcing by meeting specific requirements that cannot be serviced through Global Operations.

Local market production
In order to quickly seize short-term opportunities in their local markets, to satisfy a niche market requirement, or in some cases to react to certain trade...
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