March 2015 will go down as a turning point in the global bid to end modern slavery and trafficking - and Britain is leading the way. In one of the final pieces of legislation handled by the coalition government, the Modern Slavery Act was passed into law. Three months later, UK businesses are starting to respond to the act's wide-ranging implications.
Some details, such as the size of companies that will fall under the law's disclosure requirements, are yet to be finalised. We won’t understand the full extent of the act's reach until these parameters are defined. However, home secretary Theresa May was right to describe the law as "an historic milestone". For the first time ever, businesses will be required to submit a slavery and human trafficking statement for each financial year.
At Segura, we think supply chain visibility is a prerequisite for good business. Companies with large and extended supply chains should not wait for the threat of legislation to start auditing their suppliers and building transparent relationships with all their partners. However, we hope the act will provide existing campaigns to reduce supply chain risk and address compliance issues with greater impetus. We know many organisations are already taking these steps - the Modern Slavery Act is further proof that they're on the right track.
Stepping up supply chain visibility
James Gregson, UK head of sourcing and procurement at Deloitte, told Supply Management earlier this year that some firms will need to "step up" in order to comply with the law. He noted that the drive to increase transparency throughout supply chains has been a trend "for five to ten years now", but added: "There are still many organisations that look into those risk and compliance issues at the point of purchase, rather than through the lifecycle of their relationship with suppliers."
Ensuring visibility throughout an organisation's extended network of suppliers - and for the entire lifecycle of those relationships - is what Segura software is designed for. And this level of supply chain visibility is precisely what businesses will have to achieve if they are to comply with the Modern Slavery Act, specifically section 54: 'Transparency in supply chains etc'.
In this section, the law says an organisation will be expected to provide details of the steps it has taken to ensure that slavery and human trafficking is not taking "in any of its supply chains" and "in any part of its own business". Without a complete supply chain visibility solution, it will be simply impossible for organisations to provide credible disclosure against these requirements.
Working with an audit company such as our partner AsiaInspection, Segura can help organisations to achieve the level of visibility required. Our cloud-based technology provides a comprehensive audit trail that allows you to track every element of your interactions throughout the extended supply chain - ensuring that every supplier you use is compliant with the legislation.
As organisations step up their supply chain monitoring efforts in response to the Modern Slavery Act, the tools they select to provide transparency will become increasingly important. Get in touch today for more information about how Segura can help your business.
