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Procurement and Modern Day Slavery Part 2

Procurement and Modern Day Slavery Part 2

Tuesday 5th September 2017

CIPS (Chartered Institute of Procurement & Supply) state there is no official template but that the statement should contain:
1. An outline of an organisation's structure, business and supply chains.
2. Policies and due diligence in relation to slavery and human trafficking.
3. An identification of parts of its business and supply chains where there is a risk of slavery and human trafficking, and the steps it has taken to assess and manage that risk.
4. An assessment of its effectiveness in ensuring slavery and trafficking are not taking place in its business or supply chains measured against performance indicators it considers appropriate.
5. Information about training concerning slavery and human trafficking that's available to staff.

Whilst this is now law, it should be common place practice anyway within procurement and supply chain, across all functions and levels.
"While it is impractical for an organisation to audit and monitor each and every supplier in its entire supply chain at all levels, it should be possible to identify key vulnerabilities and take a risk-management approach to ethical procurement." Carla Susmilch, CCEP (2015) https://www.linkedin.com/pulse/human-trafficking-your-supply-chain-carla-susmilch.
Buyers should make it their responsibility to ensure the new provisions are included in contracts, outlining the law and the ethical and moral accountability that the supply chain will be expected to adhere to in a coherent manner prior to nomination. Ensure that any confidential person's coming forward are and will be protected and their identities kept anonymous. Ensure risk management is applied and rigorous and regular audits are planned and followed through. A useful tool here could be the APQP (Advanced Product Quality Planning) - often carried out with other cross functional departments such as Supplier Quality.
"However, using technology to actively increase supplier engagement, supporting and strengthening supplier relationships has wider benefits. Working with, and developing the supply base will likely lead to increasing levels of supplier led innovation, helping companies to reduce risk, costs and increase innovation" Michael Murphy O'Reilly (2015) https://www.linkedin.com/pulse/buck-stops-board-shining-light-supply-chains-murphy-o-reilly