AccionRSE Meeting 24May2013

7/30/2019 AccionRSE Meeting 24May2013

1/14

Sedex Group

Effective management of

supply chain risks

Copyright Sedex 2012. All Rights Reserved. No part of this document may be reproduced or redistributed in any form without written consent from Sedex.


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Sedex

The global provider of choice for responsible supply chainsolutions

Focus on 4 key areas; Labour standards, Health & Safety, Environment &Business Ethics

Core objectives of reducing duplication and driving collaboration

Largest system for sharing ethical trade data in the world

Enables a risk based approach, flexible, cost effective & time efficient

More than 550 brands and retailers along with circa 30,000 suppliers

Operates in more than 150 countries, multi lingual system

5 offices, London, New York, Shanghai, Brussels, Santiago Not for profit organisation owned by our members

Provides end to end support for companies ensuring program success

www.sedexglobal.com
http://www.sedexglobal.com/http://www.sedexglobal.com/


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Some of our members


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Drivers for better supply

chains

Meet consumer expectations protect reputation

Ensure product continuity

Enhance company value and competitive position

Meet legal & regulatory requirements


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What does the future hold?

Compliance

Traceability

Compliance

Traceability

Compliance

Traceability

Compliance

Traceability


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Supply chain challenges

Global

different language, different legal requirements, different issues,different responses

Challenges are complex buying practices helping or not

Knowing the real risks and issues

Greater transparency required who is in the supply chain

Differing standards and buyer requirements ILO, Ruggie, ETI, GSCP

Regulatory & Legal requirements local and global

Frequently change long term, season, transactional

Greater public awareness and access to technology enables others to

control the storytelling


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Sustainable development

is about sustainable solutions

Poverty and inequity

Epidemics andhealth crisis

Climate change

Biodiversity loss

Financial crash

Security threats

age of problems

Sustainable development

age of solutions

Environment


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Not buyer BEWARE but BE

AWARE

Top Ten Global Non Compliances

0%

2%

4%

6%

8%

10%

12%

14%

16%

Codeandsystemimplementation

Inadequatestorage

facilitiesforhazardous

che

micals

Excessiveworking

hours/overtimehours

Complianceofthesitewithlawsand

r

egulations

Norestdayforeach7days

Thefacilitylackst

hepermitsrequiredby

lo

callaw

Provisionofpremiumrateforovertimein

comparisonwithlocallaw

Exitsignage

missingorinadequate

Nocertific

ate/certificateexpired

Lackofeyeorneedleguardsonsewing

m

achines

Agents/Intermediaries

Global

Country% of Total

Sites

% of Total

Audits

% of Total

Issues

Avg Audits

Per Site

Avg Issues

Per Audit

France 14% 13% 16% 0.8 1.4

Germany 9% 8% 11% 0.8 1.5

Spain 11% 10% 6% 0.8 0.7

Portugal 18% 19% 17% 0.9 1.0

Italy 25% 25% 24% 0.9 1.1

United Kingdom 23% 24% 26% 0.9 1.2


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Key issues found in Chile

Category Issue Detail

1

Environment Non-compliance of the site with local and

international environmental laws and

regulations

2

Labour Standards Individual time records missing or

incomplete

3

Health & Safety Absence of provision for safe

handling/storage/disposal of hazardous

chemicals

4

Management Systems (Corporate) Code and system implementation

5

Health & Safety Inadequate storage facilities, labelling,

training, containment or spill kits for

hazardous chemicals or lapses in their use

6

Health & Safety Fire fighting equipment inadequately

installed/ not installed

7

Labour Standards Inadequate systems for recording working

hours

8

Health & Safety Adequacy of provision for safe handling of

hazardous chemicals

9

Health & Safety Suitable PPE not consistently worn or

maintained

10

Labour Standards Daily working hours / overtime hoursexceeded the legal maximum

Top 5 issues globally

1. Fire Safety

2. H&S Management

3. Working hours

4. Storage & Use of Chemicals

5. Worker Health


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And if you dont manage

these issues..


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Collaborate to succeed

Doing it alone is more difficult -

collaborate

Your largest risks are in yoursupply chain and not in tier 1

Engaging with suppliers is key

but the hardest part.

Approaching each supplier

independently is not effective and

causes duplication


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So what should business do?

Buyers

Buyers should clearly communicate their requirements

Work with suppliers to build improvements over time

Consider buying practices and their impact on suppliers

Adopt existing models to reduce duplication and enable greatercollaboration

Use the data available and go beyond tier 1

Suppliers

Suppliers should know their strengths and weaknesses, self assessmentand audits are useful tools

Use tools to understand how to make improvements

http://www.sedexglobal.com/resources/supplier-workbook

Manage your supply chain responsibly too

Communicate your activities
http://www.sedexglobal.com/resources/supplier-workbookhttp://www.sedexglobal.com/resources/supplier-workbookhttp://www.sedexglobal.com/resources/supplier-workbook


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www.sedexglobal.comwww.sedexsolutions.com

EMEA

Sedex Information Exchange, 5th Floor,

24 Southwark Bridge Road, LondonSE1 9HF

Tel: +44 (0)20 7902 2320

Americas

Sedex Information Exchange, 26th Floor

405 Lexington Avenue, New York City, New York10174

Tel: +1 888 487 6146

Asia Pacific

Sedex Information Exchange, Apollo

Building

1440 Yan An Road (Central), Shanghai200041

T l +86 (0)21 6103 1622

Thank You

[email protected]

Jose Manuel Melero (Chile Regional Representative)

[email protected]
http://www.sedexglobal.com/http://www.sedexsolutions.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.sedexsolutions.com/http://www.sedexglobal.com/

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