1. Identification of the supply chain

The Inditex supply chain in 2013 was made up of 1,592 suppliers in 46 countries. Inditex’s commitment to ensuring the proximity of suppliers is reflected in the fact that 51% of production has its origins in suppliers located near Inditex’s headquarters in Spain.

Inditex supply chain in 2013 (*)

Geographic area	Suppliers with purchase 2012	Not used 2013	New in 2013 (**)	Suppliers with purchase 2013
Africa	112	22	34	124
America	68	13	27	82
Asia	672	176	242	738
Europe (non-EU)	136	36	51	151
European Union	446	78	129	497
Total	1 434	325	483	1 592

(*) Suppliers of fashion items, mainly clothing, footwear and accessories, with a production of over 20,000 units/year. Suppliers with smaller production account for 0.59% of the total production.
(**) Includes textile suppliers with purchase in 2012, but which were not included in the scope of that year.

Traceability	Systems update	Pre-assessment
IDENTIFICATION (highlights in 2013)

Traceability

Inditex incorporated the traceability of its supply chain into the Code of Conduct for Manufacturers and Suppliers in July 2012. In 2013 the related control instruments being developed by the Corporate Social Responsibility (CSR) teams to assure identification and control activities throughout the provisioning process were strengthened and developed.

Further information at http://www.inditex.com/en/sustainability/suppliers/compliance_programme

Updating of the Manufacturer Management System

In 2013, a brand new on-line system was established, designed specifically to cover Inditex’s traceability needs. All of the suppliers in the supply chain manage their portfolio of manufacturers and exchange updated information on them with Inditex.

This new system is integrated with other company tools, such as the order platform used by the purchasing teams and the internal supplier supervision tool available to the CSR teams. This allows both Inditex’s purchasing and CSR teams and the company’s suppliers to share reliable, complete and updated information.

In 2013, numerous seminars and training sessions were held with suppliers. The aim was to familiarise suppliers with the new system and raise their aware of the importance of production traceability. A total of more than 1,100 suppliers (73% of the total) attended one of the face-to-face sessions.

Suppliers trained in production traceability

Geographic area	Suppliers trained
Africa	25
America	46
Asia	840
Europe (non-EU)	134
European Union	124
Total	1 169

Pre-assessment

Pre-assessment is one of the first steps in the Inditex Code of Conduct Compliance Programme, and consists of a preliminary assessment of potential suppliers and factories. These assessments are performed by internal and external auditors without prior notice. Only those meeting the requirements established by Inditex in its Code of Conduct can enter the supply chain.

In 2013, some 1,425 pre-assessment audits were performed on potential suppliers and factories. Two out of every three were considered suitable to produce for Inditex. From that moment forth, they are subject to the Code of Conduct and to the standards set out in the Inditex Minimum Requirements.

Pre-assessment by region

Geographic area	General total	% approved
Africa	37	57%
America	15	53%
Asia	674	54%
Europe (non-EU)	341	67%
European Union	358	88%
Total	1 425	66%

The integration of the pre-assessment process into Inditex platforms and databases was completed during 2013. A specific application was developed which provides the purchasing team with updated information on the status and result of these assessments of the Group’s potential suppliers.

The integration and availability of data, as well as the speed with which visits and assessments are performed, means that the Pre-assessment Programme supports for Inditex’s business model and adapts to its needs.

Further information at http://www.inditex.com/en/sustainability/suppliers/compliance_programme