The complexity of global supply chains means homeworkers may be involved without retailers knowing. Standards can be maintained and risks minimised through supply chain mapping
A new report ‘Stitching our shoes’ from campaign groups Labour Behind The Label and Homeworkers Worldwide has revealed that thousands of women in India are stitching leather uppers of shoes bound for the UK in their homes for low wages and with little security. The groups claim that this invisible female workforce makes up a key part of the leather shoe supply chain and believe that because of the complexity of global supply networks, many retailers may not even be aware that this is taking place right under their noses.
The need for true supply chain transparency
The campaign groups believe they should be recognised fairly, and that all shoe brands should publicly map their supply networks, from the processing of leather all the way through to the final product. This level of transparency would not only benefit the workers, but also companies, who would have a far better grasp and understanding of their networks as a result.
The risks of an ever changing unmapped supply chain
Many businesses are unaware that their supply chains could be changing regularly in the lower tiers or that factories could be subcontracting work out to unapproved homeworkers without their knowledge. This is a huge risk for retailers, who could potentially be placing themselves at risk of disruption, quality issues and reputational damage, amongst other things, by not understanding and keeping track of these changes within their networks. Retailers who have issued statements in response to the Modern Slavery Act will need to carefully consider how to track changes in a supply chain.
Maintain standards through supply chain mapping
Thorough audits and full tracking throughout the network is critical to ensure that suppliers have the capacity to deliver the volumes required and to the correct standards. Segura allows retailers to do this with ease, mapping the entire supply chain and detailing exactly who is in it, what they provide and where they are. Audits can also be uploaded to give retailers extra peace of mind, knowing that suppliers are adhering to the standards expected.
Orders can be placed and monitored directly through the system too, which means retailers are immediately notified if orders are not placed within the authorised supply network or if any anomalies are detected. This level of detail means businesses are always one step ahead, and can rest assured in the knowledge that only approved suppliers are involved with the production of their products.
Greater supply chain transparency helps minimise risk
By striving for transparency, businesses afford themselves a competitive edge and minimise risk by ensuring only trusted suppliers are part of their supply chain. Ordering through Segura means that quantity or quality issues can be quickly identified and checked.
For many retailers, the complexity of global supply chains poses many obvious compliance issues and areas of risk. The ever changing nature of the lower tiers of some networks, further adds to these concerns. By gaining full supply chain transparency with Segura, retailers can identify cases of homeworkers/supplier change and work with their suppliers to minimise risk.
