Adidas' Supply Chain Management: An Analysis of Strategies & Issues

This essay provides an analysis of Adidas' supply chain management strategies, highlighting its vertical integration approach, relationships with suppliers, and commitment to transparency. It discusses the challenges Adidas faces due to its global operations and complex distribution network. The essay references Adidas' history since 1949 and its position in the sports and fitness industry, noting competition from Nike and Reebok. It also emphasizes the company's rigorous quality control processes and multi-tiered supply chain structure. The essay concludes by suggesting that Adidas should establish shorter and simpler supply chains to improve efficiency and responsiveness.

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Supply Chain Management
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Supply Chain Management 2
Supply Chain Management
Since the foundation of Adidas in 1949, the brand has been establishing inventive and
creative products (Hanold, 2012, P. 45). It is categorized as one of the best brand used by the top
and upcoming athletes. The brand is therefore said to have made remarkable smudge mostly on
the sports and fitness industry.
Although this company has contributed greatly to turning athletes to champions through
coming up with high quality footwear, the company is facing stiff competition from its
competitors such Nike and also from its subsidiaries such Rebook which operates independently
(Fbci, 2011, P. 56). The company is also facing rivalry from local firms that deal with similar
products.
To ensure quality, the production process in this company undergoes through various
stages (Ian, 2010, P. 258). For instance, my preferable brand, Adidas sneaker, which is my
current purchase, samples have to pass a rigid acquiescence process and also tested in agreement
with standardized substance and the product testing stipulation and dealings. Also, the company
has dedicated teams whose work is to monitor and undertake rigorous testing prior to production.
The team also collaborates with suppliers throughout the modern process to ensure the quality of
their products is maintained throughout the supply chain process.
Sarkar (2017, P. 98) states that Adidas has adopted a supply chain which is slant, great,
multi-tiered and varied with many diverse types of dealing partners. The company’s supply chain
comprise of tier 3, tier 2 and tier 1, which each of them performing different tasks in the supply
chain cycle. It also outsources the majority of its products by working with about 800
autonomous factories from different countries, which plays the role of fabricating the products in
more than 55 countries

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The company uses a vertical integration strategy which describes the extent to which a
business owns its upstream suppliers and also its downstream buyers. Vertical integration also
helps Adidas to increase the power of its expansion stages.
The company has been fostering the existence of positive relationship with all entities
involved in its supply chain because it believes they play a significant role in making its products
to move from one stage to the other. Through this relationship, Adidas has been able to realize
effective supply chain cycle, which involves not only good flow of products but also attainment
of information from the consumers. The company is also committed to transparency and public
discovery; this has enabled it to acquire brand image and reputation. According to Mohsen
(2016, P. 69), this company is among few producers who have fully disclosed their international
factory lists. For instance, it has published comprehensive information which include name and
location of suppliers by country.
Despite being one of the leading companies, Adidas is facing challenges in strengthening
its supply chain. According to Mohsen (2016, P. 70), this company has been in operation for
more than 80 years, and also operates in different countries, a factor which has made it difficult
to manage a strong distribution network. Additionally, its long and complex supply chain has
made it difficult for its management to manage its distribution effectively.
To address this challenge, the company should establish short and simple supply chain.
Sarkar (2017, P. 101) affirms that shorter supply chains makes it possible for a company to
identify all key things that are likely to negatively affect effective flow of products across the
various stages. Additionally, short supply chain makes the products to be delivered to the
consumers when the need is still available.

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References
Fbci, B. K 2011, A Supply Chain Management Guide to Business Continuity, New York,
American Management Association.
Hanold, M 2012, World Sports: A Reference Handbook, Anta Barbara, CA, ABC Clio
Ian, B 2010, Sports Sponsorship Is Flourishing despite the Recession, The International Sports
Law Journal, vol. 3-4, pp. 254-279.
Mohsen, V 2016, Sustainable Supply Chain Management: A Brief Literature Review, The
Journal of Developing Areas, vol. 50, no. 6, pp. 65-87.
Sarkar, S 2017, The Supply Chain Revolution: Innovative Sourcing and Logistics for a Fiercely
Competitive World, New York, AMACOM.