SPAIN: Inditex increases non-EU European production
Retail giant Inditex sourced from more non-EU European suppliers during 2011, and cut the number of suppliers it used in Asia over the year, according to its recently released annual report.
The retailer, which owns the Zara fast fashion chain, added some 22 non-EU European suppliers last year - a rise of 19% to account for some 9.3% of its supply base.
It reduced the number of suppliers it used in Asia by 6.8% to 625 suppliers, accounting for some 44.7% of its supply base. In 2010, Asia accounted for around 45.8% of the company's supply base.
At the end of 2010, Inditex had 1,464 suppliers. In 2011, it did not use 440, added 466 and ruled out 92 for either breaches of its code of conduct or for commercial reasons. It ended the year with 1,398 suppliers.
Over the year, the number of suppliers that were awarded an A rating - which means they comply with the company's code of conduct - increased 8% to 573 suppliers. The number of suppliers with a B rating, which means they breach a non-relevant element of its code, increased by 12% to 501 suppliers.
The number of suppliers with a C rating, which means they breach a sensitive element of the code, rose slightly to 183 suppliers from 179. While the number of suppliers with a D rating, which means they breach a critical element of the code, declined to 107 suppliers from 146 in the prior year.
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