Adidas supply Chain Management
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Adidas AG is a large German sportswear manufacturer founded in 1924. It has over 86,000 employees and annual revenue of 14.5 billion euros. Adidas outsources most of its production to over 1,200 independent factories in 63 countries, with major sourcing locations in China, India, Indonesia, and Vietnam. It uses both direct sourcing models where it has direct contracts with core suppliers, and indirect models where agents place orders with preferred suppliers or licensees source directly or through agents.
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Adidas supply Chain Management
- 1. Susheel Racherla Roll # 1215 Submitted to: Viswanathan sir
- 2. Company Profile • Adidas AG is a German multinational corporation that design and manufacture sports clothing and accessories. • Industry: Apparel • Founded in 1924 as Gebruder Dassler Schuhfabrik • Founder: Adolf Dassler • Revenue: 14.5 Billion Euros (2012) • Profits: 1671 Million (2011) • Number of Employees: 86824 • Products: Footwear Sportswear Sports-equipment Toiletries It is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.
- 3. Supply Chain Structure • Outsourced most of its production 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 Vietnam. • 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.
- 4. DIFFERENT SOURCING RELATIONSHIPS Direct sourcing model Direct contractual relationships with its core suppliers who are centrally supervised by Global Operations. Global Operations manages Product development Commercialisation Distribution Supervision of the manufacture of apparel Footwear and accessories for the adidas. Reebok and TaylorMade-adidas Golf segments
- 5. Indirect Sourcing Model Sourced by agents or is made under license. Agents place orders with their preferred suppliers. Licensees may either place orders directly with their suppliers or use agents as intermediaries.
- 6. TYPES OF SUPPLIERS • Main suppliers. They supply products, whether for export or domestic market consumption. • Subcontractors. Factories subcontracted by our suppliers to perform manufacturing operations (Main Suppliers are not capable) • Material and other service providers. They supply goods and services to main suppliers. • Licensees. 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.
- 9. Online Orders • Order is placed on the website • Shipping Methods • Standard Shipping/Express Shipping/mi adidas Shipping • Tracking your order • Possible Status are: • Received • Transferred • Order shipped • Returns Received • Order completed
- 10. Returns • Please ship your return package prepaid to the address below within 45 days of receipt • shipped using a service that tracks packages, such as FedEx, UPS, or USPS (ask for services that have tracking options • Please allow a minimum of 14 days for us to receive and process your return.