Mapping upstream and downstream value chain

In contrast to our contractual suppliers, the tiers beyond (our suppliers’ suppliers) are dynamic and in large numbers. Our suppliers’ suppliers are not directly in contact with hummel and are selected based on the needs of our contractual supplier and the individual products they offer to a negotiated price. These can be dyeing houses, print houses, trim suppliers, dye suppliers, polybag suppliers, cardboard box suppliers, fabric mills, yarn mills and raw material providers. We require that our tier 1 supplier, often the assembly factory and the factory we have a contractual relationship with, pass our code of conduct to them, as well as instilling their own requirements towards their suppliers. While our overview and leverage is limited, our responsibility for the lower tiers in our value chain remains. Several of our suppliers have vertical set-ups which means that they process the raw material, knit or weave the fabric, dye, print and cut the fabrics, and finish the products themselves, we also use nominated supplier in some cases.

Currently we are in the process of mapping our suppliers beyond tier 1, focusing on the value chains of the bestselling items. This is naturally a constantly changing goal post, with new products being introduced regularly. The mapping is therefore a continuous process to 'capture' the majority of our supply chain. 

We are furthermore mapping and monitoring our downstream value chain as we are increasingly taking responsibility for the end-of-life process of our textiles by investing in reselling and recycling. 

Illustration of the upstream supply chain

Illustration shows the upstream supply chain