Levi Strauss & Co, H&M and Inditex, which owns the popular brand Zara, rank the highest among fashion brands when it comes to supply chain transparency, according to a new report published by the Ethical Consumer in partnership with Fashion Revolution. The Fashion Transparency Index scored fashion companies according to how well they publicly communicate their supply chain sustainability initiatives.
Category Archives: Supply Chain Visibility
Consumer Goods Companies Lack Supply Chain Visibility, Unable to Assess Environmental, Social Impacts of Products
The majority of consumer goods manufacturers lack visibility into their supply chains and are unable to truly track sustainability practices or identify problem areas such as possible deforestation and forced labor, a new report from The Sustainability Consortium (TSC) shows. The group’s 2016 Impact Report stated that of the 1,700 companies surveyed, only 19% indicated they had full supply chain transparency. Twenty-seven percent said they had partial visibility into their supply chain and 54% had no supply chain visibility.
The earthquakes and aftershocks that have hit Japan in recent weeks have caused significant supply chain disruptions. While companies cannot completely predict natural disasters, they can and must position themselves to be able to respond when one occurs, risk management experts say. A key part of setting up a strong risk management program is having access to information that provides a high level of visibility over what is happening in your supply chain.
The new Trade Facilitation and Trade Enforcement Act makes it illegal for the U.S. to accept imported goods made through forced labor. The U.S. government has a list of more than 400 goods produced using child or slave labor that can serve as a guide for companies assessing their supply chains. However, according to Pierre-Francois Thaler, co-founder and co-CEO of supplier rating technology provider EcoVadis, companies looking to truly tackle slave labor in their supply chains and establish long-term sustainability initiatives need to dig deeper and do their due diligence beyond checking the government’s list.
Consumers today are demanding more information than ever before on the food they buy and eat. It’s not a new phenomenon, but it’s an important point for food companies and retailers to take note of, especially as they compete for customers’ dollars and loyalty. A new report, however, has shown nearly two-thirds of consumers don’t think food companies are transparent enough — they want more food production information than they are finding at the grocery store.
The Trade Facilitation and Trade Enforcement Act of 2015 was signed into law in February and prohibits the United States from accepting imported goods made through forced labor. A previous loophole allowed goods produced through slave labor to enter the country if demand for the product outweighed current supply. The new law also known as the customs bill calls on companies to gain a higher level of visibility into their multitier and global supply chains.
With the recent passage of the Trade Facilitation and Trade Enforcement Act of 2015, which bans the U.S. from accepting imports produced by slave or child workers, companies will have to start digging further down in their supply chain to investigate whether this forced labor exists. According to Mickey North Rizza, vice president of strategic services at BravoSolution, companies need to start preparing now for enforcement of this new trade act, and that begins with mapping your supply chain to identify areas of risk.
President Obama signed last week the Trade Facilitation and Trade Enforcement Act of 2015, making it illegal for the U.S. to accept imported products made by forced labor. The law amends previous legislation that allowed any product into the country regardless of how it was produced if it met the “consumptive demand” rule, which is when demand is high but supply is insufficient.
When it comes to sustainable procurement trends in 2016, collaboration between industry peers and even competitors will become more common to determine best practices and achieve positive results. Pierre-Francois Thaler, co-CEO of EcoVadis, said while this collaboration and the industry specific initiatives born from it is not exactly a new concept, it will become more widespread. He expects more companies will engage with one another this year to develop a shared approach to sustainable procurement.
The majority of large food manufacturers lack visibility into their supply chains, putting them at risk for violating regulations and damaging their reputations, according to a recent survey commissioned by Achilles. The results found 19% of large food manufacturers around the globe could not determine the name or address of all their suppliers in the supply chain, and 53% said they had no plan in place to find this information in the future.
Is Your Product Truly American-Made? How Imports, Suppliers and More Play Into the Coveted Made in USA Claim
What does it take for a company to be able to declare their product is truly “Made in USA”? What does its supply chain look like? Who are the suppliers? There are federal standards set out by the Federal Trade Commission on this subject in addition to state regulations, which in some cases can be even more stringent. We took at a look at these regulations and how a company can legally slap that “Made in the USA” label on their product.
The majority of companies that experienced a supply chain disruption in the last year cited either a tier 1 or tier 2 supplier as the predominant source of the disruption, according to 2015 Supply Chain Resilience Report from the Business Continuity Institute and Zurich Insurance. Half of all respondents in the report cited a tier 1 supplier, the immediate or direct supplier, as the major source of the supply chain disruption and an additional 21% cited their tier 2 supplier, the supplier of the OEM’s tier 1 supplier.