(Luận văn) determinants of adidass supply chain performance in asia pacific region 001

MINISTRY OF EDUCATION AND TRAINING t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY hi - oOo - ep w n lo ad ju y th yi NGUYEN NGOC QUOC pl al n ua DETERMINANTS OF ADIDAS’S SUPPLY CHAIN PERFORMANCE IN ASIA PACIFIC REGION n va ll fu oi m at nh z MASTER OF BUSINESS ADMINISTRATION THESIS z ht vb k jm om l.c gm n a Lu n va y te re Ho Chi Minh City – 2011 MINISTRY OF EDUCATION AND TRAINING t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY hi ep - oOo - w n lo ad ju y th yi NGUYEN NGOC QUOC pl al n ua DETERMINANTS OF ADIDAS’S SUPPLY CHAIN PERFORMANCE IN ASIA PACIFIC REGION n va ll fu oi m at nh z MAJOR: BUSINESS ADMINISTRATION z vb MAJOR CODE: 60.34.05 ht k jm MASTER THESIS om l.c gm INSTRUCTOR: DR VO THI QUY n a Lu n va y te re Ho Chi Minh City – 2011 ACKNOWLEDGEMENTS t to I would like to express my deepest gratitude to my research Instructor, Dr Vo ng Thi Quy for her intensive support, valuable suggestions, guidance and encouragement hi ep during my study I would like to express my sincere gratitude to all of my teachers at Faculty of w n Business Administration and Postgraduate Faculty, University of Economics Ho Chi lo ad Minh City for their teaching and guidance during my MBA course ju y th Also, I fully appreciate those who were willing to participate in interview and survey session yi pl My sincere thanks are extended to Ms Hoa Ly (Footwear Country Manager of al ua adidas Viet Nam) and Mr Woj (Head of Operation of NEO label category) for their n comments on my proposal as well as the approval to conduct the survey within adidas n va supply chain fu ll Last but not least, the deepest and most sincere gratitude go to my beloved m oi parents, my wife, my sons and my closest friends for their boundless support, abundant at nh love and encouragement throughout my period of study I, therefore, dedicate this work z as a gift to all of them z ht vb k jm om l.c gm n a Lu n va y te re ABSTRACT t to It goes without saying that supply chain management has played major role in every ng business locations under globalization and intensive world-wide competition More and hi ep more firms have been aware of importance of supply chain management (SCM) and attempt to enhance the effectiveness of SCM in order to secure their competitive w n advantages This paper aims at investigating the relations between supply chain lo ad practices (Strategic supplier partnership, Product creation, Purchasing/Supply planning, y th Sourcing Production (manufacturing), internal lean practices (Fast and Lean)) and ju yi adidas supply chain performance in a pull-based supply chain A framework expressing pl the hypothesized relations among the above-mentioned variables has been developed al n ua and validated by examining the validity and reliability of measurement scale, the va findings add credence to the positive effects of Product creation, Purchasing/Supply n planning, Internal lean practices (Fast and Lean) as antecedents to higher performance in fu ll the supply chain This work can support managers in taking supply chain design m oi decisions and in defining countermeasures to mitigate their effects on supply chain nh performance at z z vb ht Keywords: Supply chain; Supply chain management; supply chain practices, k jm om l.c gm n a Lu n va y te re TABLE OF CONTENTS t to Chapter 1: Introduction to study 10 ng 1.1 Background or Rationale 10 hi ep 1.2 Research problem 12 1.3 Research questions and research objectives 15 w n 1.3.1 Research questions .15 lo ad 1.3.2 Research objectives 16 ju y th 1.4 Scope and Limitation of research 16 1.4.1 Research scope 16 yi pl 1.4.2 Research limitation .17 al ua 1.5 Research method 18 n 1.6 Structure of research 18 va n Chapter 2: Introduction to adidas Limited Sourcing Company 20 fu ll 2.1 Introduction about adidas group 20 m oi 2.2 Adidas‟s Strategy 22 nh 2.3 Major locations and partnerships 26 at z 2.4 Business performance in FY09 and its action plans in FY10 26 z ht vb 2.4.1 Business Performance 26 jm 2.4.2 Its Action Plan in FY10 27 k Chapter 3: Literature Review 34 gm 3.1 Literature review 34 om l.c 3.1.1 Strategic supplier partnership 34 3.1.2 Product creation 36 a Lu 3.1.3 Purchasing/Supply planning 40 n y te re 3.1.6 Postponement-Inbound Customs, Order Fulfillment/Warehouse and va 3.1.5 Internal lean practices (Fast and Lean) .46 n 3.1.4 Sourcing production (manufacturing) 43 Outbound/Point of Sale 47 3.1.7 Supply Chain Performance 48 3.2 Conceptual framework and Hypotheses 53 t to Chapter 4: Research method - 54 ng 4.1 Research Design 54 hi ep 4.2 Measurement scale development 56 4.3 Sampling technique and Data collection 59 w 4.3.1 Sampling technique 59 n lo 4.3.2 Data collection 60 ad y th 4.4 Data analysis methods 61 ju 4.4.1 Unidimensionality Analysis with Exploratory Factor Analysis 62 yi 4.4.2 Reliability Analysis with Cronbach‟s Alpha 62 pl ua al 4.4.3 Assessment of Conceptual Model and Hypotheses 63 n Chapter 5: Empirical results of the research - 64 va 5.1 Descriptive Analysis 64 n ll fu 5.2 Exploration Factor Analysis .66 oi m 5.3 Reliability analysis 69 at nh 5.4 Testing Hypothesis with Linear Regression 71 Chapter 6: Conclusions and Suggestions 77 z z 6.1 Theoretical contributions 77 vb ht 6.2 Managerial contributions 77 jm 6.3 Limitations and Suggestions for Future Researches 82 k gm References 84 om l.c Appendix - 88 Appendix - 92 a Lu Appendix - 94 n n va Appendix - 95 y te re LIST OF FIGURES t to Figure 1.1 Research Scope 17 ng Figure 1.2 Structure of the study 19 hi ep Figure 2.1 Global Operations in Go-to-Market Process 27 Figure 2.2 Suppliers by footwear production by region 32 w n Figure 3.1 adidas Product Creation Process 39 lo ad Figure 3.2 Conceptual framework 53 ju y th Figure 4.1 Research process 56 Figure 5.1 Structure of chapter 64 yi pl Figure 5.2.The revised model of determinants of Supply chain al n ua Performance 76 n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re LIST OF TABLE t to Table 3.1 Studies related to sourcing strategy 43 ng Table 4.1 Constructs for SCM practices, Supply Chain Performance .57 hi ep Table 4.2 Respondent characteristics 60 Table 4.3 Statistical information about collected samples 61 w n Table 5.1 Descriptive statistics results 65 lo ad Table 5.2 Factor loading analysis results 68 ju y th Table 5.3 Results of Exploration Factor Analysis .70 Table 5.4 Means and standard deviations 71 yi pl Table 5.5 The correlations of factors of SC 72 al ua Table 5.6 R Square and Adjusted R square 73 n Table 5.7 Results of linear regression analysis 73 n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re ABBREVIATIONS t to ng hi ep w n EMEA Europe, Middle East and Africa GPS Global Procurement System ILP Internal Lean Practice ILS International Logistics Planning System lo Product creation PSP Purchasing/Supply Planning ad PC Research and Development yi Systems, Applications and Products in Data Processing pl SAP ju y th R&D al Supply Chain SCM Supply chain management SCP Supply chain performance SP Sourcing Production SSP Strategic Supplier Partnership n ua SC n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re CHAPTER t to ng INTRODUCTION TO THE STUDY hi ep 1.1 Background or Rationale: w It goes without saying that supply chain management (SCM) has played major n lo role in every business locations under globalization and intensive world-wide ad y th competition An increased focus on SCM as an operational phenomenon that can be ju leveraged to achieve superior organizational performance (e.g., Hult, Ketchen, &Slater, yi 2004) has been studied A supply chain (SC) is defined as the “network of facilities and pl ua al activities that performs the functions of product development, procurement of material n from suppliers, the movement of materials between facilities, the manufacturing of n va products, the distribution of finished goods to customers, and after-market support for ll fu sustainment” (Mabert & Venkataramanan, 1998, p.538).SCM is the management of a oi m network of interconnected businesses involved in the ultimate provision of product and nh service packages required by end customers (Harland, 1996) SCM is also “a key at strategic factor for increasing organizational effectiveness and for better realization of z z organizational goals such as enhanced competitiveness, better customer care and vb ht increased profitability” (Gunasekaran et al.2001, p.71).The major goals of SCM are to jm minimize non-value-added activities and associated investment cost and operating cost, k gm increase customer responsiveness and flexibility in the supply chain, and enhance l.c bottom-line performance and cost competitiveness (Stewart 1995) A recent study om conducted by Petrovic-Lazarevic and Sohal (2002) reported that effective management a Lu of the supply chain has been identified as being of significant importance to achieving n and sustaining a competitive advantage for firms in the Australian textiles, clothing, and va footwear industry n y te re Supply chain performance (SCP) is affected by exogenous variables (e.g demand and lead time variability), SCM and planning decisions and supply chain design decisions (Forrester, 1961; Sterman, 2000; Lee et al., 1997a, b; Chen et al., 2000; Sezen, 10 implement continuous improvement (Kaizen) activities which are shared among t to contract factories, T2 quarterly Kaizen activities are focusing on enhancing quality ng stability, shortening manufacturing lead-time or increasing productivity that help to hi better improve SCP On the other hand, “Pull” production system is being implemented ep in contract factories and suppliers very effectively w Reducing cycle-time, down time and inventory helps to improve delivery n lo performance significantly Adidas and contract factories also have planned to push ad y th suppliers shorten lead-time The material lead-time is one of key elements to assess ju supplier‟s performance from the contract factories Therefore, the suppliers always yi attempt to reduce lead-time in order to satisfy their customers As a word, lean pl ua al implement practices are positively related to adidas‟s SCP as indicated in both research n result and the reality To enhance internal lean practices, the companies should reduce n va development and commercialization lead-time as short as possible On the other hand, ll fu the companies should effectively implement Kaizen activities, “Pull” production Also, nh Supply chain performance oi m the companies should push their suppliers to shorten material lead-time at In this study, SCP is influenced by factors discussed above The main objective z z of SCP is to satisfy customer demand regarding delivery timeliness, accurate expected vb ht quality and quantity Besides, good SCP would help the companies to reduce jm manufacturing and delivery costs It also helps the companies introduce their new k gm products to market more quickly It means that the companies will enhance more their l.c competitiveness in the market As research result, the companies should improve the om factors: Production creation, Purchasing/supply planning, Internal Lean practice in order a Lu to enhance their SCP However, different companies have their own different nature of n business and resource Therefore, each company should have its own ways to improve n va SCM practices in order to enhance its SCP performance can also be studied This might be critical as SCM has strategic implications both at the firm level and the supply chain levels 81 In addition, as y overall cost may be integrated into the framework, and their impact on organizational te re Additional SCM performance measures such as improved quality and reduced recognized by Trent (2004), contrary to the popular notion that effective SCM is only in t to the hands of managers, this research proposes that, in order to achieve a successful ng implementation of the supply chain, all units of the SC should fully embrace and hi understand the strategy Finally, the framework is believed to offer SCM managers a ep means to identify factors and effectively implement SCM w 6.3 Limitations and Suggestions for Future Researches n lo As with most empirical and survey-based research, there are a few limitations ad y th experienced during the present study The sample was restricted to some Asia T1 and T2 ju manufacturers and whilst this serves to control for extraneous sources of variation, yi caution should be used in extrapolating the results to other contexts The analysis was pl ua al undertaken with data collected from the side of the manufacturer Since the objective is n to determine which factors impact on the performance of the supply chain, then data n va collected from suppliers as well as end consumers may provide additional insights This oi m dyadic approach ll fu suggests that future research may seek to collect data from the supplier‟s side or adopt a nh Future research may expand the scope of the enquiry to other regions and may at also adopt cross-cultural perspectives In addition, a longitudinal study may provide z z further insights The study employed perceptual data from a single informant in each of vb ht the firms surveyed This raises the issue of possible biases such as over-evaluation on jm behalf of the respondents Future research may employ alter- native research designs k gm that could include the use of objective data, multiple informants and longitudinal data l.c Furthermore, future study can expand the SCM practices construct by including om some additional dimensions, such as total quality management (Tan et al., 2002), cross- a Lu functional coordination (Chen and Paulraj, 2004), and internal integration (Pagell, 2004; n Braganza, 2002) Moreover, inter-organizational relationships, such as trust, va commitment, shared vision (Li, 2002), risk and award sharing, and agreed supply chain n y and validating the combined construct te re leadership (Min and Mentzer, 2004) The future research then should focus on testing Despite these limitations and avenues for future research, a fundamental model was developed that includes the determinants of the big SC in shoes industry to illustrate 82 and give broad knowledgeable access to this industry Given its theoretical foundation t to and methodological rigor, this study helps close the gap between what we know about ng shaping SCP and what scholars and managers need to know More broadly, our findings hi demonstrate the value of juxtaposing the three literature streams of Production creation, ep Purchasing/supply planning, and Internal Lean practice w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 83 References t to Armstrong, J.S., Overton, T.S., 1977 Estimating nonresponse bias in mail surveys ng hi Journal of Marketing Research 14 (3), 396–402 ep Balsmeier, P.W., Voisin, W., (1996) Supply chain management: a time-based strategy w Industrial Management 38 (5), 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Measuring the unmeasurable-measuring and improving l.c performance in the supply chain Supply Chain Management (4), 187–192 a Lu and an operational model Management Science 35, pp 687–705 om Venkatraman and Ramanujam, (1987) Planning system success: a conceptualization n Vesey, J.T., (1991) The new competitors: they think in terms of speed to-market n va Academy of Management Executive (2), 23–33 Management 35 (3), 33– 39 87 y supplier involvement on manufacturing performance Journal of Supply Chain te re Vonderembse, M.A., Tracey, M., (1999) The impact of supplier selection criteria and Appendix Questionnaire t to Determinants of Supply chain performance of adidas Sourcing Limited in Asia Pacific ng region hi The objectives of this paper are to identify key factors of supply chain management ep (SCM) practices affecting adidas supply chain performance in Asia and measure w relationship between SCM practices and adidas supply chain performance Your n lo feedback on this research will be highly appreciated and very valuable to my research ad y th Pls be noted that there is no wrong or right answer and all information will be treated ju confidentially and used for this research only yi A General information pl ua al Respondent‟s name: n Company‟s name: n va Title: ll fu Company‟s address: oi m Telephone (office): nh Telephone (mobile): ] Leather [ ] ] Other [ ] ht ] Chemical [ ] Textiles [ vb ] Rubber [ ] Synthetic leather [ z Lace/Webbing [ z Footwear (adidas, T1) [ at Industry: (please select from the list): jm B Information regarding Supply Chain Practices of surveyed companys k gm Directions: Indicate to what extent you agree or disagree with the statements n mean that you are undecided about the statement (U) a Lu mean that you disagree with the statement (D) om means that you strongly disagree with the statement (SD) l.c listed below by selecting one of the following va mean that you agree with the statement (A) n te re mean that you strongly agree with the statement (SA) y Strategic Supplier Partnership (SSP) Your company shares your strategies to your key partners by every fiscal year (SSP1) Strongly disagree [ ] Disagree [ ] Undecided [ ] 88 Agree [ ] Strongly agree [ ] Your company includes your key partners in your planning and goal-setting activities ( SSP2) t to Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] ng hi Your company is fully aware of your partner‟s strategies.( SSP3) ep Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] Your company regularly solves problems jointly with your partners.( SSP4) w Disagree [ ] n Strongly disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] lo ad Your company helps your partners to improve their product quality and price.( SSP5) Disagree [ ] y th Strongly disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] ju Your company considers service, quality and price as criterion in selecting yi pl partners.( SSP6) Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] ua al Strongly disagree [ ] n Your company share mutual benefits with your partners ( SSP7) Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] n va Strongly disagree [ ] fu Your partners‟ strategies and your companys‟ Strategies impact much to your ll company‟s SCM and finance performance.( SSP8) Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] at nh Product Creation (PC) oi m Strongly disagree [ ] z Your company pro-actively supports your partners in new product development z Undecided [ ] Agree [ ] Strongly agree [ ] jm Disagree [ ] ht Strongly disagree [ ] vb processes.( PC1) k 10 Your company gets and provides all product specifications details/requirements from Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] om l.c Strongly disagree [ ] gm your partners in time.(PC2) 11 Your company capacity can satisfy the time line of product creation to your Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] n Strongly disagree [ ] a Lu customers.(PC3) va 12 Your company is able to adapt to the changing consumer preferences more quickly, n Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] 13 Your company‟s product creation impacts much to your SCM and finance performance.(PC5) 89 y Strongly disagree [ ] te re flexibly and efficiently.(PC4) Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] Purchasing/Supply Planning (PSP) t to ng 14 Your company‟s purchasing/supply planning is more competitive than other hi competitors.(PSP1) ep Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] w 15 Your campany‟s purchasing/supply planning can help to reduce inventory management n lo cost, lead time and logistics cost (PSP2) ad Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] ju y th 16 Your company‟s purchasing/supply planning plays a key liaison role to your customers in creating and delivering value.(PSP3) yi Disagree [ ] Undecided [ ] pl Strongly disagree [ ] Agree [ ] Strongly agree [ ] Disagree [ ] Undecided [ ] n Strongly disagree [ ] ua al 17 Your partners highly evaluate your company‟s purchasing/supply planning.(PSP4) Agree [ ] Strongly agree [ ] va 18 Your company‟s purchasing/supply planning impacts much to your company SCM and n Agree [ ] Strongly agree [ ] oi nh Sourcing Production (SP) Undecided [ ] m Disagree [ ] ll Strongly disagree [ ] fu finance performance.(PSP5) at 19 Sourcing production is one of your company‟s key strategies.(SP1) Undecided [ ] Agree [ ] Strongly agree [ ] z Disagree [ ] z Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] jm Strongly disagree [ ] ht vb 20 Your company‟s production capability can meet your customers‟ expectations.(SP2) k 21 Your company‟s sourcing production is aligned with your partner‟s strategy.(SP3) Disagree [ ] Undecided [ ] Agree [ ] gm Strongly disagree [ ] Strongly agree [ ] service and delivery improvement and flexibility.(SP4) Disagree [ ] Undecided [ ] Agree [ ] a Lu Strongly disagree [ ] om l.c 22 Your sourcing production is working effectively in terms of cost reduction, quality, Strongly agree [ ] n 23 Your company‟s sourcing production impacts much to your company SCM and finance va Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] y Internal Lean Practice (ILP) te re Strongly disagree [ ] n performance.(SP5) 24 Your company is effectively implementing lead-time reduction and wastes elimination program from product development and commercialization to mass production.(ILP1) 90 Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] 25 Your company is effectively implementing lean program to eliminating wastes and t to improving efficiency.(ILP2) ng hi Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] ep 26 Your campany is using less input to produce at a mass production speed, while offering more variety to the end customers.(ILP3) w n Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] lo ad 27 Your company strongly pushes partners to shorten lead-times and improve y th quality.(ILP4) ju Strongly disagree [ ] Disagree [ ] Undecided [ ] Agree [ ] Strongly agree [ ] yi pl 28 Your company‟s Internal Lean Practice impacts much to your company SCM and Disagree [ ] Undecided [ ] n Strongly disagree [ ] ua al finance performance (ILP5) Agree [ ] Strongly agree [ ] n va Supply Chain Performance (SCP) oi Undecided [ ] Agree [ ] Strongly agree [ ] nh Strongly disagree [ ] Disagree [ ] m from your customers (SCP1) ll fu 29 Your company delivers products with quality up to and over expectation of the standard at 30 Your company delivers products to customers on time (SCP2) Undecided [ ] Agree [ ] Strongly agree [ ] z Strongly disagree [ ] Disagree [ ] z Undecided [ ] Agree [ ] Strongly agree [ ] jm Strongly disagree [ ] Disagree [ ] ht vb 31 Your company delivers accurate volume of product to customers (SCP3) k 32 Your company delivers products to customers at minimum cost (SCP4) Undecided [ ] Agree [ ] gm Strongly disagree [ ] Disagree [ ] Strongly agree [ ] om Undecided [ ] Agree [ ] Strongly agree [ ] Strongly agree [ ] n Undecided [ ] Agree [ ] a Lu 34 Your customers are very satisfied with your services (SCP6) Strongly disagree [ ] Disagree [ ] l.c Strongly disagree [ ] Disagree [ ] 33 Your company achieves good business results this year (SCP5) va 35 Your SC is very flexible and be able to adapt to the customer various changing needs n Undecided [ ] Agree [ ] Thank you very much for your feedback! 91 Strongly agree [ ] y Strongly disagree [ ] Disagree [ ] te re (SCP7) Appendix Major Locations and partnership MAJOR LOCATIONS t to ng EUROPE hi ep adidas Group Headquarters, Herzogenaurach, Germany 01 adidas International Finance, Amsterdam, Netherlands 02 03 w adidas International Trading, Amsterdam, Netherlands n adidas Group Russia, Moscow, Russia 04 lo ad ju y th NORTH AMERICA adidas North America, Portland/Oregon, USA 05 yi 06 The Rockport Company Headquarters, Canton/Massachusetts, USA 07 pl Reebok International Headquarters, Canton/Massachusetts, USA ua al 08 n Reebok–CCM Hockey Headquarters, Montreal/Quebec, Canada va TaylorMade-adidas Golf Headquarters, Carlsbad/California, USA 09 n 10 ll fu Sports Licensed Division Headquarters, Canton/Massachusetts, USA nh 11 at adidas Group Asia, Hong Kong, China oi m ASIA z z 12 k jm adidas Group Latin America, Panama City, Panama ht vb LATIN AMERICA B C n adidas Official Outfitter of National Basketball Association IAAF Indoor World Championships, Doha, Qatar March 12 – 14, 2010 92 E y D te re Reebok Official Outfitter of National Football League NBA All-Star Game, Dallas/Texas, USA February 14, 2010 va NFL Super Bowl, Miami/Florida, USA February 7, 2010 n adidas Official Partner of European Handball Federation a Lu EHF Handball EURO 2010, Austria January 19 – 31, 2010 om adidas Official Match Ball Supplier A l.c Orange Africa Cup of Nations 2010, Angola January 10 – 31, 2010 gm MAJOR PROMOTION PARTNERSHIPS 2010 adidas Official Partner Boston Marathon, Boston/Massachusetts, USA April 19, 2010 F t to adidas Official Apparel and Footwear Outfitter ng hi Flora London Marathon, London, UK April 25, 2010 G ep adidas Official Sponsor UEFA Europa League Final, Hamburg, Germany May 12, 2010 H w n adidas Official Match Ball Supplier lo ICC World Twenty20, West Indies April 30 – May 16, 2010 ad I y th adidas Official Supplier of Australia and England cricket teams J ju UEFA Champions League Final, Madrid, Spain May 22, 2010 yi pl adidas Official Ball Supplier for UEFA Champions League French Open, Paris, France May 23 – June 6, 2010 ua al K n adidas Official Partner of Roland Garros 2010 FIFA World Cup™, South Africa June 11 – July 11, 2010 n va L oi m Official Match Ball Supplier of FIFA ll fu adidas Official Partner of Fédération Internationale de Football Association, MLB All-Star Game, Anaheim/California, USA July 13, 2010 M nh at Reebok Official Licensee of Major League Baseball fan and lifestyle apparel z N ht vb UEFA Super Cup, Monaco August 27, 2010 z and Official Authentic Collection Footwear Supplier adidas Official Match Ball Supplier jm 2010 FIBA World Championship, Turkey August 28 – September 12, 2010 k O om adidas Official Partner P l.c real,– Berlin Marathon, Berlin, Germany September 26, 2010 gm adidas Official Supplier n a Lu Sources: http://www.adidas-group.com n va y te re 93 Appendix adidas’s suppliers and factories location in the world No of suppliers (excluding No of own factories Total t to own factories) hi ep w 2008 2009 2007 2008 2009 2007 2008 2009 Asia 727 707 775 2 729 709 777 Americas 179 180 168 8 188 188 176 EMEA 168 164 185 3 171 167 188 1,074 1,051 1,128 14 13 13 1,088 1,064 1,141 n 2007 lo ng Region ad Total Country 2008 2009 14 10 9 268 308 59 77 50 64 63 Korea 62 Macao 62 63 61 52 z Japan at 48 nh Indonesia oi 52 m India ll fu Hong Kong n 264 va China n ua al Cambodia 2007 pl Bangladesh yi Australia ju y th Number of supplier factories per country z 10 k Mauritius jm 10 ht Malaysia vb Madagascar New Zealand gm Pakistan 7 Philippines 19 17 17 Singapore 1 Srilanka 16 11 Taiwan 30 28 27 Thailand 45 35 41 Viet Nam 66 63 63 Total Asia 713 698 775 om l.c n va y te re 94 n a Lu Sources: http://www.adidas-group.com/en/ourgroup/OurGroup_AreaStart.aspx Appendix adidas Key Asia suppliers t to adidas Key Asia suppliers Korea ng hi ep China Viet Nam Indonesia HSD EVV HVA HVV JHV HSS PWI PWV PRB SYF DAE WOO DAE WOON BAIKSAN SANFANG DAE WOO CN DAE WOON CN BAIKSAN CN SANFANG CN DAE WOO VN DAE WOON VN BAIKSAN VN SANFANG VN DAE WOO INDO DAE WOON INDO BAIKSAN INDO SANFANG INDO DAE WOO TW DAE WOON TW BAIKSAN TW SANFANG TW SHIN KWANG SHINWOO YOUNG IL SADESA PRIME ASIA WEITAI SHIN KWANG CN SHINWOO CN YOUNG IL CN SADESA CN PRIME ASIA CN WEITAI CN SHIN KWANG VN SHINWOO VN YOUNG IL VN SADESA VN PRIME ASIA VN WEITAI VN SHIN KWANG INDO SHINWOO INDO YOUNG IL INDO SADESA INDO PRIME ASIA INDO WEITAI INDO SHIN KWANG TW SHINWOO TW YOUNG IL TW SADESA TW PRIME ASIA TW WEITAI TW PACESS TW T1-Contract Footwear factories w n Synthetic Leather lo ad ju y th Leather Taiwan yi pl ua al DONGJIN INDO DONGJIN CN DONGJIN VN DAE WOO INDO DAE WOO CN DAE WOO VN SUK YOUNG INDO SUK YOUNG CN SUK YOUNG VN DAE YOUNG INDO DAE YOUNG CN DAE YOUNG VN JASE LONG JOHN JASE LONG JOHN CN JASE LONG JOHN VN INDO SHINTA W.S Lace/Webbing BOO YOUNG PAIHO DUCK IL YICHAO KOR BOO YOUNG CN PAIHO CN DUCK IL CN YICHAO CN Chemical DAE YOUNG DONG SUNG DAE YOUNG CN DONG SUNG CN DAE YOUNG VN DONG SUNG VN Other (TPU, Eyelet, Thread…) KFC SUN JIN SUNGHWA FRAMAS DAE SUNG JOON WOO GOLDEN TOP YIFA KOR KFC CN SUN JIN CN SUNGHWA CN FRAMAS CN DAE SUNG CN JOON WOO CN GOLDEN TOP YIFA CN KFC VN SUN JIN VN KFC INDO SUNGHWA VN SUN JIN INDO FRAMAS VN SUNGHWA INDO DAE SUNG VN FRAMAS INDO JOON WOO VN DAE SUNG INDO GOLDEN TOP YIFA JOON WOO INDO VN GOLDEN TOP YIFA COAST PHONG PHU INDO VN n Textiles DONGJIN DAE WOO SUK YOUNG DAE YOUNG JASE LONG JOHN n va ll fu oi m at nh BOO YOUNG VN PAIHO VN DUCK IL VN YICHAO VN TOAN HUNG VN DONGJIN TW DAE WOO TW SUK YOUNG TW DAE YOUNG TW JASE LONG JOHN TW FORMOSA T.S BOO YOUNG TW PAIHO TW DUCK IL TW YICHAO DAE YOUNG INDO DONG SUNG INDO DAE YOUNG TW DONG SUNG TW z BOO YOUNG INDO PAIHO INDO DUCK IL INDO YICHAO INDO z ht vb k jm om l.c gm KFC TW SUN JIN TW SUNGHWA TW FRAMAS TW DAE SUNG TW JOON WOO TW GOLDEN TOP YIFA a Lu Notes: This list includes key suppliers only and most of their company headquarter located in Korea n n va y te re 95