Supply chains that function in this way can quickly respond to changes in demand without missing a beat while maximizing efficiency and profitability, he saidHe said supply chains should ask themselves: "Are we effectively providing insight to our suppliers into future demand, such that they can keep up with and meet our needs? Throughout 2019, we expanded the activities to also strengthen the ability of female supervisors to pass on their knowledge to their peers in dedicated sessions.
This suggests the demand forecast was not the issue, but rather the execution. with no chance of being visited a second time, and factories that were rejected after initial assessments but which were given a chance for a second visit.Training sessions conducted for factory management, workers, licensees, agents and adidas employees.Includes warning letters issued by licensees and agents, but excluding warnings to factories for the non-disclosure of subcontractors, which are either issued directly through business entities, or by the adidas Legal department where there is a breach of contract obligations under a manufacturing agreement. We audit our suppliers regularly against our Workplace Standards. However, where we face situations of severe or repeated non-compliance, we do terminate business relationships with factories.The number of audits using in-house technical staff decreased to 299 (2018: 354), while audits conducted by third-party monitors commissioned by suppliers and adidas business entities increased to 658 at the end of 2019 (2018: 620). with no chance of being visited a second time, and factories that were rejected after being visited a second time.Any cases of non-compliance identified during audits are given a certain time frame for remediation. An evaluation of E-KPI is contained in the description of the environmental performance of our supply chain.adidas regularly rates factories on their ability to provide fair, healthy and environmentally sound workplace conditions by means of conducting announced and unannounced audits through adidas personnel or an approved external auditor. In total, we conducted 123 training sessions and workshops for suppliers, licensees, workers and adidas employees (2018: 143), reaching a total of 1,697 people (2018: 1,282).Warning letters are an essential part of our enforcement efforts and are triggered when we find ongoing serious non-compliance issues that need to be addressed by our suppliers’ factories.
In 2019, a total of 1,191 social compliance audits and environmental assessments (2018: 1,207) were conducted. Adidas' woes offer a cautionary tale for supply chain managers, who can glean lessons from the apparel brand's shortfalls and avoid a similar fate.Senior Analyst of Intelligent Supply Chain, ABI ResearchWhile it's not clear exactly what internal dynamics caused the shortage, experts agree agility and data management can help supply chains avoid the same fate as Adidas. In 2019, we again launched numerous highlight products across all categories – from running shoes to lifestyle sneakers to outdoor apparel.Our audits help us rate our suppliers according to their social and environmental compliance performance with a C-KPI and E-KPI rating tool, respectively.
The latter was due to the rigor applied to the initial assessments. The right data in the right place — and knowing how to use it — may have helped Adidas respond accordingly to demand this past quarter.