OTB and its companies are committed to maintaining and supporting a solid supply chain with a high level of know-how

OTB cooperates with more than 1,400 first-tier* suppliers located in 35 countries. 78% of them are based in Italy, percentage that rises to 85% considering the suppliers of the Group brands of the luxury segment, with an increase of 7% and 5% respectively comparing it to 2022. The Group's sourcing policy is designed to mitigate dependence on a limited number of suppliers, in order to effectively address any risks associated with interruptions in the supply chain.

In 2023, more than 80% of orders placed by the Group companies were in EMEA countries. For what concerns raw materials suppliers, we mainly work with partners located close to the headquarters of our Production Hubs:

Raw materials suppliers by geographical area:

*Tier 1 suppliers are suppliers with whom the Production Hubs have direct collaboration relationships. They are directly responsible for the supply of materials and components (regardless of the type of CMT or FF production model).

At OTB, we believe that fashion relies on its synergies with the supply chain, and Italy represents an excellent example of success. For this reason, in 2013 we launched the C.A.S.H. project (Credito Agevolato – Suppliers’ Help). Our programme allows suppliers to collect their receivables from OTB in advance through a bank and offers them the opportunity to benefit from extremely favourable economic conditions, thanks to the high creditworthiness of the Group that acts as guarantor. C.A.S.H. now involves 54 active suppliers who have sold 95% of their receivables. Total disbursements since the program began in 2013 amount to more than 610 million euro.

The companies of the Group are committed to analysing their supply chain, assessing suppliers’ social and environmental performance, either through the evaluation of audit reports made available or through the organisation of on-site third-party audits. In case of easily resolved non-conformities, a follow-up audit is scheduled to ensure that breaches are quickly resolved. For more serious, but not critical, non-conformities, suppliers are required to prepare an action plan for their resolution, to be implemented within a period of time that varies depending on the irregularity in question. Lastly, in the event of critical non-conformities or inaction and/or inability from the supplier to guarantee their resolution as planned, the Group companies contractually reserve the right to terminate the supply agreement.