Supplier

Number of warning letters issued to adidas Group suppliers
We issue warning letters when we see an ongoing serious lack of management commitment to improving compliance with our Standards. In 2008, we issued a total of 37 warning letters.

Country 1st warning 2nd warning 3rd and final
warning ->
recommended
termination
Total warning
letters
2008 2007 2008 2007 2008 2007 20081 2007
Bangladesh 1 - - 1 - - 1 1
Brazil 1 - - - - - 1 -
Cambodia 1 1 - - - - 1 1
China 11 20 1 3 - 4 12 27
Greece - 1 - - - - - 1
India 3 - 1 - - - 4 -
Indonesia 1 8 1 2 - - 2 10
Jordan - - - - - 1 - 1
Korea 1 - - - - - 1 -
Macao - - - 1 - - - 1
Mexico 1 - - - 1 - 2 -
Philippines 2 - - - - 1 2 1
Thailand 2 3 1 - - 1 3 4
Turkey 1 4 1 - - - 2 4
Vietnam 6 3 - - - - 6 3
Total 31 40 5 7 1 7 37 54
Source:1 Includes warning letters issued by licensees and agents.


Number of business relationship terminations due to compliance problems and rejections after Initial Assessment (IA)
We work closely with our suppliers to help them improve their performance. In situations of severe or repeat non-compliance we will terminate our business relationship with suppliers. In 2008 we terminated agreements with two suppliers for compliance reasons. We also work closely with Global Operations to prescreen potential new suppliers. In total 626 Initial Assessments were conducted, resulting in a 19% rejection rate.

Asia No. of terminations
per country
No. of rejections after
IA per country
2008 2007 2008 2007
Bangladesh - - 4 -
Cambodia - - 5 2
China - 3 54 56
India - - 12 8
Indonesia - - 2 7
Japan - - - 1
Korea - - 1 2
Laos - - 1 -
Malaysia - - - 1
Pakistan - 5 3
Sri Lanka - - - 1
Taiwan - - 1 -
Thailand - - 3 1
Vietnam 1 - 15 6

Americas No. of terminations
per country
No. of rejections after
IA per country
2008 2007 2008 2007
Canada - - 1 4
El Salvador - - - 1
Guatemala - - - 1
Honduras - - - 1
Mexico 1 - 6 2
Peru - - 1 -

EMEA No. of terminations
per country
No. of rejections after
IA per country
2008 2007 2008 2007
Albania - - 1 1
Egypt - - 1 2
Israel - - 1 -
Jordan - 1 1 -
South Africa - - 2 1
Turkey - - 3 3
United Arab
Emirates
- - - 2
Zimbabwe - - 1 -

Global No. of terminations
per country
No. of rejections after
IA per country
2008 2007 2008 2007
Total 2 4 121 106
 
 
Last update: November 23rd, 2009