A case study of Adidas

1. 00 1
Reshoring
-- a case study ofAdidas
1 1 . 1
Assiya Assanbayeva 856505
Alice Magagna 842819
Ericka Camille Navarro 821993
Giacomo Cardin 836941
Giulia Casella 832386
Giada Turchino 859134
Liwen Yu 861077
Matteo Mazzaro 827087

2. Adidas is a multinational corporation active in the apparel and accessories industry.
Founded in 1924 as Gebrüder Dassler Schuhfabrik in Bavaria, Germany. Later in 1949 registered as «Adidas»
by Adolf Dassler.
In the 1980s the company’s performance got affected by the death of its founder and the rise of a stronger-than-
ever competitor:
This resulted in Adidas offshoring its production to Asia and
converting itself into a «design and marketing» company.
The company creates value through a «global and multi-layered»
supply chain.
Worldwide relationships with suppliers are divided in three
macro-groups as follows:

3. Adidas, in order to minimize production costs, outsources almost 100% of its
production to «independent third-party suppliers», mainly located in Asia. The three
categories of production are footwear, apparel and hardware (ex: bags and balls).

4. Traditional Value Chain
Adidas used to rely on 570
factories around the world,
most of which located in
Asia
MANUFACTURING
COUNTRY
WAREHOUSE
Production was MADE-TO-STOCK
implying huge inventories
TRANSPORTATION
STORE
1
STORE
2
STORE
3
STORE
4
STORE
5
DISTRIBUTION
High transportation
costs and long
delivery time

5. Chain issues
Product quality
Workplace
Transportation
costs
Customer
needs
Labor costs
Chain
Issues

6. A new strategic direction: RESHORING
SPEEDFACTORY
4600m2 factory in
Ansbach, based on
AUTOMATION
Maintain
quality
standards
Boost
workplace
safety
CUSTOMIZATION
(Made-to-order)
Quick
delivery
Slash
warehouse
costs

7. Increase net
income by
15% per year
Bring new
products
faster to the
market
Increase
skilledlabour
demand in
Germany
Export the
new factory
model in the
USA
Main goals

8. New Adidas Supply Chain
Innovative technologies and increasing manufacturing costs
motivate Adidas to change its strategy
INDUSTRY 4.0
AUTOMATION
FLEXIBILITYSPEED
CUSTOMIZATION

9. Robotic Reshoring through “Speed Factories”
allows:
Strict quality standards
Avoid dangerous jobs
Reduce inventory , logistics , and
supply chain costs
Better fit customers’ needs
Reduce manufacturing time

10. References
Adidas Group Annual Report 2015
Chu K., Jervelle E. E., At Western Firms like Adidas, rise of the Machines is fueled by
Higher Asia Wages, The Wall Street Journal, June 9, 2016;
Cruickshunk M., Adidas returns to Germany with Robotic Manufacturing, The
Manufacturer, May 25, 2016;
Meyer D., Why Adidas is turning to Robots in Germany and the US, Fortune, May 25,
2016;
Taino D., Adidas Torna a produrre in Germania, le scarpe saranno cucite dai robot,
Corriere della Sera, May 27, 2016.
The Economist, In the steps of Adidas, February 8, 2007

11. Thank you for your attention