ZARA's Methodology & the Supply Chain

Major fashion conglomerate Inditex, the parent company of ZARA, understands the importance of traceability in the supply chain. The brand is one of the top three companies in the Fashion Transparency Index which evaluates the transparency of the supply chain of the top 40 global retailers. Inditex has stated that “Traceability lies at the heart of our ability to guarantee that all the suppliers and manufacturers involved in the making of our products achieve our social, environmental, and health & safety standards. For us, traceability does not end with our first-tier suppliers –outsourced suppliers with whom we have direct business dealings–, but rather stretches all the way to the last link in our production chain” (Inditex, 2022, para. 2). Inditex ensures that all of their suppliers are transparent in which facilities and processes they use to produce their products. All suppliers and facilities are obligated to follow the company’s Code of Conduct and monitoring processes known as traceability audits. A traceability audit assesses the information the suppliers provided and analyzes it in comparison with production capacity and lead times. When an issue occurs during one of the audits, the sustainability and buyer teams collaborate to address the issues with the supplier. If the supplier does not fix the problem in a timely manner, then Inditex ends the relationship with said supplier (Inditex, 2022). Additionally, Inditex depends on their partnerships with third-party programs, such as The Ten Principles of United Nations Global Compact and ILO’s Better Work Programme, in order to make certain that they maintain their traceability levels and ethicality. These strategies allow the brand to have complete control over their supply chain.

In tier 2 of the supply chain, ZARA’s fabric production is outsourced to suppliers in Spain, Italy, Portugal, and Greece. The brand focuses on purchasing fabrics in bulk quantities that can be utilized for multiple designs and can be shipped to their stores quickly. When making bulk purchases, Zara chooses to buy mainly cotton, linen, polyester, and viscose which make up 90% of all raw materials purchased by the brand. In tier 1, after the fabric is sourced, it is then sent to manufacturing facilities in Spain, Europe, Asia, and Africa. Most garments end up being assembled and dyed in the main distribution center known as “the Cube” and then shipped to the Zara logistics hub in Zaragoza. Tier 0 involves shipping the garment to their selling locations. After arriving at the logistics hub in Zaragoza, the garment will be shipped to stores around the world both by truck and by plane.

Inditex has also recently started a new sustainability program called Closing the Loop. The program offers customers the opportunity to bring their used garments to stores or send them through the mail as a way of recycling clothes and giving them a second life. Along with Closing the Loop, ZARA is also working to reduce their environmental impact through a sustainable collection called “Join Life” claiming that all garments that bear the label are produced using the most ethical processes and sustainable materials (ZARA, 2022, para. 4). Overall, the brands goal is to have 50% of their merchandise in 2022 to be manufactured in accordance with the Join Life standards. By 2023, the company is hoping to be 100% plastic free as well as 100% zero waste.