Supply Chain

About Supply Chain
about supply chain
Disney promotes the ethical production of Disney-branded merchandise by working to improve labor standards in facilities, testing the safety and integrity of our end product, and working to reduce the environmental footprint of our supply chain.

ABOUT THE SUPPLY CHAIN

Disney-branded consumer products inspired by our characters and other intellectual properties are sold in our theme parks and resorts, in Disney Stores and in countless retail locations around the world. Disney brands have been extended to merchandise ranging from apparel, toys and home décor to books and magazines, foods and beverages, stationery, electronics and animation art. Only a portion of these consumer products are sourced directly by or on behalf of the Company. The vast majority of Disney-branded products are manufactured and sold under licenses granted by Disney to third party licensees who obtain the right to manufacture and sell products to or through independent retail operations around the world.

This means that Disney-branded products are produced under a variety of business models. As a result, we have different levels of access to and control over the manner in which products are manufactured and sold. Chart 21 describes in more detail where Disney typically has a direct presence in the decision-making process related to the procurement and development of consumer products.

Disney's Business Relationship with Vendors and Licensees

Many entities around the world are interested in entering licensing and vendor relationships to produce and sell Disney-branded products, due to consumer interest for Disney's large portfolio of valuable intellectual property. As independent businesses, these entities generally have the ability to choose the manner in which they produce their products, including determining where and in which facilities they schedule production. As a result, Disney-branded products have historically been produced by a larger number of entities and in more manufacturing facilities than is the case at many other consumer products companies.

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