Adidas to rethink supply chain if subject to US trade tariffs, says finance chief
Adidas would go back to the drawing board and rethink its supply chain if its products become the target for US trade tariffs, according to its financial chief.
The admission came after reports last week that Donald Trump is preparing a raft of anti-China tariffs on Chinese imports to the US, which would affect have a marked affect on Adidas.
The company outsources production to more than 100 factories in China, with 68% of its production coming from Asian countries.
But in an interview with CFO Journal the sportwear giant’s Chief Financial Officer, Harm Ohlmeyer commented: “If it [tariffs] would ever happen, we would go back to the drawing board and start again.”
He added that all of the industry, not just Adidas, would be forced to make changes to the supply chain.
“If it is coming, it would come for the whole industry. We are not isolated,” he said.
The report said the company has designs on growing its share of the US sportswear market from 10% to 15%.
In the interview, Ohlmeyer revealed that Adidas wants to grow revenue generated by third party retailers and by stronger sales via its own online retail channels, saying that as customer trends change the importance for bricks and mortar is decreasing.
“The consumer is going digital; my kids grew up with an iPhone and expect every brand to be on there,” he said.
Gartner: Women in supply chain at five-year high
Women now represent a greater percentage of the supply chain workforce than at any other point in at least the past five years, according to a recent Gartner survey.
The Women in Supply Chain Survey 2021, conducted by Gartner and Awesome, surveyed 223 supply chain organisations with more than $100m in annual revenue from February through to the end of March 2021.
- Women represent 2% more of supply chain workforce than in 2020
- Women now account for 42% of the workforce
- Number of women in exec-level positions declined by 2%
- Just 15% of top leadership are women (17% in 2020)
- 84% of organisations say COVID-19 did not impact efforts to advance women
It found that women now represent two per cent more of the supply chain workforce than in 2020, accounting for 42%, compared with 39% last year. Dana Stiffler, Vice President Analyst with the Gartner Supply Chain practice, says the impact of COVID-19 on supply chain was significant, though different to other sectors.
"Contrary to other industries, supply chain’s mission-criticality during the COVID-19 pandemic has meant that many sectors did not reduce their workforce, but rather continued to hire and even faced talent shortages, especially in the product supply chains," she said. "This resulted in many women not only standing their ground in supply chain organisations but increasing their representation in organisations. We also recorded a record number of specific commitments and supply chain-led actions and saw existing programs starting to pay off."
Supply chain still lacks women in executive leadership
But the elephant in the boardroom remains. Though the figures present a positive step towards greater diversity and gender equality at all levels, the number of women in executive level positions declined by two per cent in the past year. Women represent just 15% of the upper echelons of supply chain leadership. Gartner did however record a rise in women at all other levels of leadership.
The vast majority (84%) of organisations surveyed said the outbreak had no discernible impact on their ability to retain and advance women. But more than half (54%) admitted that retaining mid-career women was becoming increasingly difficult. A lack of career opportunities was cited as the biggest challenge to this, while other blamed a lack of development opportunities.
Despite these challenges, companies of all sizes are becoming broadly better at gender diversity. Around a third more said they had a targeted initiative focused on attracting women and advancing their careers.
Stiffler said a push towards measurable and formal initiatives is at least pointing in the right direction: “It's encouraging to see that the larger share of this jump was for more formal targets and specific goals on management scorecards. For these respondents, there is greater accountability for results — and we see the correlation with stronger representation and inclusion showing up in pipelines.”