Supplier

Number of factory audits / visits and trainings
During 2008, 1,323 factory visits involving management and worker interviews, document review, facility inspections and trainings were conducted at different levels in our supply chain. The SEA team conducted 251 training sessions and workshops for suppliers, licensees, workers and adidas Group employees.

Year 2008 2007 2006 20052
Visits (incl. Audits)1  1,323 1,007 1,101 916
Trainings 251 267 173 225
Source:1 Including multiple audits/visits in the same factory conducted by the adidas Group SEA team and external monitors, but excluding FLA audits. Including audits in licensee factories; visits involving management and worker interviews, document review, facility inspections and trainings on-site.
2 Figures for 2005 do not include the Reebok business.


Number of training sessions divided by region and type1
In 2008, we continued our intensive efforts to provide training for our suppliers as well as for the SEA team, licensees and employees of the adidas Group. To build capacity in our supply chain and within the adidas Group, the SEA team conducted 251 training sessions for more than 2,470 participants. Included in this number are 81 group training session.

                                                        Type and number of training
Region Year Fundamental2 Performance3 Sustainability4 Total
Asia 2008 80 68 11 159
2007 98 58 34 190
Americas 2008 51 11 4 66
2007 35 1 6 42
Europe 2008 24 0 2 26
2007 24 2 9 35
Total
 20085 155 79 17 2517
20076 157 61 49 2678
Source:1 Trainings conducted for suppliers, workers, licensees, agents and adidas Group employees.
2 Fundamental training covers: Workplace Standards & SEA introduction; FFC training; SEA policies & SOPs.
3 Performance training covers: Specific labour, health, safety and environmental issues.
4 Sustainability training covers: Sustainable compliance guideline & KPI improvement; Factory Self-Audits (factory internal audits).
5 In 2008, more than 2,470 people participated in these trainings.
6 In 2007, more than 3,500 people participated in these trainings.
7 Including 81 group training sessions, i.e. trainings with participation of more than one supplier.
8 Including 123 group training sessions, i.e. trainings with participation of more than one supplier.


Number of audits divided by region and type
In 2008, the SEA team conducted 1,261 audits (including external monitoring audits). In addition to these audits, the SEA team visited suppliers' sites several times to meet with factory management and discuss specific issues, to follow up project work or conduct training sessions. Completing a high volume of initial assessments remained a challenge for the SEA team in 2008, particularly in Asia. There were a total of 626 Initial Assessments, resulting in 19% of candidate factories rejected. Performance audits are only recorded as such since the beginning of 2008, so that no comparable data is available for this audit type. All audits were collected as Initial Assessment or Sustainability Assessment in 2007. Audits conducted by external monitors in 2008 were commissioned by adidas Group entities, including licensees with indirect sourcing models.

Initial Assessment1

Region Year SEA Team External Monitors Total
Asia 2008 207 308 515
2007 205 147 352
America 2008 60 10 70
2007 38 10 48
EMEA 2008 9 32 41
2007 13 28 41
Total 2008 276 350 626
2007 256 185 441

Performance Audit2

Region Year SEA Team External Monitors Total
Asia 2008 461 35 496
2007 - - -
America 2008 65 - 65
2007 - - -
EMEA 2008 13 15 28
2007 - - -
Total 2008 539 50 589
2007 - - -

Sustainability Assessment3

Region Year SEA Team External Monitors Total
Asia 2008 39 - 39
2007 240 2 242
America 2008 6 - 6
2007 13 - 13
EMEA 2008 1 - 1
2007 28 4 32
Total 2008 46 - 46
2007 281 6 287

Total

Region Year SEA Team External Monitors Total
Asia 2008 707 343 1,050
2007 445 149 594
America 2008 131 10 141
2007 51 10 61
EMEA 2008 23 47 70
2007 41 32 73
Total 2008 861 400 1,2614
2007 537 191 728
Source:1 Every new supplier factory has to pass an Initial Assessment to prove compliance with the Workplace Standards prior to order placement.
2 Performance audits are only recorded as such since the beginning of 2008, so that no comparable
data is available for this audit type. All audits were collected as Initial Assessment or Sustainability Assessment in 2007.
3 Audits conducted in approved supplier factories.
4 Including 181 audits conducted in licensee factories by external monitors and the SEA team.


Number of audits conducted in licensee factories by the SEA team and external monitors divided by region and type in 20081

Initial Assessment2

Region SEA Team External Monitors Total
Asia 8 98 106
Americas 9 4 13
EMEA - 3 3
Total 17 105 122

Performance Audit

Region SEA Team External Monitors Total
Asia 28 16 44
Americas 2 - 2
EMEA - 6 6
Total 30 22 52

Sustainability Assessment3

Region SEA Team External Monitors Total
Asia 5 2 7
Americas - - -
EMEA - - -
Total 5 2 7

Total

Region SEA Team External Monitors Total
Asia 41 116 157
Americas 11 4 15
EMEA - 9 9
Total 52 129 181
Source:1 This might include factories which produce both for the adidas Group directly as well as for licensees/ agents.
2 Every new supplier factory has to pass an Initial Assessment to prove compliance with the Workplace Standards prior to order placement.
3 Audits conducted in approved supplier factories.


KPI Assessment and C-Rating
The table shows the average audit score by unit of measure for those active core suppliers that were rated against the six units of measure in the KPI to date. The two columns on the right hand overview indicate the percentage of factories per C-Rating.

KPI unit of measure 2008 2007 C-Rating % of factories
Management commitment and
responsiveness		 40.12 64 0-C 0.75%
Management systems 48.74 45 1-C 7.52%
Worker-management communication
and industrial relations		 65.44 64 2-C 54.51%
Compliance training for
workers and management		 58.80 55 3-C 28.57%
Transparency in communication
and reporting		 71.79 74 4-C 8.65%
Compliance performance 59.04 60 5-C 0%
KPI Cumulative Score 47.79 - Total 100%

Independent FLA Audits1
Since joining the FLA in 1999, more than 220 Independent External Monitoring (IEM) audits and verification visits have been conducted at adidas Group suppliers. In 2008, FLA activities included 4 independent external monitoring visits to factories in Bangladesh, China, Egypt and Indonesia. 4 factories in China and Thailand participated in FLA 3.0 exercises and 3 factories received external verification visits. 8 factories participated in 3 FLA special projects in Asia, EMEA and Central America. These so-called redirected audits are FLA Participating Company engagements in specific project work that addresses resolution of chronic compliance issues in the global workplace. Re-directs are substituted for independent external monitoring visits to factories. This substitution option is only available to FLA accredited programmes. The term derives from the 're-direction' of IEM fees to financially support specific project work by the FLA to address chronic compliance issues.

FLA Year Period No. of audits
4th2 Jan - Dec 2005 30
5th Jan - Dec 2006 43
6th Jan - Dec 2007 15
7th Jan - Dec 2008 19
Source:1 Including Independent External Verification audits and redirected audits.
2 Including audits conducted for Reebok before it was acquired by the adidas Group in 2006.


 
 
Last update: November 23rd, 2009