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.

  • 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
      • Email
      • 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.
      • eLearning.
      • 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