Don't break the chain

Adidas worked with Indian suppliers to improve compliance with social standards

“Sports equipment and clothing retailer Adidas managed rapid improvement among its suppliers in India. In 2010, about 80% of the vendors didn’t meet the company’s social compliance standards; in 2011, more than 80% met those performance goals. The company says the achievement resulted from working directly with the suppliers and setting strong targets.”

Taken from the Supply Management article, Adidas Turns Indian Supplier Performance Around, we gain valuable insight from the company’s success. Turning the performance of supply chain around in a very short time, Adidas realized an almost unbelievable improvement in their corporate social responsibility in just one year. The company monitored and realized significant improvement in the following six areas:

• Management Commitment and Responsiveness
• Management Systems
• Worker-Management Communication and Industrial Relations
• Compliance Training for Workers and Management
• Transparency in Communication and Reporting
• Compliance Performance

The above example reveals that today’s sustainable supply chain organizations are focused on integrating sustainability concepts directly into their purchasing processes. These efforts are designed to not only improve supply chain performance but also to establish the next-generation sustainable supply chain management. “Leading companies recognize the importance of bringing their supply chain in line when planning sustainability strategies.” ~ Supplying Sustainability: Real Leaders Must Look down the Chain