Do you know how to manage responsible sourcing requirements?

Today, progressive brands are beginning to allow suppliers to manage factory compliance, given that suppliers have the right program framework in place:

  • The Supplier has established effective policies, procedures and controls
  • Supplier has taken steps to ensure that there is effective program oversight by employees at the appropriate level
  • Supplier provides communication and training on requirements to employees and suppliers
  • Supplier staff follow its own policies and procedures and Supplier regularly audits and monitors supplier compliance to requirements.
  • Rules and regulations are consistently enforced and there are consequences for noncompliance.
  • The supplier commits to continuous improvement of its program, responds appropriately to incidents and take steps to prevent future incidents

Potential Benefits of Supplier Ownership

To Brands and Retailers

  • Educated suppliers that serve as partners on Responsible Sourcing
  • Suppliers equipped to introduce better factories
  • Suppliers better able to support factory improvement
  • Shift brand resources away from factory audit and remediation

To Suppliers

  • Stronger partnerships with customers
  • Manage the conversation around factory compliance.
  • Minimize risk associated with factory noncompliance (e.g. order reduction, termination)
  • Business growth through larger contracts and new customer relationships