Many retailers devise a policy on ethical sourcing, trying to stock items that conform to such things
Question:
Many retailers devise a policy on ethical sourcing, trying to stock items that conform to such things as workplace standards and business practices, health and safety conditions, human rights, legal systems, child labour, disciplinary practices, wages and benefits, etc. Some suppliers have focused specifically on guaranteeing their sourcing integrity. One such is The North Face, part of the VF Corporation – a
$9 billion giant that dominates the leisurewear garment market. Named for the coldest, most unforgiving side of northern hemisphere mountains, its range of high-performance outdoor apparel, equipment and footwear has developed a reputation for durability, fashionable styling and, increasingly, sustainable sourcing of its materials. VF Corporation’s claim is that it responsibly manages the industry’s most efficient and complex supply chain, which spans multiple geographies, product categories and distribution channels. The North Face is keen to promote sustainable purchasing in its supply chain management. Its commitment to sustainability, it says, comes from a desire to protect the natural places associated with how and where its products are used and from its concern about the effects of climate change. As a sign of its determination to pursue sustainable purchasing, The North Face has partnered with the independent bluesign standard – a Swiss-based organisation that promotes maximum resource productivity with a view to environmental protection, health and safety –
thus representing an assurance for manufacturers and retailers that today’s quality criteria are fulfilled in the best possible way, and that applicable regulations and limits are complied with.
(a) What do you think motivates a company to draw up a policy of this type?
(b) What other issues would you include in such a supplier selection policy?
Step by Step Answer:
Service Operations Management
ISBN: 978-1292064468
5th Edition
Authors: Robert Johnston ,Michael Shulver ,Nigel Slack ,Graham Clark