Setting and opportunity management
Inditex is a multinational which operates in 88 markets, procures services in over 50 countries and employs over 137,000 people. It sells millions of garments every year, transporting stock from its logistics centres in Spain to all five continents. A global company, conscious of the impact its activity has on consumers, suppliers and their communities as well as on the environment and society. The Group therefore uses methods and teams to constantly analyze opportunities and uncertainties which may arise in order to reduce as much as possible the risks derived from its activities, both for the Group and for stakeholders and the environment.
HORIZONTAL ORGANIZATION
The Inditex business model is based on horizontal, flexible organization, focused on innovation and team work. This allows all professionals in the organization to participate in identifying global fashion, social, demographic and environmental trends, while remaining aware that the entire company is focused on the customer and the customer's needs. This enables a swift and efficient reaction to the identification of any trend that could aid the business in a sustainable way or that could affect the business.
Inditex professionals are aware that the information they deal with in their management area could be key to creating a competitive edge or soften a possible impact in the shortest time possible. As Inditex is committed continuously to improve its product in order to keep the customer's trust in the long-term, the entire organization is dedicated to creating quality fashion, in a constructive social environment with efficient environmental management and this is achieved thanks to a solid and flexible business model.
SUSTAINABILITY
Sustainability is without doubt one of the most relevant topics for any company’s future. In Inditex's case, sustainability is part of its business model and its daily activity and is the starting point for the development of guidelines in spheres such as long-term operations, management and strengthening of the supply chain, control of the Group's environmental impact and good practice in corporate governance issues.
With sustainability as both a great challenge and opportunity, Inditex identifies and incorporates global trends which affect its activity in the short and long-term thanks to multidisciplinary teams of over 80 nationalities and a risk prevention policy which applies to the entire organization.
GLOBAL AND INTEGRATED MARKET
Inditex has operated in international markets since 1989 although it was the beginning of the current century which saw its main international expansion. It currently operates in 88 markets with brick-and-mortar stores and in 27 with online stores. This global nature of its operations and its staff have proved the importance of understanding the world as a global and integrated market. In this respect, Inditex has opted for the multi-brand format and for new technologies as an alternative to communication in order to face the challenges of a global world.
Consumers are more and more informed and demand direct, personalized communication with companies. In response to this general trend, Inditex has invested in new technologies to provide an immediate response to customer demand and to possible changes in habits of consumption, the quality of its products (safe, healthy and sustainable) and to customer care. This is what Inditex describes as quality fashion in the long-term.
TRACEABILITY AND MANAGEMENT OF THE SUPPLY CHAIN
In a global world, guaranteeing the sustainability of all production processes means having an exhaustive map of the Group's entire supply chain. To ensure the traceability of the supply chain, Inditex uses efficient management tools and controls based on stable relationships with its suppliers, which assume transparency as a essential requirement for working with Inditex.
Stakeholders demand a sustainable supply chain and it is a responsibility that the company takes seriously. The company has been working for over ten years to ensure appropriate working conditions for employees producing its products, using tools such as the Code of Conduct for Manufacturers and Suppliers and the Compliance Programme.
Inditex has created a Strategic Plan 2014-2018 for a stable and sustainable supply chain, which, as well as continuous systemization and updating of analytical methods and optimization of the supply chain, also encourages dialogue and contact between all the relevant stakeholders.
CLIMATE CHANGE AND BIODIVERSITY
Mindful that natural resources, particularly water, are limited and also of the competition for key natural resources, since 2007 Inditex has put strategic environmental plans in place that, as well as attempting to mitigate the environmental impact of the Group's activity, also aim to contribute to the conservation of ecosystems and biodiversity. Inditex's Global Sustainability Strategy is present in all aspects of the Group's business model, with three main environmental strategies (Global Water Management Strategy, Global Energy Strategy and Biodiversity Strategy) and concrete actions in the value chain.
CORPORATE GOVERNANCE AND TRANSPARENCY
Inditex works with a concept of good corporate governance as the driving force to achieve the aim of net wealth creation in the long-term which is articulated through a management team which acts ethically and transparently and which is subject to internal and external verification and control.
Inditex uses a socially responsible business model, in an ongoing, participative dialogue to mutually benefit all stakeholders (employees, shareholders, customers, business partners, suppliers and civil society) connected to it.