sourcing relationships
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 is a Group function which 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, which is a minor portion, 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 from local suppliers in a specific country that are not overseen by Global Operations; these suppliers do require authorisation from the Social and Environmental Affairs team for production. 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
Direct sourcing model
The adidas Group holds direct contractual relationships with its core suppliers who are centrally supervised by Global Operations. Global Operations is a Group function which 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, which is a minor portion, 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 from local suppliers in a specific country that are not overseen by Global Operations; these suppliers do require authorisation from the Social and Environmental Affairs team for production. 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