Innovation Vital Transformation
Innovation Vital Transformation
4.3.
Innovation,
vital for
transformation
Innovation, a linchpin for Our innovation activity is aimed at improving the
transformation, is built into Inditex’s customer experience and strengthening cus-
tomers’ trust every time they choose us. This trust
DNA. Ongoing improvement
is based on the efficiency of our processes and the
stems from our ambition to satisfy quality of our products. But we are mindful that it
our customers in every aspect also stems increasingly from such important intangi-
of their relationship with us. The bles as sustainability, health and care of our people,
convergence of technology and the community and the planet.
our open innovation model, which
Innovation is crucial to achieving a sustainable trans-
fosters the recruitment of talent and
formation of the industry. Accordingly, our innovation
the attraction of ideas, enables us to model is cross-cutting, flexible, collaborative and
ensure the success at every stage of open, not only to all the Company’s areas and people,
the shopping experience. but to any organisation, entity or person with a differ-
ent idea or disruptive proposal that helps build a bet-
ter and more sustainable present and future.
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| Statement on Non-Financial Information 2021 | 4. Transforming with a unique model
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find them. We can then estimate the volume of ini- IOP (INDITEX OPEN
tial shipments required for each store, forecast the PLATFORM)
demand curve and thus determine the necessary enables us to respond to
stock to guarantee availability. In this respect, this the Group’s requirements
year the Company has developed a new model to
of flexibility, speed and
calculate the number of units to be included in the
first shipment to optimise the success of the initial
performance.
shipment and prevent stock-outs.
We used AMRs to automate Zara.com e-commerce IOP is a living platform that is constantly being
stock at the Marchamalo centre. Through the de- evolved, continually adding new functionalities that
sign and roll-out of a Goods to Person (GTP) solu- enable us to offer an integrated experience so that
tion based on AMR technology, 500 autonomous our customers can shop as they choose: in-store,
robots support the operators in tasks linked to the online or easily and transparently combining the two
receipt, storage, picking and auditing of the cen- with a simple click.
tre’s stock. The robots move 13,500 shelves stor-
ing a total of 4.5 million units. While operating, they Its open and modular design enables all the Com-
reliably bring the shelf chosen by the Warehouse pany’s areas to adapt their processes to customers’
Management System (WMS) to the operators, with needs in real time and to respond to their prefer-
the articles required in each case. Thus, the oper- ences, contributing to our aim of improving their
ators need to cover less distance to perform their experience. In fact, IOP enables us to respond to
work, boosting productivity and enhancing the the Group’s requirements of flexibility, speed and
quality and experience of their role. performance by constantly adopting new technol-
ogies, work practices and organisation.
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| Statement on Non-Financial Information 2021 | 4. Transforming with a unique model
From a technological standpoint, its architecture develop or adapt it to suit our business objectives
of independent but interconnected micro-services and place it at the service of our customers and our
can be integrated with next-generation business people. In fact, technology is the link in the chain
modules to make applications easier to scale and that enables us to complete the circle of collabora-
faster to develop. tive innovation. In other words, to materialise the
ideas that emerge in all the Company’s areas.
When it comes to work practices, the application
programming interface (API) and the adoption of A reflection of our constant commitment to the
internal, open-source code boost collaboration search for the latest innovations and technological
between Inditex teams and make for a more seam- applications is the launch at the end of 2021 of our
less collaboration with third parties, be they major Open Innovation Logistics Hub. With this initiative
software organisations or individuals with singular we pursue the creation of a structured model of
knowledge of specific applications. open innovation in relation to the latest technolo-
gies and innovative solutions in the logistics area.
Moreover, they enable us to offer a friendlier cul- Through the Hub, relationships are established
ture for our developers, giving them greater insight with all the actors in the ecosystem - such as start-
into the value they provide to our customers and ups, research centers and universities, entrepre-
increasing our capacity to attract talent. neurs, technology companies and even other com-
panies - to enhance the innovative capacity of the
Some examples of how the Inditex Open Platform industry and collaborative development in a sus-
improves integration that can be seen directly by tained manner in the long term.
our customers are the Store Mode, Pay&Go and
Shop&Go functionalities. Flexibility, agility, scalability, resilience, integra-
tion, security and learning are the terms that best
Throughout the year, we have launched and re- define our day-to-day reality on the technological
fined numerous projects to offer a more agile front and lend meaning to our purpose. The latest
shopping experience. In this sense, Massimo Dut- developments in systems in the Operations area
ti’s new Shop&Go service stands out, which allows are evidence of this. In 2021 Inditex launched a
customers to make purchases from their mobile transformation process which, based on data pro-
phone without going through the checkout, also vided by the various tools and systems of which the
choosing where and how to receive their garments. Company’s technological ecosystem is comprised,
In addition, we have also made a mobile point of improves the experience of both application devel-
sale available to our customers in stores to provide opers and customers in stores. Examples include
a complete shopping service for the launch of new creating applications to control the number of
spaces such as Zara Beauty or new collections such people inside stores and oversee virtual queuing
as Zara Origins. so that customers do not have to wait in person, or
improving the operating efficiency of the store de-
vices to prevent waiting times.
4.3.3. Technology for But our technological advances have not focused
solely on the Operations area. The latest devel-
boosting the efficiency of opments in data management systems, consist-
our operations ing of the technological transformation, evolution
and creation of tools and disruptive data collection
GRI 103-2 AND 103-3
systems, and data management and analysis, which
Our capacity for change has a great deal to do with help us to make smart decisions based on data that
technology. The digital transformation we have been is updated daily at the global level.
undertaking in the last few years, and in particular in
2020 and 2021—despite the covid-19 pandemic— In this regard, our Data Processing Centre (DPC)
enables us to develop initiatives and projects that is an unrivalled benchmark of our capacity to inno-
place us at the forefront of the industry in purely vate for ourselves, our customers and the environ-
technological aspects such as channel integration, ment. The technology deployed at the new DPC
anticipation of demand and stock management. It also reduces energy consumption and, therefore,
also gives us the edge in other, more intangible are- boosts energy efficiency.
as, such as the well-being of our people and commu-
nities and care for the planet. The new DPC extracts the very best performance
and stores all the data handled by the Company in
To achieve this we harness state-of-the-art technol- keeping with the most stringent security standards.
ogy: artificial intelligence, machine learning, cloud The building is certified to Uptime TIER IV Design
computing, IoT, Business Analytics, and so on. We
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and Build standards, ensuring maximum reliability ments so as to know their real-time location and
and availability, and an infrastructure that is fully make the process of receiving them in stores more
outage-tolerant, with duplicate electric power and agile and accurate using mobile scanning.
climate control systems. Furthermore, as part of
Inditex’s commitment to the environment, the DPC With a view to optimising processes, we have de-
uses green technology with a Power Usage Effec- veloped a comprehensive advanced facility man-
tiveness (PUE) score of under 1.3 (1.0 indicates agement system which, by integrating our current
100% efficiency), thanks to the deployment of best tools for managing incidents, maintaining infra-
practices and the optimisation of infrastructure. structure and using Inergy, expedites the operat-
ing, administrative and financial management of
Also equipped with state-of-the-art and sustain-
able technology, the new Zara.com building rep-
resents a milestone in terms of architecture and
advanced communications. 5G and wifi 6 coverage
make communications up to 10 times faster and 2021 MILESTONE
more reliable than using LTE (Long-Term Evolu-
tion). Thanks to wifi 6, scope and coverage are very The new Zara.com building was inaugurated in 2021.
high, optimising the performance of alldevices con-
These facilities, spanning more than 67,000 m2 and
nected to the network.
featuring the latest advances in technology and
Automation is one of the goals of implementing sustainability, house the new Zara.com studios and
technology. Over the course of 2021, we continued the Design Centre for Zara Man. The new building is
or launched projects to significantly improve our a milestone for advanced communications, with 5G
operating processes. The automatic restocking of and wifi 6 coverage to achieve communications up to
material in stores is one such initiative. The new
10 times faster and more reliable than using LTE (Long
model will replace requests that are currently han-
dled manually by stores with a refined algorithm to Term Evolution). Thanks to wifi 6, scope and coverage
calculate the stores’ requirements. This will reduce are very high, optimising the performance of all devices
the administrative burden in stores and central ser- connected to the network.
vices alike. At the same time, we have enhanced the
traceability and receipt process for material ship-
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| Statement on Non-Financial Information 2021 | 4. Transforming with a unique model
store facilities. Accordingly, incident management defined aspects: improving the real-time availabil-
uses a parametrised traffic light system incorpo- ity and accessibility of information; and securing
rating automatisms to swiftly identify and resolve 100% effective integration of our applications, also
incidents based on their criticality. It also affords making them mobile.
us the capacity to anticipate incidents in certain as-
sets; in other words, predictive maintenance. With this in mind, over the course of this year, we
have migrated our information systems to the
Our commitment to technology also encompasses cloud, moving from a segregated repository to
our relations with suppliers, control of raw mate- one that is centralised, much more effective and
rials and of energy, and even the development of in keeping with business needs. This migration
new messaging and communications technologies, also enabled us to evolve the system, allowing us
such as the Inline project to eliminate the use of to provide each area of the Company with the data
telephones, freesets and walkie-talkies in stores. it needs in real time, thereby facilitating decision
making. The new system encompasses more than
The Group’s constant efforts to achieve full digital- 100 collaborative cloud workspaces.
isation have led us to focus strongly on two clearly
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The availability of real-time data has also enabled of on- boarding and digital contract signing, the
us to launch another two projects: ONE, for re- former implemented in stores in Spain, and the lat-
al-time sales tracking, and the integrated store ter in Spain, the Netherlands and Germany.
management tool, to show stores the sales indica-
tors most relevant for them in real time. In the realm of training, our commitment to digitali-
sation paved the way for the international launch of
the Tra!n learning platform, a virtual, modern and
agile space to which our teams worldwide can con-
4.3.4. Projects and tools for nect. There they can access a broad range of train-
our people ing content such as product and fashion, culture and
values, health and safety or sustainability, among
GRI 103-2 AND 103-3 others. The content is produced both internally, har-
Innovation is a crucial value at Inditex that helps us nessing and sharing the know-how of our staff, and
to strengthen the trust that both customers and in partnership with leading educational institutions.
the people who work directly or indirectly with the More information in section 5.1. We are collaborating with
Company have placed in us. Innovation enables us our people, the engine of that transformation of this Report.
to research, develop and realise a multitude of pro-
jects with which, ultimately, we aim to improve the Furthermore, to improve our people’s health and er-
quality of life of our people and the communities gonomics and to optimise their time, we have imple-
Inditex relates to. mented an automatic rotation system in logistics
tasks which, based on our Orquest staff scheduling
We put a premium on fostering values as important tool and on artificial intelligence, switches the duties
for us as sustainability, diversity, responsibility and performed by operators at distribution centres.
transparency, harnessing technology and the know-
how of our human capital for this purpose.
Well-being at our headquarters
Innovation enables us to boost well-being at our
Our people headquarters in the broadest sense: comfort, effi-
The people who work at the Group are key to plac- ciency, sustainability, architecture and occupation-
ing all of our innovative skill at the service of cus- al health, among others, and we have implemented
tomers, but also to keep learning, progressing and a number of projects at all of them in 2021. Exam-
growing. Accordingly, in 2021 we have devised sev- ples include the latest construction techniques
eral initiatives linked to unlocking their potential and and architectural concepts aimed at achieving
nurturing their talent in a wide range of spheres. maximum environmental efficiency in buildings
One example of this is the launch of the Inditex Ca- and headquarters, while at the same time boosting
reers chatbot in Instagram. This recruitment chatbot the comfort and, as a result, the quality of life of the
helps candidates to register for our job vacancies people using them.
and set up their profile in Inditex Careers in a simple,
fast and friendly way. Likewise, the Company has undertaken research
into new building solutions for developing smart,
sustainable and efficient offices. On this basis,
People are crucial we have refurbished the Bershka headquarters,
for achieving applying wholly innovative proposals for employ-
ee comfort and for optimising their daily activity,
our innovation while at the same time meeting strict efficiency
potential. and sustainability requirements. The building re-
quired a series of technological updates, such as
the specific design of structural components to en-
Also in connection with recruitment, this year we sure top-quality acoustic properties, or the design
have opted to digitalise interviews via Team Plays, of a highly energy-efficient lighting system. Both
online interviewing and the VideoAsk extension of these signalled a key scientific and technical im-
for external candidates, as well as the processes provement for the Company.
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| Statement on Non-Financial Information 2021 | 4. Transforming with a unique model
We are a community
Social innovation is a part of who we are. Our goal Lastly, in 2021 we undertook two initiatives of sig-
is to develop and apply solutions to satisfy social nificance for the Company linked to people in our
needs in an efficient and sustainable way. In this supply chain and, therefore, in the field of social sus-
regard, our community investment programme is tainability: arranging the use of a tool to measure
structured around three main axes: identifying new projects’ social impact and, as a result, to stand-
social needs, developing solutions to help respond ardise project management in the supply chain.
to them, assessing their efficacy and extending
those initiatives that have proven to be effective.
Our work for the community would not be possi- 4.3.5. Projects for the planet
ble without the direct engagement of stakeholders
GRI 103-2 AND 103-3
such as local and international organisations, gov-
ernments, trade unions, academic institutions and For Inditex, it is a non-negotiable pre-requisite that
representatives of civil society. Consequently, we our innovation must positively impact the planet for
establish partnerships with each of them that enable the present and future. We are convinced we must in-
us to join forces and launch innovative initiatives in novate not only in aspects directly linked to our Com-
fields as varied as research into new diseases, im- pany, but taking a 360º approach aimed at developing
provement in the provision of water and sanitation solutions to allow us to help preserve the planet for
in developing countries, and research programmes generations to come.
in the field of education and the social economy.
In this context, a key aspect for us is to be able to im-
The Zara Tribute project represents a social initi- plement our environmental solutions throughout our
ative aligned with our commercial activity, based supply chain, for which purpose, again, we establish
on the launch of limited edition collections linked strategic partnerships with our collaborators.
to social causes. Zara’s first Tribute collection,
called “Icons by Peter Lindbergh”, is a project that Our actions in innovation to minimise our impact on
features iconic photographs by legendary pho- the planet encompass a broad range of goals: reduc-
tographer Peter Lindbergh and curated by crea- ing polluting emissions, water and textile consump-
tive director Fabien Baron. 100% of the proceeds tion and cutting the carbon footprint. We structure
from this collection go to the Franca Sozzani Fund these actions upon two main axes: circularity, and
for Preventive Genomics, with the aim of financing safe and sustainable products.
the Global Babyseq initiative, a human genome se-
quencing project that seeks to support research
and innovation in predictive medicine in collabora- Circularity
tion with Brigham and Women’s Hospital and Har- The circular economy drives us. We are constantly
vard Medical School. seeking tools and solutions that help us minimise the
negative impacts of our activity throughout the life
And in the medical field, our alliance with Doc- cycle of our products: fibres, processes, use and end
tors Without Borders is also framed. We invest of life. With this in mind we set up the Sustainabili-
in research projects for the response to new dis- ty Innovation Hub, our open innovation platform, a
eases and the development of new care protocols fundamental reference underpinning our respectful
that contribute to the improvement of community approach to the planet. Through this platform we
well-being. During 2021, projects such as POCUS tirelessly seek and develop new and more sustain-
(point-of-care ultrasound), Patient Multimedia able raw materials and fibres and, in many cases,
Engagement toolkit or the Mobile Outbreak Lab, we do so through collaborations with cutting-edge
among others, have stood out for their innovation. start-ups involved in multiple aspects of textile pro-
More information in section 5.7. We are collaborating to duction: materials, processes, end of life, micro-plas-
generate value in the community of this Report. tics, traceability, etc. In fact, some of the most disrup-
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Our commitment to innovation throughout the value chain
and life cycle of our products is aimed at fostering and
supporting the achievement of our sustainability objectives.
tive projects to have emerged in 2021 were a result bility projects in the sector; and our partnership
of such collaborations. For example, LanzaTech, an with Quantis to build on its experience in life cycle
initiative in the field of research into raw materials. analysis and use its impact measurements with the
M ore information in section 5.4. Collaborating to startups we partner.
transform through sustainable management of our products
of this Report.
Safe and sustainable
We have also reached a number of agreements re- manufacturing
sulting in collaborations, such as the one with the
accelerator Plug and Play to identify those start- Making our products in a safe and sustainable man-
ups that best contribute to our main objectives and ner is non-negotiable for Inditex. Products must be
organise work with them; the agreement with the safe for both the people who make them and those
innovation platform called Fashion for Good, in who receive them, our customers, and must also
which we work with other major players in the fash- be environmentally sustainable. To achieve this,
ion business to foster the acceleration of sustaina- the Company works with leading technology and
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| Statement on Non-Financial Information 2021 | 4. Transforming with a unique model
science companies, and internationally renowned (dyeing and printing); the joint exploration of sustain-
technological experts, to better understand the able materials and fibres, alternatives to the existing
properties of the substances that may be pres- ones; and the design of a joint R&D agenda in recy-
ent in the processes and of the chemicals used cling technologies (mechanic, chemic and biologic) as
throughout the manufacturing chain, and to take a reference solution for the industry.
any appropriate action. More information in section 5.4.5. Use and end-of-life of
products of this Report.
Within this framework of cooperation, in 2021 we
commenced industrial partnerships with leading EPSON-Inditex. Throughout 2021, the collabora-
companies in the industry enabling us to fast-track tion with this multinational has allowed to jointly pre-
the incorporation of disruptive solutions. Specif- pare and validate, as a proof of concept, the techno-
ically, global research partnerships were estab- logical and scientific bases necessary for the design
lished in science with BASF and in technology with and development of the R&D and innovation agenda
EPSON, both grounded on their commitment to in technologies of digitalization of wet processes as a
sustainability, leadership, multi-sector know-how reference solution in the Industry.
and their R&D capacity.
In the field of chemical safety, the Company, in part-
BASF-Inditex. The understanding and establishment nership with Universitat Pompeu-Fabra and the Uni-
of synergies between both companies has allowed us versity of Santiago, launched a joint action known
to work together in a sustainable technology for do- for the development of computational methods and
mestic laundering aimed at mitigating microfibres; tools to characterise chemicalsafety in the com-
obtaining sustainable solutions in wet processes pounds used in the textileand leather industry. This is
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4.3.6. Secure information,
safe privacy
GRI 103-2 AND 103-3
In the current framework of digital transforma-
tion, in which changes ensue quickly and con-
stantly, information is the fuel that drives the
machinery of any industry. Mindful of its impor-
tance and of the pre-eminent role of data securi-
ty, at Inditex we are committed to the continuous
improvement of our security management model
and we invest in harnessing the latest technolo-
gies and cutting-edge controls to keep our own
and our customers’ data safe.
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