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Enabling Responsible International Workplaces
New FFC Partnership Model
Enabling Responsible Supply Chains
Topics Covered
Who is the FFC? What is the partnership model? Why is the FFC expanding membership? What are the new FFC membership categories? What are some of the incentives to join? What comes along with each membership to the FFC? How will it change for existing members? What will membership cost? When is this new partnership model taking effect?
Enabling Responsible Supply Chains
Who is the Fair Factories Clearinghouse?
A non-profit organization that:
• Offers technology tools to members to manage the compliance practices of their global supply chains, as well as to collaborate with others on supply chain compliance
• Enables a membership community and collaborative monitoring practices to pool resources & expertise
• Advances knowledge about global workplace conditions
Enabling Responsible Supply Chains
What is the FFC’s Mission?
Technology empowers companies to conduct ethical sourcing
Experienced partners share capability, enhancing effectiveness beyond a single company’s experience
Collaboration throughout the supply chain reduces audit fatigue and contributes to factory improvements
Global Clearinghouse improves availability, comprehensiveness and standardization of factory information, and advances efforts to improve global workplaces
Our Plan
Our Path
Enabling Responsible Supply Chains
Clearinghouse Concept
Enabling Responsible Supply Chains
What is the partnership model?
The partnership model is a fresh look at membership types in the FFC that is inclusive of all supply chain actors, in order to create opportunities for information management, data exchange, transparency and collaboration at any level in the supply chain
Any actor in the supply chain will be able to join the FFC and use its software tools, for a minimal fee, to manage its compliance performance, and then provide visibility to its buyers and partners:
• Membership at the “top” of the supply chain will remain as it does• Membership to the FFC (and the use of the FFC software) will be
expanded to supply chain actors in the “middle” and the “bottom” of the supply chain, as well as any service providers servicing them
Enabling Responsible Supply Chains
What are the new FFC membership categories?
Enabling Responsible Supply Chains
Why is the FFC expanding membership?
We seek to augment our ability to meet our mission by:
Expanding our reach of our clearinghouse of factory information Creating more opportunities for collaboration, reducing audit fatigue Supporting a “bottom-up” approach to compliance, where suppliers
manage the entire compliance process, and companies who operate Providing tools to supply chain actors that enable them to manage and
share compliance information for its buyers Bringing in the expertise and contacts of service providers into our
membership community, and easing their implementation for clients Gaining access to additional data for analysis, derived from multiple
sources Opening additional sources of revenue
Enabling Responsible Supply Chains
Gain full access to innovative software to manage the nuts and bolts of compliance programs
View / Manage compliance data of suppliers and/or production sites (owned or outsourced)
Identify supply chain overlap, and message others (even if hidden) to initiate collaboration
Provide system access to suppliers and business partners and assign them tasks in the system
Share compliance data (self-assessments, audits & CAPs) with customers
Access compliance documents posted by other members on the sharing platform
Collaborate with others on joint audits & CAPs, to reduce audit fatigue
Network with other FFC members to share expertise
Option to participate in FFC governance, shaping future of the organization
Option to participate in FFC member-driven working groups to drive program innovation
Purch
aser
Inte
rmed
iary
Suppl
ier
What are some of the incentives to join?
Enabling Responsible Supply Chains
Access to FFC’s Audit Management Software
Access to FFC’s Sharing Platform (Full)
Access to FFC’s Sharing Platform (All, minus access to purchaser’s posted documents)
Unlimited use of audit management solution for supply chain Own only
System set-up, member-integration into system time & materials
Helpdesk support, through FFC’s online ticket system
One-On-One system training and consultationtime &
materials
Participation in FFC’s regularly scheduled training webinars (offered monthly)
Custom reports, custom system development time & materials
Purch
aser
Inte
rmed
iary
Suppl
ier
What do membership fees include?
Enabling Responsible Supply Chains
Audit Management System (AMS)
Set your own security and access rules in administration Manage factory data, including contacts Deploy self-assessment tools Create customized audit questionnaires / instruments Request, schedule, deploy and record audits Manage corrective action plans Record audit results offline Store audit / assessment documents Create and communicate supplier designations / statuses Analyze workplace /supply chain information Produce custom reports / exports on any data element
Enabling Responsible Supply Chains
What will the AMS give each member?
Purch
aser
-
Full
Inte
rmed
iary
Suppl
ier
Accounts
Sourcing
Designation
Standard Documents
Self-Assessments
Audits
CAPs
Audit Scheduling / Calendar
Worker Exposure
Reports
Administration (related)
Purch
aser
-
Sharin
g
Enabling Responsible Supply Chains
Sharing Platform (SP)
Search factories Identify supply chain overlap and opportunities for
collaboration Access shared compliance documents (if purchaser) Share factory lists and compliance documents (anonymously
or not) Message other members (even if hidden) to initiate
collaboration Use secure online audit and CAP tools for joint activity across
companies, to collect progress reports and manage performance
Enabling Responsible Supply Chains
Purch
aser
-
Full
Inte
rmed
iary
Suppl
ier
Factory List Overlap
Search Shared Documents
Post / Share Documents
Messaging
Joint Audits & CAPs
Administration
Purch
aser
-
Sharin
g
What SP tools does each member get?
Enabling Responsible Supply Chains
How will it change for existing members?
The use of the system for our current members and their users will not change at all.
All will continue to use the system as is, including having their suppliers log in on their behalf. Members will still control what a supplier can see and do in their system, but now if that supplier also joins the FFC, they will also get their own version of the system.
Scenario: Company X is a current FFC. X created an account in their system for their trading agent, Agent. X gave an Employee of Agent access to the system to upload corrective action plans. Agent also became an Intermediary member of the FFC. Employee will have two versions of the software:
• Logging in for X, where she upload audits only for factories where X has given her access
• Logging in for Agent, where she has full use of the system as defined by Agent’s system administrator
Enabling Responsible Supply Chains
Annual Fees:• Supply Chain Intermediary - $500
• Supplier - $100
• Service Provider - $4,000
• Trade Association Partner - $10,000
What will membership cost for supply chain actors?
Enabling Responsible Supply Chains
What will membership cost for purchasers?
Purchasers pay annual dues and an integration / set-up fee based on net revenues (gross annual income from “private label” and / or “importer of record” products)
Purchasers who are members of the National Retail Federation or the Retail Council of Canada) receive a 20% discount on annual dues
Purchaser members will receive a credit towards their next year’s annual dues for every intermediary and supplier in their supply chain who joins the FFC. Credits for shared factories will be split evenly across active members. Credits will be capped at 40% of the company’s annual dues in any 12-month period
Enabling Responsible Supply Chains
When will this take into effect?
Membership categories are now open for all, and any actor can join at any time
However, additional activities to support this will be live in September:
• The FFC is creating an online registration and payment system, to ease FFC’s administrative costs and member sign-ups
• The FFC will prepare welcome kits and user manuals
• The FFC will begin regular training webinars for ongoing enrollment, supporting various time-zones
For more information: [email protected]