Manage supply chains

First, companies need information about the materials they purchase so that they can understand the performance of these materials relative to the company’s supply chain goals and other market, legal, or regulatory obligations. This may include information about the origins of the products or the manner in which they were produced.

Companies often receive unclear or conflicting expectations related to supply chain mapping, risk assessment, traceability systems, and other approaches to collecting supply chain information. The Accountability Framework’s Core Principle 5 and related guidance can support your company in understanding these important functions. This includes how much traceability your company needs and how to achieve it in any given context.  

Second, based on existing performance levels, companies often need to manage their supply chains and engage with their suppliers to improve performance or achieve compliance.

The Framework’s Core Principle 6 and related guidance can support your company in communicating sourcing expectations to direct and indirect suppliers. This includes support in developing supplier codes, questionnaires, and procurement policies. The Framework also guides buyers on when and how to engage suppliers in improvement processes, and when it may be necessary to suspend or exclude non-compliant suppliers. The Framework provides criteria and considerations to help your company choose the best course of action in each case. This can help to mitigate risk and prevent future negative impacts.