What is a Supply Chain?

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CREA 2011

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

Supply chains for each commodity are different, are unique to the product

All supply chains have some things in common

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.

It is not enough to have the raw materials

Or even the processed materials

People are key to any supply chain;

Without men and women working, supply chain s do not function

Supply chain focus: Bringing product to market

Value chain focus: Where can profit be made

Vendors or agencies

Contractors

Sub-contractors

Suppliers

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 Labour Convention, 1930

C-87 Freedom of Association and Protection of the

Right to Organize Convention, 1949

C-98 Right to Organize and Collective Bargaining

Convention, 1949

C-100 Equal Remuneration Convention, 1951

C-105 Abolition of Forced Labor Convention, 1957 *

C-111 Discrimination (Employment and Occupation)

Convention, 1958

C-138 Minimum Age Convention, 1973

C-182 Worst Forms of Child Labor Convention, 1999 *

NOTE: US has only ratified C-105 and C182

Basic Topic Requirements

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Compliance with All relevant laws

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Working hours

Compensation

Child and Juvenile Labor

Forced Labor

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Harassment and Abuse

Contract Labor

Freedom of Association and Right to Engage in

Collective Bargaining

Environmental Management

Anti-discrimination statement

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

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=WCMP04-

034203

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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