Apache says sourcing in India could slash lead times for adidas

10/02/2011
Indian footwear manufacturer Apache is aiming to double its production of shoes for adidas by 2014. The company currently makes around 400,000 pairs of adidas shoes a month at its factory in Nellore. It has 6,300 employees at the factory at the moment.

One of the key components of its strategy for doubling production is to set up a supply centre on its Nellore site. Head of the company, Philip Chen, has said he wants to persuade adidas to allow Apache to use materials sourced on the Indian market. At the moment, the company is obliged to import materials and components from China, Vietnam and Indonesia. Mr Chen argues that having suppliers closer to the footwear factory will enable his company to reduce production lead times from two months to five days.