Supply Chain Analysis of Disney

The Walt Disney Company is an entertainment and mass media multinational conglomerate. Roy O Disney and Walt Disney founded the media and entertainment company in 1923. Today, we’ll discuss the supply chain analysis of Disney; it focuses on various SCM elements like a responsible supply chain, production and manufacturing, sustainable and safe products, diverse suppliers, partnerships, and investment programs.

Supply Chain Analysis of Disney

Let’s discuss the main elements of the supply chain analysis of Disney are as follows;

Responsible Supply Chain

Disney is excellent and proficient in the art of giving life to the stories and characters on camera and on the big screen. The media company offers products and services and a unique digital experience to customers in hundreds of categories ranging from games, books, t-shirts, toys, and other products.

However, the media company is careful about responsible sourcing of supplies, materials, parts, and goods by putting a great emphasis on social and environmental sustainability. The media brand has made a strong commitment to the following sustainability initiatives;

• Respecting and complying with human rights standards
• Decreasing the carbon footprint
• Analyzing the safety of products
• Promoting diversity of suppliers
• Collaborating and partnering up with various suppliers and vendors to reach the company’s goals and objectives

Production and Manufacturing

Disney sells products and services directly to the end consumers through e-commerce platforms, stores, and parks. The media brand also issues licenses of stories and characters to third-party producers to develop and produce the branded products and services of Disney. However, it makes Disney the largest consumer product licensor worldwide.

According to an estimate, the products and goods of Disney are produced in approximately over 43500 production and manufacturing factories in more than 100 countries across the globe. The media company has a very large and complicated network of suppliers, production, and manufacturing factories. The brand procures a great variety of products and services from thousands of suppliers, vendors, and manufacturing partners; some of the main items are as follows;

• Offices and distribution centers
• Theatrical production
• Streaming, TV, and film
• Vacation experience and cruises
• Resorts and theme parks

Suppliers Code of Conduct

Disney has set up a strict code of conduct for suppliers and supply chains to ensure their compliance with ILS (International Labor Standards). The suppliers and supply chain code of conduct of Disney comprises of following elements;

• Compliance with globally recognized human rights standards
• No child and forced labor
• Treating everyone with respect and No discrimination of any type based on race, gender, or background differences
• Freedom to join and associate with any group and union
• A safe working environment without any abuse and harassment
• Market competitive wages, incentives, and benefits relevant to the country’s standards
• Standard working hours
• Commitment to the work and profession
• Compliance with environmental safety laws
• Animal welfare
• Responsible and ethical business practices

Environmental Sustainability

Disney has made a strong commitment to environmental sustainability and protecting nature. Some of the main steps that the media brand has taken are as follows;

• Decreasing the plastic waste from the resorts and parks
• Conservation of water and decreasing the consumption of water
• Decreasing the carbon emission rate by employing renewable sources of energy
• Sustainable production and manufacturing methods
• Reducing the impact of water
• Protecting the natural environment, climate, natural habitat of animals, and Indigenous communities
• Achieving net zero carbon emission rate by 2030

Safe Products

The IPR (intellectual property rights) of Disney brands, stories, and characters are highly significant to the company. Disney has established specific operational requirements, procedures, and policies to ensure the safety of the product and meet the safety goals and requirements.

The media brand collaborates, engages, and evaluates the product safety requirements of the suppliers, vendors, and licensees. Disney requires from them to send product safety testing reports and compliance documentation proof to the brand for further evaluation. However, it allows the media and Entertainment Company to ensure product safety and risk analysis.

Diverse Suppliers

Disney has made a strong commitment to the suppliers’ diversity program. The media brand focuses on promoting diversity in its entire supply chain network; it allows the company to promote innovation, and loyalty, and build strong relationships with a diverse range of suppliers. For instance, the diversity program includes including following members of society;

• Disabled owned businesses
• Veterans and their spouse
• LGBTQIA+
• Minority
• Women-owned businesses

SC Investment Programs

The supply chain investment program of Disney focuses on collaborating with various international organizations, social enterprises, non-profit organizations, and various other qualified groups. The objective of this alliance is to address issues like child labor, supply chain traceability, voice of workers, forced labor, ethical recruitment in the supply chain, and others.

Partnerships and Collaboration

Disney is collaborating with various organizations to ensure supply chain sustainability, inclusion, and safety. Some of them are as follows;

• USCIB
• SAI (Social Accountability International)
• Supporters Members
• MEKONG Club
• National Retail Federation
• IOE
• Better Work
• ICTI Ethical Toy Program

Conclusion: Disney Supply Chain Analysis | Disney Supply Chain Management

After an in-depth study of the supply chain analysis of Disney; we have realized that Disney is the world’s leading media and entertainment brand. If you are learning about the Disney supply chain analysis; then you should keep in mind the abovementioned SCM elements; responsible supply chain, production and manufacturing, sustainable and safe products, diverse suppliers, partnerships and investment program.