Supply Chain

Health & Safety - Target 1

To extend the safety officer registration and training to all directly sourced suppliers in Cambodia, Philippines, Thailand, Brazil and Argentina.

Why was this target chosen?

This target was established to fulfil the requirement under the adidas Group's 2006 Safety Officer Qualification and Registration Guidance Note supporting improvements in Health and Safety practices in our direct supply chain.

Argentine and Brazilian footwear suppliers were identified as new supply chain targets that would be integral to the completion of the global coverage of this registration programme.

What was the approach taken?

The 2008 Safety Officer programme was an extension of the existing training programme started in Asia during late 2006. The programme was a new launch for Argentina and Brazil.

Score

Asia:

75 percent

Americas:

10 percent

Notes

  • Asia: Completed in Cambodia, Philippines and Thailand; started in India
  • Americas: A list of supplier candidates has been developed and training is planned for 2009.

Barriers encountered along the way

In Brazil and Argentina there were not enough trainers with local language skills and training materials were not available in Spanish or Portuguese.

Conclusion

Where we were able to roll out the programme, the approach has worked well to improve health and safety management within the supply chain.

Lessons learnt in 2008

There have been some inconsistencies noted in the way the programme and materials are being delivered.

In addition, for some countries the turnover in trained staff has caused some setbacks in terms of the overall success of the training programme.

The diverse local and national regulations were not always considered during the programme's development and launch.

New target for 2009

Currently, the Safety Officer training material is being reviewed and revisions to the material will be undertaken as and where appropriate. The structure of the programme is also being reviewed and changes may be made in 2009. The plan to relaunch the programme in all Brazilian and Argentine footwear factories is on track for 2009.

Health & Safety - Target 2

To develop an e-Learning training platform to support the roll-out of the revised and updated version of the HSE Guidelines.

Why was this target chosen?

As the revised HSE Guidelines were being prepared, we considered how to improve the training and delivery of the updated materials. Online or e-learning based training would offer the necessary flexibility and opportunity

  • To ensure consistency in occupational health and safety training across all regions
  • To engage and interact more with the audience than a 'static' version of the Guidelines could do and
  • To give regular and repeat training to factory personnel even if SEA team members are not locally available.

What was the approach taken?

The concept of an e-Learning platform was dropped for all training sessions due to the timeline required to develop an appropriate hosting platform.

Score

0 percent

Barriers encountered along the way

The required lead-in times and the sizable budget that was necessary to implement the concept of an interactive online training platform - given the considerable high number of languages we operate in as a global company - influenced the project development and implementation.

Conclusion

Although the development of an e-Learning training platform was dropped due to limited resources, training materials will be distributed as electronic versions on discs to suppliers.

Lessons learnt in 2008

The ambitious target for online training was pared back and consideration was given to more resource efficient options, such as an interactive CD-Rom that can be distributed directly to suppliers. Also, finalisation of the guidelines ran behind schedule, further limiting the options available for roll-out and training.

New target for 2009

SEA will continue to critically examine and assess what would be the best platform for the delivery of HSE training to suppliers. Cost estimates are to be obtained for an interactive approach, and its usability will be tested. Our first priority, however, will be to have the guidelines and associated training materials translated into applicable local languages for the suppliers. Work has already begun on the Chinese language version of the draft guidelines.

Health & Safety - Target 3

To extend monitoring and reporting of volatile organic compounds (VOCs) at footwear factories in Brazil and Argentina.

Why was this target chosen?

This regionally specific target was identified to close the last remaining gap in the global target that all adidas Group athletic footwear suppliers monitor, measure and report on VOC emissions on the production floor.

What was the approach taken?

In 2008, Brazilian-based SEA and Group Operations staff coordinated briefings and monitoring activities at five footwear factories. There has been systematic VOC monitoring at three adidas footwear suppliers since Q1 and two of the Reebok local market suppliers in Brazil and Argentina started monitoring in Q4 2008.

Score

50 percent

Barriers encountered along the way

One hurdle for measuring and reporting VOCs is the different threshold value limits for the Group's occupational health guidance and recommended testing methodologies, compared with the requirements laid down in Brazilian national law. Another hurdle was insufficient resources to launch VOC monitoring at Rockport's footwear supplier in southern Brazil.

Conclusion

Measurement activities are well developed but the reporting process is still at a factory localised level.

New target for 2009

In 2009, the most important target will be to marry up the expectations of the Brazilian regulatory authorities with the Group's Guidelines on Health, Safety and Environment. This will enable VOC reporting to Group level as well. Factory coverage should be enhanced to support VOC monitoring activities at Rockport's footwear supplier.

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Within this report
KEY
  • 0%: no progress
  • 10%: initiated
  • 25%: partly complete
  • 50%: good progress
  • 75%: substantially complete
  • 100%: fully complete