Adidas Changes Its Supply Chain: Trying To Customize Business In Germany

Due to the sharp rise in labor costs in recent years and the demand for welfare after the awakening of the working class,

Are moving towards lower costs.

In Bangladesh and Kampuchea, some brands will also try to make progress due to the development of AI.

Move back to Europe and

In developed markets, once robot technology matures, it will undoubtedly be a disaster for China's supply chain enterprises, which have already been on the decline.

At the end of 2015, the German sporting goods giant Adidas AG (ADSG.DE) Adidas group launched Speed Factory, which was set up in Germany based on artificial intelligence, and the factory was considered to be an attempt for Adidas AG Adidas group to face the future.

Although Adidas AG Adidas group said that the innovation plant was not designed to solve the rising labor cost, it was only to satisfy personalized customers' new attempt to provide customized services.

However, including the world's most famous company, Apple Inc. Apple Corp, many developed countries have already begun to plan and even implement the move back to production. What is even more unexpected is that some Chinese supply chain enterprises have begun to hesitate to tax subsidies and unique resources to pfer factories to developed countries.

If the time comes back to the end of 2015, the Adidas AG Adidas group is not very convincing to try to use robots instead of high cost artificial labor. But in early 2016, the closure of Dongguan Xing ang Shoes Co., Ltd. became a landmark event in China's supply chain recession. About 2000 workers lost their jobs and pferred capacity. The PRD manufacturing industry, which once held up 75% of China's textile exports, was no longer proud.

According to the research group Boston Consulting Group (referred to as BCG) Boston Consulting Group's long-term tracking of manufacturing cost data, China's manufacturing wages increased two times over the past 10 years, from 4.35 US dollars / hour in 2004 to about 12.47 US dollars / hour in 2014, and by 2015, labor costs in China's manufacturing industry have accounted for 12% of the total cost, which is very close to 14% in Poland, while the cost of labor in the United States is 18% of total cost. Meanwhile, the cost of manufacturing in the United States increased by less than 30% to 22.32 dollars per hour in the 10 years of 2004.

According to BCG estimates, the average US $1 production in the US now costs 96 cents in China.