What is a Supply Chain?

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CREA 2011
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The process by which a product is assembled
from component parts and brought to market
The process by which a an agricultural
product is brought from where it is grown to
the market
Each process can have many steps
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Supply chains for each commodity are
different, are unique to the product
All supply chains have some things in
common
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Raw materials
How materials are processed
How the processed materials become
components of the final product
All the processed materials needed for a final
product
Cloth
Thread
Buttons
Zippers
Cutter
Sewer
Packager
Transporter
Distributor
Seller
Wires
Case
Motherboard
Chips
Etc.
Minerals
Metals
Plastic
Etc.
Miners
Smelters
Assemblers
Etc.
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It is not enough to have the raw materials
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Or even the processed materials
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People are key to any supply chain;
Without men and women working, supply
chain s do not function
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Supply chain focus: Bringing product to
market
Value chain focus: Where can profit be made
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Vendors or agencies
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Contractors
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Sub-contractors
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Suppliers
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Tiers
= Standards set for the Workplace
Based on Country Law
International Standards including the Core ILO
Conventions
Company’s Code
RULE: For each issue, whichever is the highest
standard applies
Many countries do not have laws addressing
workplace safety and worker’s rights
Even if they do have laws on the books,
enforcement system can be weak or
non-existent
C-29
C-87
C-98
C-100
C-105
C-111
C-138
C-182
Labour Convention, 1930
Freedom of Association and Protection of the
Right to Organize Convention, 1949
Right to Organize and Collective Bargaining
Convention, 1949
Equal Remuneration Convention, 1951
Abolition of Forced Labor Convention, 1957 *
Discrimination (Employment and Occupation)
Convention, 1958
Minimum Age Convention, 1973
Worst Forms of Child Labor Convention, 1999 *
NOTE: US has only ratified C-105 and C182
Basic Topic Requirements
- Compliance with All relevant laws
- Working hours
- Compensation
- Child and Juvenile Labor
- Forced Labor
- Harassment and Abuse
- Contract Labor
- Freedom of Association and Right to Engage in
Collective Bargaining
- Environmental Management
- Anti-discrimination statement
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Between Codes or Standards for Direct
Employees
Codes for Workplaces in Supply Chains
It is not either/or…….the magic word is AND
BOTH are necessary
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The Code is succinctly stated with an
application manual provided which expands
on the code
The Code and application manual are
provided in one document
Both are fine as long as the necessary
components are in the materials
Gap – Code of Vendor Conduct
http://www2.gapinc.com/GapIncSubSites/csr/
EmbracingOurResponsibility/Governance/Gov_COVC.shtml
Target Code of Vendor Engagement
http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04034203
Walt Disney Company
http://corporate.disney.go.com/citizenship/codeofconduct.html
Try searching on the internet for the code of
companies in which you are interested. Codes
should be easy to find.
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