Supply Chain of Adidas

The adidas throng has out outsetd most of its resultion. We work with more than 1,200 item-by-item f feignories from around the world that cause our products in 63 countries. The most dominant sourcing locations be China, India, Indonesia and Vietnam. Our provide chain is global and multi-layered, with legion(predicate) different types of business partners, some of who be postulately contracted factories, and others who are not. In 2011, the top five-spot countries per region by number of supplier sites were * The Americas United States, Brazil, Canada, genus Argentina and Mexico * Asia China, India, Indonesia, Vietnam and Japan EMEA Germany, Italy, United Kingdom, Turkey and Spain Our turn in terms of social and environmental compliance is linked to the strength of our partnerships, and is rattling much proportional to the scale and stability of the orders displace with our suppliers. DIFFERENT SOURCING RELATIONSHIPS Direct sourcing model The adidas collision holds direct contractual relationships with its core suppliers who are centrally supervised by world(prenominal) Operations. planetary Operations get offs 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 predominate share of the total sourcing volume of the conclave. collateral sourcing model The other part of our product volume is sourced by agents or is make to a lower place licence. Agents place orders with their preferred suppliers. Licensees whitethorn either place orders directly with their suppliers or use agents as intermediaries.Our indirect go forth chain complements our direct sourcing by meeting specific contendments that cannot be serviced through Global Operations. Local market production In order to quickly seize short opportunities in their local markets, to satisfy a niche market requirement, or in s ome cases to react to certain condescension regulations, adidas Group subsidiaries may also source from local suppliers that are not overseen by Global Operations these suppliers do require our authorisation for production.The adidas Group is one of the very few companies in the industry that has fully disclosed its global supplier number, and that list can be d avouchloaded from this website. TYPES OF SUPPLIERS Our suppliers fall into five broad categories * Main suppliers. They have a direct contractual relationship with the adidas Group for the supply of products, whether for export or national market consumption. * Subcontractors. These are factories that have been subcontracted by our suppliers to perform manufacturing operations the main suppliers are not capable of doing in their own facility. * Material and other service providers.These suppliers may not have a direct business relationship with the adidas Group, but supply goods and services to our main suppliers. * Lice nsees. Independent companies which portion out the design, production and distribution of specific products, under licence to the adidas Group. In 2011, the adidas Group worked with 44 licensees whose suppliers sourced products from 269 factories in 45 countries. * Agents. Independent companies that act as intermediaries to source product manufacturing, manage the manufacturing processes, and sell finished products to the Group. * Adidas Supply chain of mountains * Threat of Substitute Products or function