Supplier

Frequency of factory visits by the SEA Team in 20051
As part of our new approach to monitoring compliance, we visit fewer factories but we visit them more often.

Number of visits Asia Americas Europe
0 140 119 97
1 168 28 50
2 45 10 1
3 17 1 0
4 5 1 0
5 or more 14 5 0
Total no. of factories 389 164 148
Source: Example: 45 factories in Asia were visited two times in 2005
1 Not included are more than 30 visits in licensee factories and visits that were conducted in factories of the Salomon business segment in 2005. Also excluded are visits in inactive adidas and TaylorMade factories.


Trainings in 2005 divided by region and type1
We aim to integrate supplier compliance into our core operations and build capacity in our supply chain. To achieve this we conducted 225 training sessions, 65 more than in 2004. Of these 225, 144 were attended solely by suppliers and factory workers, 64 were for adidas staff and 17 were attended by both suppliers and adidas employees.

                                                        Type and number of training
Region General SoE-training2 Specific Labour training3 Specific HSE training4 Environ-mental training5 Strategic Monitoring training6 Total trainings
Americas 12 20 7 0 3 42
Asia 67 20 35 1 1 124
Europe 38 8 5 1 7 59
Total 117 48 47 2 11 2257
Source:1 Including trainings in licensee factories and factories of the Salomon business segment
2 General SoE-Training: E.g. Practical On-Site Training; Presentations for awareness raising
3 Specific Labour Training: E.g. Worker-management communication; Sharing Best Practice; Freedom of Association; Factory Overtime System; Grievance & Appeal systems
4 Specific HSE Training: E.g. Sharing Best Practice; Chemicals in production
5 Environmental Training: E.g. Hazardous waste treatment; Environmental Best Practice
6 Strategic Monitoring Training: E.g. Evaluation of compliance systems, administrators, and their efficiency
7Including 63 group training sessions


Number of audits and trainings in 2005

Year 20051 2004 2003 2002 2001
Audits2 916 954 906 1,148 839
Trainings 225 160 206 255 267
Source:1 Including audits and trainings in licensee factories and factories of the Salomon business segment
2 Excluding FLA and other external audits; includes multiple visits in the same factory


Independent FLA Audits in 20051
In May 2005, the Fair Labor Association (FLA) accredited the compliance programme of the adidas Group. In 2005, there were seven external, independent monitoring audits by FLA-accredited monitors; five monitoring visits in Asia, one in the Americas and one in Europe. Five of these FLA audits were shared with other brands. Two non-shared FLA audits were conducted by external monitors.
As part of the FLA Soccer Project five additional audits were conducted. As part of the adidas SOE programme assessment in 2005, two more FLA factory visits took place.

FLA Year Period No. of audits2
1st Aug 2001 - Dec 2002 42 Audits
2nd Jan - Dec 2003 13 Audits
3rd Jan - Dec 2004 12 Audits
4th Jan - Dec 2005 7 regular FLA audits
5 FLA audits as part of the FLA 'Soccer' project
2 FLA factory visits as part of the adidas SOE
programme assessment in 2005
Source:1 As part of the FLA membership
2 From 2003 onwards, a new risk method was applied by the FLA, randomly selecting the factories to be independently audited. Hence the reduced number of factories subject to FLA audits.


External Audits in 20051
On behalf of the licensees, external monitors completed 46 audits in licensee factories. This includes 13 audits that were done by licensee SOE staff. Two external audits (not FLA and no licensee audits) were conducted on behalf of the adidas Group.

Licensee audits2 External audits on behalf of the adidas Group
2004 60 2
2005 463 2
Source:1 Excluding FLA audits
2 Audits conducted in licensee factories by external monitors and internal licensee staff
3 Includes 13 audits conducted by internal licensee SOE staff


2005 Factory Rating - International and local acitve supplier factories, including licensee factories1

The table below summarises the performance of our suppliers against our SOE using our old five-star system. This was still in use in 2005 as we began the transition to our new KPI. It reflects the lowest score of either HSE or labour performance of each supplier. The five grades of our factory rating system are: 
1 star - There are numerous severe non-compliances. The factory has been given notice that business will be terminated unless there is immediate improvement 
2 star - There are some non-compliance issues and the factory is responding to the action plan slowly or with reluctance. The factory is monitored regularly.
3 star - There are minor non-compliance issues, and the factory is responding to the action plan positively.
4 star - Generally there are no non-compliance issues, and there are some best practices in place, confirmed in documentation.
5 star - There are no non-compliance issues and all of the factory’s management system and practices are in place, confirmed in documentation.

Labour/HSE standards                                  Apparel
Asia
C-Rating		 Americas
C-Rating		 Europe
C-Rating
* 4 0 0
** 93 14 16
*** 44 28 23
**** 2 0 3
***** 0 0 0
Total active factories rated in 2005 143 42 42

Labour/HSE standards                                  Hardware²
Asia
C-Rating		 Americas
C-Rating		 Europe
C-Rating
* 4 0 0
** 31 1 0
*** 10 1 3
**** 0 0 0
***** 0 0 0
Total active factories rated in 2005 45 2 3

Labour/HSE standards                                Footwear
Asia
C-Rating		 Americas
C-Rating		 Europe
C-Rating
* 0 0 0
** 5 1 0
*** 15 1 3
**** 1 0 0
***** 0 0 0
Total active factories rated in 2005 21 2 3
Source:1 Reflected is the lowest rating of either HSE or Labour performance of each supplier
2 Accessories and gear


 
 
Last update: November 23, 2009