Adidas is a company that operates in the textile and footwear industries. In addition, Adidas outsources most of its production. In total, adidas works with more than 400 independent factories from around the world that manufacture adidas products in around 45 countries. The adidas supply chain is global and multi-layered, with different types of business partners, some of which are directly contracted factories, while others are not.
The Adidas Company uses 4 types of outsourcing :
1. Personal Employment Outsourcing (PEO): Adidas uses PEOs to manage some of its HR functions, such as recruitment, training, and salary administration. This allows Adidas to focus on its core business and reduce HR costs.
2. Business Process Outsourcing (BPO): Adidas Company uses BPO to outsource some business processes, such as accounting, logistics, and customer service.
3. Information Technology Outsourcing (ITO): Adidas uses ITO to outsource some IT functions, such as application development and maintenance, IT infrastructure, and cybersecurity.
4. Knowledge Process Outsourcing (KPO): The use of KPO in adidas companies can outsource some functions that require specialized expertise, such as market research, data analysis, and product design.
Adidas Supply Chain Flow
adidas suppliers fall into five broad categories:
- Manufacturing partners have a direct contractual relationship with adidas to provide products for both export and domestic market consumption.
- Subcontractors are factories that have been subcontracted by our suppliers to perform manufacturing operations that our key suppliers are not capable of performing in their own facilities.
- Other material and service providers may not have a direct business relationship with Adidas, but supply goods and services to our key suppliers.