vip：HM供应商分类
Manufacturing factories
These are factories that are either owned or contracted by our suppliers to make our products. Normally, these are so called “cut and sew” factories where the final manufacturing takes place. One supplier can own or contract one or more factories. All of them are covered by our Full Audit Program. Over the last two years, we have developed a new programme for assessing the sustainability performance of our suppliers and support them even better. We call this even stronger partnership approach SIPP (Sustainable Impact Partnership Programme).
Processing factories
Not all factories possess the required facilities for making certain products - for example creating prints, washings or embroideries etc. In these cases, the suppliers can outsource specific tasks to so called processing factories. This is considered subcontracting and must be announced to H&M. We require that all processing factories are approved by our auditors. After approval, we approach the processing factory in the same way as any other factory making products for and include them in our Full Audit Programme, and going forward, in SIPP. A processing factory is often contracted by more than one supplier. In some cases, one factory can be both a manufacturing factory and a processing factory. For example, when a manufacturing factory has certain production processes like in-house washing and offers this service to other manufacturing factories.
Fabric & yarn mills (second tier suppliers)
Fabric and yarn mills source fabrics and yarn to our supplier factories. These are the second tier suppliers. Normally we do not have direct business relationships with the mills. Nonetheless, we are working more and more to increase our influence and to support improvements at various stages of the Supply chain. Securing an additional and widely unique level of transparency by disclosing the names and locations of fabric mills is one way. At the same time, we are integrating the most important fabric and yarn mills into our audit programme and also into our supplier-relationship management strategy.
Platinum &gold
Suppliers graded with platinum or gold are our strategic partners and preferred suppliers. They make around 60% of our products. They benefit from long-term partnerships including incentives such as joint capacity planning up to five years ahead. This allows their factories to use their capacity as efficiently as possible and gives them greater planning security. Only suppliers with the best performance in all areas, including sustainability, can become such strategic partners. And we work very closely with them to together become better every day, for example through trainings, workshops or even joint investments.
Silver
Silver suppliers are suppliers that we have long-term oriented and close relations with. We provide, for example, joint capacity planning up to one year ahead. We work closely with them and evaluate and discuss their performance regularly, providing training and support for further improvements.
Others
These are supplier and factories that we just started working with (for less than a year) or that we might just have placed a test order with. This also includes suppliers that make products that we order very rarely and therefore cannot build long-term relationships and where consequently our influence is weaker. Our experience shows that the sustainability performance increases with the length and intensity of our partnership. Therefore, we evaluate new suppliers and new factories very thoroughly to decide if after an initial testing period they have the potential and willingness to, with our support, improve further.
Product type
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vip：For many years, we have worked hard to build strong, long-term relations with our suppliers, based on mutual trust and transparency. This allows us to disclose the names, names, locations as well as some additional information of their factories without major concerns about the ongoing competition on the best available production capacity in our industry.
On the contrary, our experience shows that this step incentivises our suppliers for increasingly taking ownership over their sustainability and that it recognises the progress they make.
The supplier map includes first tier manufacturing supplier factories that account for about 98.5% of all commercial pieces produced for the H&M group. Additionally, it includes all processing factories, which can be subcontracted by our first tier manufacturing supplier factories for specific tasks. In 2015, we expanded the scope of the list further and as the first major fashion brand we now communicate the names and locations of the most important mills that provide our suppliers with fabrics and yarns.These are fabric and yarn mills making about 60% of the pieces produced for the H&M group.
Our aim is to update the list every three months. Since we occasionally test new factories, enter new partnerships or might have to phase out any factories, changes may occur and will be included in the forthcoming update of the supplier list.
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