Supplier ownership of Responsible sourcing can help suppliers introduce better factories, understand complex compliance issues and work as a more reliable and informed partner in reducing supply chain risk.
- Policies &
- Program Oversight/Effectiveness
- Training & Communication
- Auditing &
- Enforcement & Discipline
- Continuous Improvement
The supplier has established effective policies, procedures and controls
- Code of Conduct that defines the expectations for factory compliance
- See our Build Your Own Code of Conduct feature here
- Factory Responsible Sourcing Manual that details specific procedures factory must follow in order to work with Supplier. Examples of what might be covered include:
- Audit Procedures
- Corrective Action and Remediation
- List of Zero Tolerance violations
- Termination Policy
- Contact Information
- Document checklist
- Pre-Sourcing questionnaire
- Internal Guidelines that detail internal procedures for managing your program. Example of what might be covered include:
- Factory Pre-Approval Process
- Audit Scheduling and Review
- Corrective Action Plan Review and Verification
- Tracking and Reporting
- Managing Customer Requirements
Supplier has taken steps to ensure that program is overseen by employees at the appropriate level and with the appropriate training.
- There is executive support for Responsible Sourcing and the program is given adequate resources to operate effectively.
- The Supplier has internal staff dedicated to Responsible Sourcing.
- The Supplier has local staff in all manufacturing regions to support management of factory relationships and compliance.
Supplier provides communication and training on requirements to employees and suppliers
- The Supplier clearly communicates customer and supplier expectations to factories through a combination of:
- Policies and Procedures, such as the Code of Conduct and Factory Responsible Sourcing Manual
- In person meeting
- The Supplier has provided appropriate training of of staff to understand and comply with Responsible Sourcing requirements.
- The Supplier provides regular factory training, including both general program expectations and specific compliance requirements. Examples may include:
- Group seminars.
- In-factory training and consulting.
Supplier staff follow its own policies and procedures and Supplier regularly audits and monitors supplier compliance to requirements.
- The Supplier employs dedicated, internal audit staff and/or engages third party auditors to conduct regular audits of manufacturing facilities
- The Supplier includes audits of manufacturing facilities as part of its pre-sourcing review process
- The Supplier works closely with customers to support their audit process and follow up
Rules and regulations are consistently enforced and there are consequences for noncompliance
- The Supplier maintains a list of issues considered to be “Zero Tolerance” and has developed an action plan to address these issues when they arise.
- The factory implements consistent disincentives for factory noncompliance and and incentives for factory compliance.
- The Supplier maintains factory scorecards that give equal weight responsible sourcing in addition to more traditional metrics such as price, delivery, quality and safety.
- The Supplier has an escalation process to ensure that senior management is made aware of any critical issues.
Continuous Improvement and Program Effectiveness: The Supplier tracks program effectiveness, responds appropriately to incidents, and take steps to prevent future incidents.
- The Supplier reviews and updates its policies and procedures at least annually to ensure that policies and procedures reflect actual business practices.
- The Supplier collects and reviews factory profiles at least annually
- The Supplier measures program success based on specific metrics, which may include:
- Number of factories
- Audit scores
- New factory approval rate
- Number of audits and re-audit conducted
- Percentage of factories audited
- Audit spend
- Transparency rate
- Factory remediation and capacity building activities
- Factory improvement and progress
- Customer feedback, including supplier scorecards
- The Supplier provides its Customers with regular reporting on factory performance