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Sedex Supplier Ethical Data Exchange Driving a collaborative approach to supply chain management
Sedex Supplier Ethical Data Exchange
Driving a collaborative approach to supply
chain management
What is Sedex?
• Sedex was established as a not for profit, membership organisation in 2004, it is dedicated to driving improvements in ethical and responsible business practises in global supply chains.
• Built across four main pillars, it is a secure web based management system:
1. Labor standards 2. Health and safety 3. Environment 4. Business integrity
• Sedex is the world’s largest collaborative platform for the management and sharing of supply chain data.
Sedex Membership Model
Sedex has 2 membership types that reflect the different types of businesses in global supply chains
Who? Retailers, Consumer Brands, Government & NGOs What? View supply chain informaFon on the system
Purchase member
Who? Manufacturers, Agents, Importers, Farms, Growers, Factories, Service Centres, ProducFon Sites What? View and enter supply chain informaFon
Visibility
Supply Member
Copyright Sedex 2014
Information
Sedex Data Sharing SchemaFc
Copyright Sedex 2014
Retailer 1 Brand A
Retailer 2
Brand B
Supplier 1
Supplier 2
Supplier 3
Brand C Supplier 4 Tier 2 Supplier
Ø Brand Manufacturer B can share their data with 2 retailers
Ø Brand Manufacturer B can see data from Suppliers 1, 2 and 3
Ø Supplier 3 can share data with Brand Manufacturer B and C
Ø Brand Manufacturer C can access data for Tier 2 supplier
Membership Types A Members AB Members B Members
Visibility and traceability of supply chain informa:on • Increase supplier engagement and
collaboraFon • Support improvements in ethical performance
Risk management and mi:ga:on • Carry out risk assessments • Run supply chain reports to analyse issues • PrioriFse resources • Reduce reputaFonal risk
Generate supplier value and demonstrate to stakeholders your commitment to responsible sourcing
Share company informa:on with customers • Upload audits, cerFficates & correcFve acFon
plans • Complete assessment for own sites
Suppliers become Sedex B Members: Ø complete a Self Assessment Ques:onnaire (SAQ) regarding their ethical
standards Ø see your site risk ra:ngs on all Pillars in detail Ø upload and store audit reports, cer:ficates and correc:ve ac:on plans Ø request an ethical audit of your site Ø share your informa:on with mul:ple customers Cost: (incl VAT/TVA)
Copyright Sedex 2014
Supplier Sedex Membership B
Annual Subscrip:on
£48.38
$1200
$80.53 (US)
Reuters
Leading, pracFcal collaboraFon
• Unique market position (code neutral/non
profit/membership) • Collaborating for influence – helping to
increase your influence down the supply chain by working together with other brands and retailers
• Trusted partner for leading global initiatives in responsible procurement
• More than just talk - innovative combination of cross sector working groups and agile technology
Some examples of our partners
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1
2
3
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5
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1 2 3 4 5
Influence
Risk
Tiers in the supply chain
Strictly Confiden:al
The Business Case for supply chain collaboration
Sedex – Global Spread of Members
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Sedex team: § Global – offices in London,
Shanghai New York, Brussels & Santiago
§ International team, multi-lingual support & resources
§ Worldwide training support and hotline/call centre facilities
Global presence: § 37,000+ supplier organisations
across 150+ countries
§ 700+ purchasing organisations including FTSE 100/Fortune 500 brands
§ 70,000+ audits on Sedex
§ Impacts 24 Million workers globally
Providing a collaborative mechanism to more effectively assure and move beyond supply chain compliance Mutual Recognition of both SAQs and audits helps to reduce audit duplication, costs and fatigue (“an audit for one is an audit for all”) Best practice guidance helping members to build their own responsible sourcing programme & improve CSR standards
AIM PROGRESS – MISSION…
Industry specific ini:a:ves…
Providing a collaborative mechanism to more effectively assure and move beyond supply chain compliance Mutual Recognition of both SAQs and audits helps to reduce audit duplication, costs and fatigue (“an audit for one is an audit for all”) Best practice guidance helping members to build their own responsible sourcing programme & improve CSR standards
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Increase supplier support and leverage Common Audit Methodology Across Platform Reporting Reduced cost for Supplier Interaction
The benefits of mutual recogniFon…
Buyers FAQ and templates Introductory
webinars Suppliers guidance packs Suppliers
workbook
The Sedex Process – delivers your objec:ves
Risk filter
Dynamic SAQ
2c
Identify risks SAQ Management Risk Management
Iden:fica:on of poten:ally risky suppliers through internal risk filter
Hosts supplier documents | iden:fying data gaps | historical audits/NCs etc.
Pre-Screening Tool
Sedex & Maplecro. tool
Risk iden:fica:on based on inherent risk | spend | brand proximity | product etc.
Engagement
Sedex engages with suppliers based on their risk ra:ng
Interac:ve SAQ with risk specific focus sec:ons
Data Management
Data Analysis Track SAQ progress | NC analysis| trend analysis | Impact assessment | SAQ v Audit etc.
Risk Assessment
Risk ra:ng | risk forecas:ng | risk scorecard | risk mapping | individual supplier risk report | comparison report | benchmarking
Sedex & Maplecro. tool
Risk Management Bespoke correc:ve ac:on planning & recommenda:ons to improve risk ra:ng | Supplier guidance to rec:fy issues
Audit Management
Process management| Booking, uploading & correc:ve ac:on submission | NC analysis | issue cri:cality| NC closing | repor:ng
Capacity Building
Dedicated training support| Guidance and educa:onal resources | Raise awareness | Con:nuous improvement
Support
Dedicated Hotline| Mul:-‐lingual team & support| SAQ support | Training resources| Supplier Workbook*
*Sedex & Verite tool
It is your program – use the tools as you need – totally flexible solu:on
Sedex Tools
Supply Chain Mapping
Supplier Engagement`
Assessment of Risk
Audit Management
RemediaFon/CorrecFve AcFon
ConFnual Improvement
SEDEX
SAQ
Audit
Member
Risk
1 Supply chain mapping • Initial risk screening to
identify which suppliers to prioritise (e.g. high risk / high spend)
• Create supplier ‘target list’
3 Risk assessments
• Full supply chain risk assessment based on country; product area; site profile and SAQ
• Determine appropriate actions based on risk level, e.g. schedule immediate audits for high-risk suppliers, action-plans for medium-risk suppliers, bi-annual audits for low-risk suppliers, etc.
6 Monitoring & reporting Use dashboards and comprehensive reporting functionality to: • Access real time info on you
supply chain performance • Use dashboards to quickly
identify critical issues that require action
• Monitor and report on progress
5 Driving improvements • Based on audit findings,
suppliers upload corrective actions and evidence to the system
• Auditors verify completed actions to confirm issue(s) have been addressed
4 Auditing • External audits conducted at
supplier’s sites • Audit findings discussed
with supplier • Supplier empowered to make
corrective actions and manage issues
• Findings summarised and uploaded onto system by auditor
2 Supplier engagement • Suppliers contacted to join
Sedex platform, upload sites and grant access rights to buyers
• Suppliers complete a self-assessment questionnaire (SAQ) covering questions related to labour standards, health & safety, the environment and business ethics
Sedex Supply Chain Management Process
Copyright Sedex 2014
Co Name Address Country Sector Product Op:onal Risk Ra:ng
ABC Co 123 High Street France Manufacturing Food Processing Spend Low
Sedex Beta The Mine DRC Mining Gold Unique Supply High
The Farm Chocolate Rd Ivory Coast Agriculture Cocoa Spend High
XYZ Co The Bazaar Tanzania Intermediary Labor Unique Med
Supply Chain Mapping/Inherent Risk Profiling With the challenges facing retailers today in dealing with the global supply base, Sedex offers a truly holistic picture of supply chain risk and location. As a first step an overall inherent risk profile of suppliers is run. This gauges risk based upon things the company can not change. Such as location, product/sector etc. The results allow member companies to focus their efforts on suppliers or sectors of high risk brand exposure immediately
Self Assessment Questionnaire
Profile Labour Health and Safety Environment Business Ethics
Audit History Management Systems H&S Management Management Systems Management Systems
Seasonal Variance Employment is Freely Chosen H&S Training Waste AnF CorrupFon
Worker Types Freedom of AssociaFon Emergency and Fire Safety
Raw materials
CerFficaFon and Best PracFce
Living AccommodaFon Machinery & Site Vehicles
Water
Applicable Laws Children and Young Workers Hazardous Materials PolluFon
Size of Site Wages Worker Health Emissions, including GHG
Supplier Management
Working Hours Housekeeping & Hygiene
Energy & Climate
Non-‐ DiscriminaFon Renewable Energy
Regular Employment Biodiversity
Discipline and Grievance Suppliers
Smallholders
Homeworkers Copyright Sedex 2014
Our partnership with Maplecroft
October 2011
Sedex Contact: [email protected]
www.maplecroft.com
ITEM: Sub-National Labour Rights and Protection Index, China
The Risk Assessment A fundamental aspect of a proactive and focused approach to supply chain transparency is the construction and interpretation of supplier risk profiles. The Sedex Risk Assessment Module combines three different areas of risk scoring to provide the most accurate and robust view of global risk. It combines Inherent Risk, Company Management Risk (SAQ Answers) & historic audit. Sedex partners with Maplecroft is the world’s leading global risk analytics, research and strategic forecasting company. A member company can, based upon it’s own appetite for risk develop structured behaviors based upon a suppliers risk profile, including the timing and necessity of audit.
A retailers heat map of risk
Monitoring and ReporFng
Mexico – 62 days
Mexico – 62 days
Mexico - 839
Mexico 5.04
Cujng edge thinking: monitoring and learning
• Any social, environmental or human rights audit can be uploaded and managed on the Sedex system
• SMETA is voluntary audit standard open to all (members and non members) • New audit quality project launched • On-‐going development of SMETA • Unique market posiFon to drive change (through a working group of auditors,
brands, retailers and suppliers)
• New online learning management for suppliers and buyers tool launching soon • InnovaFve, unique technology being developed to connect online learning with
sustainably big data
Sedex and Ethical Auditing
• Sedex is not an auditing body
• Any ethical audit can be uploaded onto Sedex – BV, SGS, Levelworks, Intertek etc
• With an average audit cost of $3,000, Sedex was founded to reduce the duplication of ethical audits, the average supplier shares their data with 3.3 customers through the system
• Sedex has working group dedicated to reviewing the practice of ethical auditing -Associated Auditing Group (AAG)
• AAG launched Sedex Membership Ethical Trade Audit (SMETA), a common format and guidance for ethical auditing
Open for use by members and non members
designed to benefit all retailers, brands and suppliers by reducing duplication.
Added Benefits of Sedex
Multi-lingual helpdesk and support materials Participate in working groups to help shape future Sedex developments Sedex Members Ethical Trade Audit (SMETA)
ü Common best practice guidance on ethical trade audits ü Common audit report format ü Common corrective action plan format
Attend Member events – China and UK Members’ Forums Regular member communications – quarterly newsletter Links with other collaborative projects - AIM Progress
