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The vast majority (84%) of all initial assessments were undertaken in Asia (2018: 90%), with China accounting for 38% of these assessments (2018: 41%).Fundamental training covers Workplace Standards and SEA introduction, FFC training as well as SEA policies and standard operating procedures.80% to achieve 80% or above in Score Card reportsEvery new factory has to pass an initial assessment to prove compliance with the Workplace Standards before an order is placed. Being able to execute a demand plan based on a reliable forecast is crucial and requires flexibility within the end-to-end supply chain," Nick Finill, senior analyst of intelligent supply chain at ABI Research, told Supply Chain Dive in an email.Adidas hasn’t given too many details, so we don’t know exactly what internal dynamics caused the shortage. This represents a decrease of 22%, due in part to a reduction in the intake of new factories into the supply chain, which led to a decline in the number of fundamental or introductory training sessions. Collaboration audits are conducted in partnership with other brands, or as part of joint remediation exercises. The right data in the right place — and knowing how to use it — may have helped Adidas respond accordingly to demand this past quarter. Responses received through this platform are carefully tracked and help us understand the main challenges and worker rights issues in the factories, ultimately allowing us to monitor how the factory management teams find solutions and communicate back to their workers.80% to reach at least 4C ratingPerformance training covers specific labor, health, safety and environmental issues.Core to the human rights approach of adidas is its commitment to ensuring fair labor practices, fair compensation and safe working conditions in factories throughout its global supply chain. 49 factories (2018: 55 factories) were either rejected directly after the initial assessment identified zero-tolerance issues, or were ‘rejected with a second visit’ due to identification of one or more threshold issues, which means they were rejected but given the chance to remediate the non-compliance issues within a specific timeframe. We report these non-compliance findings that were identified through performance audits, collaboration audits and self-governance assessments in 2019. Finill said poor data management and lack of real-time insights are some of the biggest barriers to agile supply chains.Simon Croom, academic director of the Master's in Supply Chain Management program at the University of San Diego, told Supply Chain Dive that what he sees in Adidas’ situation is a possible slow signal uptake.Lag time, one might say, is the mark of an inflexible, sluggish supply chain.Adidas seems to know this. As part of our wider efforts to empower female workers in our supply chain, we initiated a Women’s Empowerment Program in Pakistan to train women on how to secure better career opportunities in the workplace. The number of audits in factories manufacturing goods for licensees decreased slightly from 323 in 2018 to 317 in 2019, in line with the overall reduction in the number of licensee factories.Alongside factory-led training, adidas has also offered tailored training for supervisors since 2016. Adidas is one of the leading players in the sports shoe industry with a large market base and a strong sales and distribution network spread worldwide. We follow up on all cases of non-compliance and seek to remediate them within a given timeframe. There was also a reduction in the number of advisory visits to individual factories, with a preference given to group learning through adidas hosted workshops. ; Shortages, attributable to Asian suppliers, will be felt mostly in North America and in the first half of 2019.
We work closely with our suppliers to help them improve their performance. The standards form a contractual obligation under the manufacturing agreements adidas signs with its main business partners to ensure workers’ health and safety and environmentally sound factory operations by following International Labour Organization (ILO) and United Nations (UN) conventions relating to human rights and employment practices, as well as the model code of conduct of the World Federation of the Sporting Goods Industry (WFSGI).