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Enabling Responsible International Workplaces New FFC Partnership Model.

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Presentation on theme: "Enabling Responsible International Workplaces New FFC Partnership Model."— Presentation transcript:

1 Enabling Responsible International Workplaces New FFC Partnership Model

2 Enabling Responsible Supply Chains Topics Covered  Who is the FFC?  What is the partnership model?  Why is the FFC expanding membership?  What are the new FFC membership categories?  What are some of the incentives to join?  What comes along with each membership to the FFC?  How will it change for existing members?  What will membership cost?  When is this new partnership model taking effect?

3 Enabling Responsible Supply Chains Who is the Fair Factories Clearinghouse?  A non-profit organization that: Offers technology tools to members to manage the compliance practices of their global supply chains, as well as to collaborate with others on supply chain compliance Enables a membership community and collaborative monitoring practices to pool resources & expertise Advances knowledge about global workplace conditions

4 Enabling Responsible Supply Chains What is the FFC’s Mission?  Technology empowers companies to conduct ethical sourcing  Experienced partners share capability, enhancing effectiveness beyond a single company’s experience  Collaboration throughout the supply chain reduces audit fatigue and contributes to factory improvements  Global Clearinghouse improves availability, comprehensiveness and standardization of factory information, and advances efforts to improve global workplaces Our Plan Our Path

5 Enabling Responsible Supply Chains Clearinghouse Concept

6 Enabling Responsible Supply Chains What is the partnership model?  The partnership model is a fresh look at membership types in the FFC that is inclusive of all supply chain actors, in order to create opportunities for information management, data exchange, transparency and collaboration at any level in the supply chain  Any actor in the supply chain will be able to join the FFC and use its software tools, for a minimal fee, to manage its compliance performance, and then provide visibility to its buyers and partners: Membership at the “top” of the supply chain will remain as it does Membership to the FFC (and the use of the FFC software) will be expanded to supply chain actors in the “middle” and the “bottom” of the supply chain, as well as any service providers servicing them

7 Enabling Responsible Supply Chains What are the new FFC membership categories?

8 Enabling Responsible Supply Chains Why is the FFC expanding membership? We seek to augment our ability to meet our mission by:  Expanding our reach of our clearinghouse of factory information  Creating more opportunities for collaboration, reducing audit fatigue  Supporting a “bottom-up” approach to compliance, where suppliers manage the entire compliance process, and companies who operate  Providing tools to supply chain actors that enable them to manage and share compliance information for its buyers  Bringing in the expertise and contacts of service providers into our membership community, and easing their implementation for clients  Gaining access to additional data for analysis, derived from multiple sources  Opening additional sources of revenue

9 Enabling Responsible Supply Chains Gain full access to innovative software to manage the nuts and bolts of compliance programs View / Manage compliance data of suppliers and/or production sites (owned or outsourced) Identify supply chain overlap, and message others (even if hidden) to initiate collaboration Provide system access to suppliers and business partners and assign them tasks in the system Share compliance data (self-assessments, audits & CAPs) with customers Access compliance documents posted by other members on the sharing platform Collaborate with others on joint audits & CAPs, to reduce audit fatigue Network with other FFC members to share expertise Option to participate in FFC governance, shaping future of the organization Option to participate in FFC member-driven working groups to drive program innovation Purchaser IntermediarySupplier What are some of the incentives to join?

10 Enabling Responsible Supply Chains Access to FFC’s Audit Management Software Access to FFC’s Sharing Platform (Full) Access to FFC’s Sharing Platform (All, minus access to purchaser’s posted documents) Unlimited use of audit management solution for supply chain Own only System set-up, member-integration into system time & materials Helpdesk support, through FFC’s online ticket system One-On-One system training and consultation time & materials Participation in FFC’s regularly scheduled training webinars (offered monthly) Custom reports, custom system development time & materials Purchaser IntermediarySupplier What do membership fees include?

11 Enabling Responsible Supply Chains Audit Management System (AMS)  Set your own security and access rules in administration  Manage factory data, including contacts  Deploy self-assessment tools  Create customized audit questionnaires / instruments  Request, schedule, deploy and record audits  Manage corrective action plans  Record audit results offline  Store audit / assessment documents  Create and communicate supplier designations / statuses  Analyze workplace /supply chain information  Produce custom reports / exports on any data element

12 Enabling Responsible Supply Chains What will the AMS give each member? Purchaser - Full IntermediarySupplier Accounts Sourcing Designation Standard Documents Self-Assessments Audits CAPs Audit Scheduling / Calendar Worker Exposure Reports Administration (related) Purchaser - Sharing

13 Enabling Responsible Supply Chains Sharing Platform (SP)  Search factories  Identify supply chain overlap and opportunities for collaboration  Access shared compliance documents (if purchaser)  Share factory lists and compliance documents (anonymously or not)  Message other members (even if hidden) to initiate collaboration  Use secure online audit and CAP tools for joint activity across companies, to collect progress reports and manage performance

14 Enabling Responsible Supply Chains Purchaser - Full IntermediarySupplier Factory List Overlap Search Shared Documents Post / Share Documents Messaging Joint Audits & CAPs Administration Purchaser - Sharing What SP tools does each member get?

15 Enabling Responsible Supply Chains How will it change for existing members?  The use of the system for our current members and their users will not change at all.  All will continue to use the system as is, including having their suppliers log in on their behalf. Members will still control what a supplier can see and do in their system, but now if that supplier also joins the FFC, they will also get their own version of the system.  Scenario: Company X is a current FFC. X created an account in their system for their trading agent, Agent. X gave an Employee of Agent access to the system to upload corrective action plans. Agent also became an Intermediary member of the FFC. Employee will have two versions of the software: Logging in for X, where she upload audits only for factories where X has given her access Logging in for Agent, where she has full use of the system as defined by Agent’s system administrator

16 Enabling Responsible Supply Chains  Annual Fees: Supply Chain Intermediary - $500 Supplier - $100 Service Provider - $4,000 Trade Association Partner - $10,000 What will membership cost for supply chain actors?

17 Enabling Responsible Supply Chains What will membership cost for purchasers?  Purchasers pay annual dues and an integration / set-up fee based on net revenues (gross annual income from “private label” and / or “importer of record” products)  Purchasers who are members of the National Retail Federation or the Retail Council of Canada) receive a 20% discount on annual dues  Purchaser members will receive a credit towards their next year’s annual dues for every intermediary and supplier in their supply chain who joins the FFC. Credits for shared factories will be split evenly across active members. Credits will be capped at 40% of the company’s annual dues in any 12- month period

18 Enabling Responsible Supply Chains When will this take into effect?  Membership categories are now open for all, and any actor can join at any time  However, additional activities to support this will be live in September: The FFC is creating an online registration and payment system, to ease FFC’s administrative costs and member sign-ups The FFC will prepare welcome kits and user manuals The FFC will begin regular training webinars for ongoing enrollment, supporting various time-zones  For more information:

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