40 million people worldwide are estimated to be trapped in modern slavery; this article will show you how to control the risk that slaves are operating within YOUR supply chain.
Modern Slavery is the “severe exploitation of other people for personal or commercial gain”. It is outright wrong! However, 2020 has really shown that supply chains are fragile, and our sources of supply are not always fully known. Whilst fragility and uncertainty within the supply chain often just results in poor delivery performances, it can also provide opportunity for much more sinister activities.
The 5 steps below outline the key ways you can control the risk that modern slaves are operating within your supply chain:
1.) Create your Expectations – The first step to enforcing any position is to create your expectation. Whilst in most cases this should just be based upon the most basic morale values, in some cases documenting this expectation is a legal requirement. Since 2016 the Modern Slavery Act 2015 (Section 54) has made it a legislative requirement for large commercial organisations to publish their modern slavery statement. Through having this published within your organisation it’s the start of symbolising a clear stance on modern slavery and your commitment to stamp it out.
2.) Contract your Expectations – Once your organisations position is clear, you can use the policy to contract suppliers to abide by it and enforce management practises within their own organisation and their subsequent suppliers’. This ensures that your views are flowed down the tiers of your supply chain.
3.) Map your Supply Chain – Whilst contracting suppliers to manage modern slavery is one thing, being able to map the tiers of your supply chain is another. In some cases, engaging your supply chain in a mapping exercise can provide opportunity to understand the primary sources of your goods and therefore get to the very root of supply – in many cases where the problem is. This allows you to target any potential hotspots and resolve any problems. In addition to this, there are also a wide range of other benefits through the development of a supply chain map. These are better resilience; unblocking of bottlenecks; flow down of standards; alongside better training and innovation development. The list really does go on!
4.) Avoid being a ‘Channel of Power’ – This one is key, whilst it’s easy for organisations to say the right things, contract their suppliers and even map the tiers of their supply chains, all of this is irrelevant if they place demands on their supply chains which force suppliers to turn to slavery. Whilst this is uncommon in many industries it’s certainly far from uncommon in some. Through the driving down of prices, it can force suppliers to use cheaper labour options, which can all too often include modern slavery. A key way to avoid this is to ensure that tender practises are fair, and your negotiation strategy respects the market.
5.) Test your Supply Chain – Finally, the last tool in the toolkit is to test your supply chain. Asking the questions, visiting their sites, and speaking to the employees is a great way to gauge the current situation. Best practise in this area is to create a blend of regular scheduled suppliers’ audits with short notice or unexpected drop-ins, this helps you see the truest situation. It is also worth noting that some of these techniques don’t even require a physical visit, and a lot can be achieved through managing suppliers virtually!
Eliminating Modern Slavery should be on everyone’s agenda, through implementing these five elements above you can start your journey to controlling the risk of Modern Slavery being active within your supply chain.
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