Ethical Supply Chain

Defining The Service

The Importance

For a company to be truly sustainable, not only should internal activities and projects be monitored, but indirect impacts such as procurement should also be monitored. To decrease the risks associated with suppliers, examine the culture, ethics and compliance practices adopted by the candidates. Ethical supply chain monitoring can help companies make informed decisions when selecting suppliers that “fit” with their existing culture and practices as well as pin point current suppliers who do not.

Challenges

It is important to know the "where's" "how's" and "what's" in supply chains to ensure the products a company procures aligns with their culture and practices. Often times investigation includes looking into labour, environment, safety, corruption and even the third party supplier profile of the candidate in question. This investigation however, can be aided with the knowledge of legitimate certifications and guranters of the ethical supply chain such as FSC paper group whereby member organizations have proven to be ethical by using waste materials and sourcing from sustainable forests to manufacture paper.

What We Can Provide

Identification

Using our resources and experience in researching sustainable products as well as ethical companies, we can efficiently and effectively suggest ethical suppliers with reasonable prices. This way, not only will your company adopt a better social image by sourcing from ethical suppliers, but there is a potential to save cost as well!

Implementaiton

Biji-biji is the first company in Malaysia to receive a World Fair Trade Organization (WFTO) membership. The approval process has trained us well in identifying what should be considered when determining an ethical supplier and how to go about the implementation. It can be a long and tedious process but we can help your company overcome it with our expertise.

How Is This Service Provided?

This service tackles each ethical supply chain challenge on a case by case basis. It provides a service which is tailored to suit your needs and requirements based on information we gather from your company's representatives.The supply chain audit will follow a checklist. The checklit enables the audit to work with a steady flow as it helps to realize the vision of the audit. A good supply audit will put in place a strong strategy for implementation, a good idea of the structure of the company and suppliers, ensure the right people with the right knowledge are within each department, implement a precise supply chain process and ensure the right technology is in place to maintain the companys standing within the competitive market.

Is This Service Suitable For You?

Perks

  • Ability to obain certifications, including WFTO, Green-labels, FSC, MaGIC IDEA, Green Mark
  • Abilty to compete with the growing market of etchical suppliers
  • Expands the consumer outreach as there is a growing numbers of etchical buyers
  • Provides better security in terms of accountability for faulty product/services
  • Better management of risk in your supply chain
  • Confidence in providing information and verification when providing proof of ethical operations in which customers, stakeholders and staff are increasingly becoming more concerned of
  • Attract young talents to the company as the youths are increasingly concerned with ethical operations
  • Providing support local/SE/SME/community and thus sourcing local, within a specific distance
  • Achieving lower carbon emission
  • Potential to boost employee morale

Case Studies

In 2010 PepsiCo uncovered over $60m in energy-saving opportunities as a result of a carbon management and energy assessment programme it undertook with its suppliers. Effective auditing not only sends a strong message to suppliers, it increases transparency and helps identify problems that need remedying. Whilst the cost of a thorough auditing process may seem prohibitive in the short-term, the long-term benefits of a well-designed process will almost always pay off.

Over the last 10 years, Lush have been consistently been re-sourcing and developing relationships with producers that are direct as feasible, in order to trust that their suppliers’ working conditions are dignified and that their prices are fair.

References:

https://www.theguardian.com/sustainable-business/sustainable-supply-chains-ethics-profits

https://uk.lush.com/article/our-stance-fair-trade