Managing Requirements

Do you know how to manage responsible sourcing requirements?

Your customers are beginning to expect suppliers to manage factory compliance, if suppliers have the right program framework in place.

Program elements include:

  • The Supplier has established effective policies, procedures and controls.
  • The Supplier has taken steps to ensure that there is effective program oversight by employees at the appropriate level.
  • The Supplier provides communication and training on requirements to employees and vendors.
  • A Supplier’s employees follow its own policies and procedures and the 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 suppliers

  • Stronger partnerships with strategic customers
  • Proactively managing responsible sourcing issues before they become your customers’ problems
  • Minimize risk associated with factory noncompliance (e.g. order reduction, premature exit from a factory relationship)
  • Business growth through new customer relationships, larger contracts and cost savings over time

To brands and retailers

  • Informed and aligned Suppliers that serve as respected 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