Managing for supply chain compliance

Managing for supply chain compliance

Companies manage their entire supply chain to proactively fulfill commitments, identify non-compliance, and resolve any such issues expeditiously and effectively.

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Stage of the ethical supply chain journey

Implement ethical supply chains

Companies manage their entire supply chain – including their own operations and supplies purchased from other parties – to proactively fulfill commitments, identify non-compliance, and resolve any such issues expeditiously and effectively. To the extent that companies purchase raw, processed, or manufactured materials from other parties, these buyers manage their suppliers as follows.

6.1

Buyers communicate to suppliers that they will accept only materials that are produced and controlled in accordance with their commitments and the applicable sections of the Accountability Framework.

6.2

Buyers that maintain long-term or recurring buying relationships with producers or primary processors support these suppliers to be able to fulfill commitments. Support prioritizes engagement with smallholders and others who may require more assistance to avoid their exclusion from supply chains.

6.3

Buyers manage non-compliance to resolve such issues expeditiously without enabling or promoting further non-compliance. Depending on the severity of the non-compliance – as well as the supplier’s degree of culpability for it and the supplier’s commitment and capabilities to move towards compliance – suspension or exclusion of the supplier may be warranted. When non-compliant suppliers are retained or suspended, buyers engage them to develop, implement, and monitor an ambitious and time-bound implementation plan to achieve compliance, including any necessary remediation. Parameters for characterizing the severity of non-compliance and determining the appropriate course of action are elaborated in the Operational Guidance on Supply Chain Management.

6.4

To the extent that a buyer lacks control or influence over its indirect suppliers, it engages its direct suppliers to institute effective incentives, support mechanisms, and purchase control systems to maximize fulfillment of commitments and avoid severe or persistent non-compliance in its indirect supply-base.

Apply the Principle

Operational Guidance
Smallholder Inclusion in Ethical Supply Chains
Operational Guidance
Supply Chain Management

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If you have specific questions about how the Framework can be applied in your context, or would just like to speak directly with a member of the AFi, please contact us below.

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