Sourcing Strategy of ADIDAS (………..

Impossible is nothing…)

Index • • • • • History Main features Products Distribution process Sourcing strategy .

Herzogenaurach.42. • • • • • • • • . sportswear. sports goods. fashion accessories & toiletries Revenue .Adolf Dassler Headquarters . Germany Products .Market products in more than 80 countries Outsourcing manufacturing facilities in over 69 countries Facts:.Company Profile • • • • • Industry – Clothing and Consumer goods manufacture Founded .99 billion (F Y 2010) Operating income.€ 894 million (F Y 2010) Profit.€ 567 million (F Y 2010) Employees.2nd biggest sportswear manufacturer in the world.€ 11.Footwear.540 (F Y 2010) USP – Sports life style No of Outlets .1924 (registered in 1949) Founder(s) .

Concept of ADIDAS • Passion for Sports & shoemaking • Best shoes to serve the needs of sports. • To protect the athlete from injury & to make product durable. .

. • 1963 – Football & sports clothing is launched. • 1924 . • 1952 – Most widely used sports shoe at Olympics in Helsinki. • 1949 – ADIDAS launched its first football shoe.Foundation of “Gebrüder Dassler Schuhfabrik”. • 1948 .Rudolf Dassler and his brother Adolf Dassler start making sports shoes. by Rudolf and Adolf(Adi) Dassler. formed 2 company named as RUDA and ADIDAS.The Journey • 1920 .Split due to family dispute.

• 1972 :. • 1978 :. • 1993 :. giving a one-year guarantee on the sole. to distinguish between authentic and imitation Adidas.Robert Louis-Dreyfus becomes President of Adidas AG. . eventually to become the world’s best-selling football boot ever.Adi Dassler Passes Away.The Journey • 1968 :.“Trefoil Logo” is introduced.Multi-Studded Soles – 1st company in the world to produce injection-moulded multi-stud soles of polyurethane. • 1982:.“Copa Mundial” is launched.

track pants. belt. shorts. jacket. wind suits Accessories Bags. shirts. fragrances .football.Gloves.rackets. Watches.shorts.Deni ms.Knee cap. Sports jacket. Kid’s Apparel Track suits.track suits Men’s Apparel T-shirts.pads.t-shirts. Shorts.bats. shorts.tenis balls. sing guards.Rugby balls.Departments Sports Life Style .corks.Jackets Skirts.shirts Women’s Apparel Tops. Shirts.Shoes.track jacket.

ADIDAS’s Market Performance Luxury Product Sports Lifestyle .

Uniqueness • Micoach – Electronic device which evaluate performance of athelete. • Responsibility towards Society . Ethiopian Adebe Bikila -1960. • Market Depth – Sponsoring before getting into popular.Steffi Graf.) • Tech savvy – Use laser sewn.(Willi Holdorf -1964 . still used today for a wide variety of sports shoes. advanced vulcanization production technique .1988 • Adidas launches the revolutionary “TORSION®” sole system. 1987 .

Product distribution • Products are distributed globally through various retail formats like MBO. EBO. • The company outsource transportation for effective & efficient supply chain.factory outlet. . department store.

Identification of Supplier Auditing of factory Evaluating the condition Training & Improvement Program Grading the Supplier .

Indonesia. in 69 countries. • Major Supplying countries Asia Pacific: China. Thailand or Vietnam.Sourcing Partners • Supplier Dealings :. United Kingdom.Germany. Mexico and Argentina . Europe. Italy. Spain and South Africa/Turkey The Americas: United States.1. India. Canada. Middle East & Africa :.230 independent factories from around the world. Brazil.

Region-wise Supplier Europe.middle east & Africa .middle east & Africa 14% Asia Pacific America 17% Asia Pacific 69% America Europe.

Sourcing Model Direct Sourcing :. Indirect Sourcing :.Contractual relationships with its core suppliers who are centrally supervised by Global Operations. Local Market Production :. or in some cases to react to certain trade regulations . to satisfy a niche market requirement.Sourced by agents or is made under license.In order to quickly seize short-term opportunities in their local markets.

Sourcing Model .Contribution Local Sourcing 5% Sales Indirect sourcing 20% Direct Sourcing 75% Direct Sourcing Indirect sourcing Local Sourcing .

.Jabulani • • • • • Official Football of FIFA 2010. Glue. Thermoplastic polyurethane-elastomer from Taiwan. Using latex bladders from India. Made in China. and ink from China.

Reason For Survival • • • • Tech-savvy Athletes to Advertise Products Innovation for every Major Event Dedicated to Improving Products .

AMM .Thank You Raman.

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