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Purchasing and Supply Chain Management Adidas

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Introduction

With the development of business, we can easily find that the role of purchasing and supply management has become increasingly important. Over the past years, as a discipline, purchasing and supply management has largely changed many companies. The significance of supply chain management is mainly due to the large cost on supply chain. ()On average, fully 70% of a firm’s sales revenues are spent on supply chain-related activities from material purchases to the distribution and service of finished products on the final customer. Other than that, there are several factors resulting in the evolution of supply chain management. First of all, in order to gain more market share, it is vital for companies, especially for multinational companies, to focus on building stable and effective supply chain as each segment of supply chain are likely to influence the products or service of companies. Moreover, the development of communications and transportation technologies, such as mobile communication and Internet, have forced the evolution of supply chain management.

The purpose of this essay is to explore the influence of supply chain management on companies. Also, both sustainability and risk management are crucial in supply chain management,

Objectives
Through journals, monographs and related theories and articles on the website of the search, organize and summarize, discussed the importance of the supply chain in the contemporary business. In addition, based on the case of Adidas, the most important aim is to provide an analysis of its purchasing supply chain management activities that makes clear the key strategic decisions it has made and their effect on its success or failure. discuss its impact on supply chain management, including sustainable development, and risk management.

Adidas (adidas) which was founded by is a German sports goods manufacturer Adidas AG's member companies. Its founder Adolf Dassler (Adolf Adi Dassler) named in 1920 near Nuremberg Herzogenaurach began production of footwear. August 18, 1949 to register the name of adidas AG. Adidas was originally set up by the two brothers parted ways after Adolf's brother Rudolf Dassler (Rudolf Dassler) opened a sports brand puma. Its classic slogan: "Nothing is impossible" (Impossible is nothing). March 2011, spent 160 million euros to enable a new slogan - adidas is all in (all out effort)

Literature review This section reviews literature on the theory of supply chain management, sustainable purchasing and supply chain management. Moreover, this part reviews literature on supply chain risk management.

1, As we all know that, the supply chain management plays an vital role for companies nowadays. It is common that companies from different industries claimed that they will focus on motivating the continuous evolution of the supply chain management in order to satisfy their customers and improve their performance. However, there still are many discussions on what exactly is supply chain management? As Simchi-Levi(2008) define:

Supply chain management is a set of approaches utilised to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.

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