Supply chain of the Otto Group
Supply chains are globally branched and complex. The Otto Group addresses this challenge with numerous measures. This includes transparent reporting, for example by publishing factory locations.
The Otto Group sources over a million different products in the areas of fashion, living, and multimedia from more than 70 countries through its Group companies. The supply chain becomes increasingly complex the further one looks into the preliminary stages of production, particularly regarding the cultivation and processing of raw materials.
Since we do not own any factories, we collaborate with business partners who place orders with various factories. These factories operate independently from us. As a consequence, it is difficult for us as a trading company to exactly understand which upstream suppliers are involved in the production process.
The Otto Group is focused on increasing transparency throughout the deeper supply chain and making it more sustainable step by step.
The following graphic schematically describes a supply chain, introducing the individual players and providing an overview of the Otto Group's activities in each area of the supply chain.
Cultivation and mining of raw materials
The beginning of the value chain involves the cultivation and processing of raw materials. Examples include cotton cultivation, forestry, and metal production.
Processing facilities
Raw materials are processed, and preliminary products are created in preparation for final assembly. This process step includes activities such as spinning yarn, dyeing fabrics, or processing wood in sawmills.
Final production
Products are finalized and prepared for shipping. In textiles, this is referred to as the "Cut-Make-Trim" process, which involves cutting, sewing and finishing; for furniture products, this refers to final assembly.
Suppliers
This term refers to the actors with whom we have a direct business relationship. These include agencies, importers, or direct suppliers. The business partner acts as our gateway to the market, as they engage a network of factories to manufacture our products.
Factory locations
The publication of the locations of facilities that produce for the Otto Group is an important step towards greater transparency. An interactive map provides information about the most important manufacturers.
Many different factories worldwide produce for the Otto Group. The map shows exactly where these factories are located and also provides information on factory audits.