Supply Chain of Adidas

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. DIFFERENT SOURCING RELATIONSHIPS 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 regulations, adidas Group subsidiaries may also source f rom 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 list, and that list can be downloaded 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 domestic 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. * Licensees. Independent companies which manage the design, production and distribution of specific products, unde r 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 * Threat of Substitute Products or Services