Reebok 2006 Annual Report Download - page 64
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› Structure and StrategyGroup Management Report ›
060 ANNUAL REPORT 2006 › adidas Group ›
Global Operations
The adidas Group’s Global Operations function coordinates
the development, commercialization, manufacturing and
distribution of our products and leads the Group’s efforts
in supply chain improvement. Our products are almost
entirely manufactured by independent suppliers, primarily
located in Asia. Global Operations continually strives to
optimize our Group’s supplier network to increase cost
efficiency throughout our supply chain and ensure consis-
tently high product quality. The integration of Reebok into
our supply chain will enable us to maximize buying power
and leverage our additional scale to drive significant cost
savings. We are committed to continuously improving both
product creation and procurement to achieve optimal
results in terms of quality, delivery performance, flexibility
and speed-to-market.
Independent Manufacturers Produce adidas Group Products
Independent manufacturers produce nearly 100% of our
products. We provide these suppliers with detailed speci-
fications for production and delivery. In 2006, we worked
with 547 independent manufacturing partners (2005: 223
excluding Reebok). This excludes local sourcing partners for
apparel, subcontractors, second tier suppliers and factories
of our licensees. Of these suppliers, 66% were located in
Asia, 19% were located in Europe (incl. Africa) and 15% in the
Americas. 39% of all Asian suppliers were located in China. In
order to ensure the high quality that consumers expect from
our products, we enforce strict quality control and inspection
procedures at our suppliers. In addition, we promote adher-
ence to social and environmental standards throughout our
supply chain (see Sustainability, p. 63).
1) Figures only include adidas and Reebok brands, excluding local sourcing of apparel,
subcontractors, second tier suppliers and licensee factories.
Suppliers by Region1)
Americas 15% Asia 66%
Europe
(incl. Africa) 19%
1) Figures only include adidas and Reebok brands.
Footwear Production by Region1)
Americas 1% Asia 97%
Europe
(incl. Africa) 2%
1) Figures only include adidas and Reebok brands.
Apparel Production by Region1)
Americas 8% Asia 76%
Europe
(incl. Africa) 16%