The Otto Group sources more than one million different products from over 70 countries via its Group companies. The deeper one looks into the preliminary stages of our supply chains, i.e. towards the cultivation and mining of raw materials, the more complex and branched it becomes.
As we do not own factories, we cooperate with business partners (so-called suppliers), who in turn place orders with different factories. They operate independently of 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 its global supply chain and making it more sustainable step by step.
The following graphic schematically describes a supply chain. It introduces the individual players and provides an overview of the Otto Group's activities in the single areas of the supply chain.
Cultivation and mining of raw materials: This is the beginning of the value chain. Examples are cotton cultivation, forestry and metal production.
Processing factories: The raw materials are processed, preliminary products manufactured and prepared for final production. This process step includes, for example, spinning yarn, dyeing fabrics or processing wood in the sawmill.
Final production: The products are finalised and ready for dispatch. In the case of textiles, this is referred to as the "cut-make-trim" process, i.e. cutting, sewing and finishing; in the case of furniture products, this is the final assembly.
Suppliers: By this we mean the players with whom we have a direct business relationship. These are, for example, agencies, importers or direct suppliers. The supplier is our gateway to the market, as he commissions a network of factories to manufacture our products.
The publication of the locations of factories 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. The darker the colour coding, the more important the country is for the Otto Group's sourcing activities.