Dior's Italian Supply Chain Missteps

This is a Italy news story, published by Yahoo Finance, that relates primarily to Dior news.

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Italian luxury goods supply chain

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luxury supply chain auditors

Reuters

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Inside luxury goods' broken audit system

Summary

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79% Informative

LVMH-owned Dior 's production arm in Italy relied on formal inspections to assess working and safety standards inside its supply chain last year .

AZ Operations , a sub-contractor of Manufactures Dior tasked with the production of leather items, was accused by Italian prosecutors in June of being a front for an operation that exploited workers.

Despite passing the audits, a police investigation into its 2023 activities found AZ Operations was "de facto non-existent" Despite the risks, insiders and experts told Reuters relying on suppliers is a deliberate strategy to keep costs down.

Italy 's antitrust authority said in July it was investigating whether Dior and Armani have misled consumers.

Some LVMH shareholders have asked the $330-billion behemoth to better monitor how its contractors treat workers.

Italian court president Fabio Roia said companies don't normally question the extremely cheap prices offer to provide services.

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formal

Language

English

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Offensive language