Supply chain solutions: Managing risk and performance in supply chains

1 Our globalized The low visibility of complex Mitigate world is complex supply chains can create blind your risk with and often unclear. spots for buyers. Intertek.

The growth in international trade has With today’s regulatory conditions Without real transparency in all Both buyers and suppliers have to exploded—and with it, globalization. and consumer expectations, supply chains, uncontrolled risks clear major supply-chain hurdles buyers need to understand and can result in claims, product as a prerequisite to bring goods As world trade escalates, it generates control the quality of products recalls and loss of goodwill and successfully to market. complex supply chains and, in turn, being imported. brand reputation. significant levels of risk. To achieve this, Intertek offers Transparent information is the next generation in supplier essential to manage risk management services: and ensure compliance with safety, security, social and → Cost controls environmental standards. → Performance measures As importing countries step up consumer-protection measures, → Risk and reputation it is critical to ensure the high management quality of all products entering the market. → Results communication

→ Improvement of compliance performance vs. industry benchmarks

3 Managing risk and performance in supply chains Our tools for more success

Intertek has developed a The current codes and reference Our full range of supplier series of cost-effective risk- standards have been extensively management and audit tools based assessment tools and researched and developed in allows buyers and suppliers audit solutions for buyers and collaboration with the world’s to map risks and demonstrate suppliers seeking to improve their leading consumer brands and compliance in supply chains with compliance with widely accepted retailers. greater visibility and transparency. industry standards and best practices.

Supplier risk management

Supplier audits of QUALITY aspects

Supplier audits of Intertek delivers SOCIAL aspects structure and transparency.

Supplier audits of SECURITY aspects

Supplier audits of ENVIRONMENTAL aspects 5 We make ends meet. Global Supplier Management

Don’t get lost. Our Global Supplier Management Consider our services: Risk-based analysis Enhance visibility platform and its suite of and reporting supplier audit programs provide Collection and validation and manage risk. insights for global companies of supplier information → Our dynamic reporting and to manage suppliers. We offer analysis will aggregate the insights for managing suppliers → Through our global in-country information collected into As global supply chains become with the transparency and network, we will contact your risk-based reporting to increasingly complex, it becomes more traceability needed to succeed supplier partners and validate help you make informed difficult for companies to keep track of in a competitive global business relationship status and decisions concerning their supplier partners. environment. the integrity of the supplier supplier relationships. information provided. From subcontractors and wholesalers Intertek’s vast experience in supply chain audits makes to intermediaries and domestic VERIFICATION and AUDIT importers, effective oversight and Global Supplier Management an indispensable tool. Business profiles SERVICES to validate management can be a nightmare. completion supplier practices To play in the global marketplace, → Suppliers complete a web- → Identity and credential companies must consider risk based risk assessment verification of business management, compliance, product questionnaire structured to licenses, permits, references traceability and increasing regulations. collect valuable information and other certificates about their business and provided. Don’t leave your company exposed. compliance practices. → On-site verifications of Intertek’s Global Supplier Management supplier’s full business platform is designed to save you time, → Issue-specific modules are profile provided online. money and risk. Developed for buyers available to collect additional and suppliers, it provides maximum information for conflict → AUDIT SERVICES covering visibility into the supply chain, which minerals, sustainability, SOCIAL, ENVIRONMENTAL, mitigates supply chain risk. It helps security, social workplace QUALITY, SECURITY and other protect brand reputation and reduce conditions and other issues based on areas of supplier management costs. reporting due diligence requirements. identified risk.

→ AUDIT SERVICES against industry standards and second- party customer-specific programs or requirements.

For more information, please visit globalsuppliermanagement.com 7 Can you see Your guide in all fields: through? Intertek audit services

Our innovative range of supplier risk Creating better suppliers More qualification Second party audits management and audit services provides enhanced transparency. With Our audit services facilitate Undertaking our audit services, Intertek also provides audit our simple toolkit, buyers can carry out continuous improvement, which also work as qualification services against second party benchmarking easily; suppliers can producing better suppliers. programs, allows you to increase customer-specific programs demonstrate progress. your facility’s compliance. or requirements, and training → All standards are aligned with and capacity-building options This means more visibility into the industry best practices. It enables you to map the for supplier performance credentials of any facility: another compliance risk in your supply improvement. innovation that makes Intertek the → All audit services are based chain through the effective market leader. on the continuous improvement use of reports and charts in approach. order to keep track of supplier Widely accredited performance against industry, → Suppliers are motivated country and global benchmarks. We are one of the largest service through industry, country and providers for audits under global benchmarking to improve industry-specific accreditation and evolve. Continuous improvement schemes:

→ Our programs are widely Intertek supplier risk → BRC adopted or accepted by many management services are not → BSCI global retailers and brands. the traditional pass or fail audit → EICC programs. Instead, continuous → ICS → Good performance will be improvement is possible with → ICTI recognized through achievement constant feedback and monitoring → SA8000 award or record participation. of results. The outcomes are → Sedex Identifying the needs and areas measurable through statistics. → WRAP for improvement, the current audit programs are divided into the following groups:

Social Environment Quality Security

9 GLOBAL Intertek audit services: Just one mouse click away. SUPPLY CHAIN The world’s largest community Global Supply Chain COMPLIANCE of verified suppliers Compliance

With over 35,000 participating Data mining Report sharing The platform is fully integrated GSCC benefits your business: facilities, Intertek’s range with Intertek’s audit programs of supplier audit services Intertek audit services create Suppliers and facilities can easily via our E-audit tool. This → Dashboard and detailed view: represents the world’s largest the world’s largest community of share audit reports with their innovative approach to on-site audit management and tracking, community of verified suppliers. suppliers and make data mining of clients. Intertek’s reports are data collection results in better including status and action supplier performance possible. recognized by most of the world’s performance analysis, reporting, tracking. Detailed reports enable suppliers leading buyers. and information management. → Integrated communication tool to know their strengths and with escalation alerts. challenges. This can help reduce audit fatigue The end result is higher visibility, and business disruption, as measurable outcomes and → Review and approval of audit Buyers can better manage suppliers and facilities do not have confident tracking of continuous results online. On-site their suppliers and make more to complete audits for different improvement. This enables → Real-time follow-up on audit verifications informed buying decisions. buyers. companies to tell their supply activities with online corrective chain story. performed action management. Benchmarking Achievement award → Standard and customized 35,000+ executive reporting. Benchmarking of supplier Our programs reward suppliers performance against country, who fulfill assessment criteria 25,000+ Intertek’s Global Supply All information from GSM industry or global averages with an achievement award or 22,500+ Chain Compliance software and all audit services in provides suggestions for record of participation. is fully web-based and helps one web-based platform targeted improvements, based 13,500+ you manage all activities at your service: on performance and challenging The awarded suppliers or related to our audit and 8.500+ factors. facilities can use the program management programs in 5,000+ logo and award as a valuable one single view. marketing tool to showcase their performance to buyers. 2008 2009 2010 2011 2012 2013 It provides an easy all- in-one solution to plan, schedule, track and analyze different kinds of audit activities at any time. GLOBAL SUPPLY CHAIN COMPLIANCE

For more information, please visit 10 intertek.com/auditing/gscc 11 A happy, healthy workforce is a more productive Maximize your potential: workforce. Workplace Conditions Assessment

Companies are demanding more Anchored in Intertek’s extensive The Workplace Conditions Business benefits: effective ways to evaluate their social compliance expertise, our Assessment program contains the suppliers’ workplace conditions. Workplace Conditions Assessment following five modules: → Improved working conditions program has emerged as a for a happy, healthier, productive Labor How do your suppliers measure up to powerful tool for evaluating, workforce. → Child labor benchmarking and continuously the competition in the same industry, → Forced labor country or global marketplace? improving supplier workplace → Discrimination → Better decision-making What are the greatest challenges facing conditions. → Discipline, harassment support based on real-time data your suppliers? Where should you or abuse and knowledge management. invest resources? The program is supported by → Freedom of association WCA uses a risk-based design a web-based platform that → Employment contracts and logical scoring criteria that The answers to these and other automates and streamlines the allow data mining across industry, questions are critical to the audit process. This increases Hours and wages sector and country benchmarks. → Wages and benefits improvement and overall performance efficiencies for all supply chain → Working hours of your supply chain. partners with clearer visibility → Flexibility to accommodate through measured results. Health and safety additional subject modules Our Workplace Conditions Assessment → General work facility to fulfill differing company program is Intertek’s cost-effective The assessment protocol is → Emergency preparedness requirements. These include solution. We help you improve workplace updated on an ongoing basis to → Occupational injury corporate governance and conditions efficiently, and in accordance incorporate changing trends in → Machine safety business integrity practices. with accepted best practices and the industry. This allows for closer → Safety hazards industry standards. alignment with industry norms → Chemical and hazardous → Reduction in excessive auditing materials and best practices as well as and duplication (“audit fatigue”) → Dormitory and canteen valuable customer feedback. through a community sharing Management systems program. → Systems policies and processes → Improved confidence in → Documentation and records partnerships with suppliers → Worker participation through greater transparency and → Corrective action process trust. Ability to showcase progress Environment with an achievement award. → Legal compliance → Environmental management systems → Waste and air emissions

For more information, please visit intertek.com/consumer/auditing/wca 13 Think Green Initiative

The Think Green Initiative The Think Green Initiative Business benefits program is the ideal tool for includes evaluating, reviewing and Provide greater visibility through monitoring environmental Two basic assessment environmental commitment and procedures to ensure improved modules: performance by: performance. It enables business to complete the trilogy: Think ENVIRONMENTAL → Meeting environmental Green, Act Green and Be Green. LEGAL COMPLIANCE regulatory requirements. A sustainable OVERVIEW approach to keep This service allows suppliers to → Reducing both environmental showcase their sustainability ENVIRONMENTAL footprint and costs. the value chain through energy, water, air, noise MANAGEMENT and waste practices and to stay SYSTEM (EMS) → Improving material efficiency green. current with “reduce, reuse, through better resource recycle.” management, including Six additional individual recycling, reuse of materials, In today’s global marketplace, assessment modules: and waste reduction. manufacturers and consumers are more concerned than ever about the WATER → Establishing sustainable impact of products on the environment. business practices. Companies all over the world are working to improve environmental AIR EMISSIONS → Leveraging insights for green practices across their supply chains. production and sustainable purchasing. ENERGY Our Think Green Initiative program enables suppliers and facilities to → Achieving good corporate SUSTAINABLE governance and preferred showcase environmental best practices PRODUCTION while improving the bottom line. supplier status. By reducing costs, improving materials NOISE EMISSIONS and committing to green manufacturing → Demonstrating commitment best practices, we can ensure a safer and robust “green” credentials environment that benefits business as HAZARDOUS to stakeholders (investors, MATERIALS, well as consumers. EQUIPMENT AND employees, community and WASTE customers).

For more information, please visit intertek.com/consumer/auditing/tgi 15 Environmental Chemical Management

A comprehensive approach Environmental Chemical Product Management Auditing enables: Intertek has developed a Intertek offers testing and systematic and comprehensive → Increased visibility deep into verification ensuring that approach to ensure that chemicals the supply chain. chemicals of concern are not are managed safely and present on the final product Managing and appropriately across the entire → Benchmarked results with delivered to the consumer. reducing hazardous supply chain. global visibility. Intertek has extensive chemical chemicals Offering a full range of risk → Management transparency to testing capabilities across our screening, training, auditing and enable targeted efforts. global network of more than throughout your capacity building, Environmental 1,000 laboratories and offices. Chemical Management is based → Consistent messaging across Intertek’s chemical certification supply chain. upon a three-tiered approach the supply chain. process ensures your processes targeting supply chain, people and and products do not contain product: → Identification of process banned or high-risk chemicals With mounting pressure from external efficiency and cost savings. in order to meet all safety stakeholders, as well as an eye toward regulations, including EU’s adverse long-term environmental Supply chain Registration, Evaluation, impacts, there is an increased demand People Authorisation and Restriction to reduce the use and manage the Intertek offers a comprehensive of Chemicals (REACH) and the output of hazardous chemicals and on-site and desktop audit-based Intertek trains and builds U.S. Consumer Product Safety other restricted substances from approach to verify appropriate capacity within your supply Improvement Act (CPSIA), as well factories and other facilities. chemical management systems chain to address chemical as those within your own are in place in facilities throughout regulation issues, chemical and restricted substances list (RSL) Do you have a comprehensive chemical the supply chain. Audits cover the restricted substances list (RSL) testing program. management program in place to entire journey of chemicals within management and handling, identify the source of these substances, a facility, from initial inventory wastewater management, and In the five years the chemical educate and train employees, implement to final disposal. These services alternative green chemistries to certification has been available, a plan for reduction and ultimately help you identify your hazardous address the issue at the source. Intertek has built a database of demonstrate your results? chemical risks in order to nearly 2,500 chemicals certified mitigate and establish chemical- from 350 different companies. management best practices.

For more information, please visit intertek.com/consumer/environmental-chemical-management 17 Supplier Qualification Program

Manufacture The audit standards of the Within these modules, the Business benefits Supplier Qualification Program standard program covers the with confidence. were developed by rigorous following areas: → Improved controls and surveys of global consumer processes for managing product brands and retailers. → Management commitment quality and safety. Product quality and safety have These surveys were focused and continuous improvement become increasingly important to on the consumer product → Improved speed to market and the health of your business. Tighter manufacturing industry to → Risk management systems reduced risk of product recalls. regulations can bring increased risk of individually address sector product recalls. International retailers needs. → Quality management systems → Better transparency and trust and buyers are looking for more between buyers and suppliers. effective ways to evaluate supplier Five modules: → Site and facilities manufacturing performance. management → Ability to demonstrate GENERIC HARDLINE measurable outcomes. With Intertek’s suite of Supplier MANUFACTURING → Product control Qualification Programs, we offer a → More informed decision- world-class industry standard that TOYS → Product testing and product making support based on real- measures performance and drives claims, including requirements time performance metrics. constant improvement through open GARMENT for CPSIA product testing and benchmarking. The program’s strength certification rules → Recognition through lies in its accredited training programs. achievement award for top Qualified trainers and auditors work FOOTWEAR → Process control performing suppliers. with risk-based scorecards to assure continuous and preventative action. → Personnel training and TRIMS competency

Supplier Qualification Programs bridge key sustainability measures with quality performance. Purchasers can base buying decisions in accordance with value drivers beyond price.

For more information, please visit intertek.com/consumer/auditing/sqp 19 Better information means better buying decisions. Mill Qualification Program

In the competitive apparel sector, The Mill Qualification Program and seven core modules: Business benefits retailers and brands are increasingly (MQP) bridges key sustainability measures with quality GENERAL Provides greater visibility and concerned about the quality of the IMPLEMENTATION textiles. They know that textile quality performance. Buyers can make quality control measures on fabric is crucial to the quality of the finished their purchase decisions based on sourcing and mill’s performance SPINNING garment. value rather than price alone. by:

The challenge requires accessing The Mill Qualification Program WEAVING → Gaining instant access to a reliable data on a facility’s social and includes two core evaluation comprehensive and independent environmental performance as well as modules: evaluation of a mill’s technical efficiency and overall quality. KNITTING capabilities and quality standards. LAB CERTIFICATION → Mitigating risk by proactively The Mill Qualification Program (MQP) PREPARATION helps drive much of the complexity and Certification of mill laboratory DYEING spotting potential quality issues. redundancy out of the procurement capabilities and technical PRINTING These could lead to supply process. This is carried out through a inputs for fabric performance FINISHING interruption or unexpected unified and standardized approach for testing using industry-accepted problems during the expensive methodologies and standards cut-and-sew stage. mill performance measurement in key COLOR PROCESS areas. It also includes quality assurance, (e.g., AATCC, ASTM, EN/ISO). lab certification and environmental → Delivering quality independent sustainability. FABRIC TESTING third-party expertise based on QUALITY LABORATORY PERFORMANCE accepted industry practices.

Evaluation of all stages of fabric → Leveraging Intertek’s global production: fiber production, network of technical experts to processing and spinning, yarn navigate a growing number of preparation, weaving/knitting, worldwide mills. fabric bleaching, dyeing, printing, and finishing. → Benchmarking and instantly verifying a new mill’s capabilities and environmental performance. This accelerates the decision- making process and speed to markets.

→ Fixing fabric quality defects early in the life cycle of a garment.

For more information, please visit intertek.com/consumer/auditing/mqp 21 Your solution to enhance supply chain security: Global Security Verification

Intertek’s Global Security Global Security Verification Business benefits Verification program employs integrates multiple global supply a cutting-edge methodology chain security initiatives that → Enables importers and for promoting best practices include C-TPAT, PIP, AEO and suppliers to leverage efforts Enhance visibility throughout the global trade other mutually recognized through a common industry industry. It enables importers and international standards. platform and collaboration. and manage risk. suppliers to mitigate risks Our mission is to partner associated with the cross- with international suppliers → Delivers effective data border transport of goods. and importers to drive the gathering, analysis and reporting After the events of September 11, 2001, Simultaneously, it expedites their development of a global capabilities. These allow for risk governments and customs organizations arrival at destination markets. security verification process. mitigation and more informed around the world implemented new Best practices are achieved The result will be increased decision-making for all supply supply-chain security standards. through the effective utilization safety assurance, risk control, chain partners. These secure trade flows, combat illegal of resources, structured processes efficiency, and cost savings for all trafficking, and protect the security and and innovation. participants. → Reduces audit fatigue by safety of people and companies doing enabling suppliers to share their business around the world. Our Global Security Verification verification reports with various program covers: importers. This allows them The enhanced supply chain security to prioritize resources based Global Security Verification standards and criteria, including C-TPAT, → Storage and distribution on learning and continuous integrates multiple supply improvement rather than repeat PIP and AEO, have been recognized → Shipment information controls chain security initiatives. and implemented by the global trade auditing. → Records and documentation They represent the Global community. As part of enforcing and → Contractor control Security Verification adhering to the international supply → Employs a consistent scoring program’s criteria: chain security standards, companies → Personal security methodology across all players. must assess their supply chain to → Supply chain transparency This is combined with the use of automated tools to provide identify, mitigate and eliminate potential → Physical security C-TPAT (U.S.) security risks. Customs Trade Partnership increased audit efficiency, → Information access control Against Terrorism consistency and better reporting. → Export logistics Intertek’s approach—Global Security Verification—is a solution for companies PIP (CANADA) who must comply with the requirement Partners in Protection of segmenting and understanding their supply chain risk. AEO (EU) Authorized Economic Operators

For more information, please visit intertek.com/consumer/auditing/gsv 23 Strategic value Leverage knowledge. for your business. Intertek Business Assurance Services

Management systems auditing helps As an accredited third-party Sector Specific Solutions you find and implement best practices registrar, we provide independent for continual improvement. verification that your management Aerospace – AS9100 Series Business continuity and risk Intertek’s comprehensive auditing and system is effective in achieving auditing and certification management certification services give you the tools your business objectives. We also you need to evaluate and continually certify that it meets internationally In the highly regulated aviation, Intertek offers certification improve your business processes. With recognized standards such as ISO space, and defense industries, services to help your organization a high level of technical expertise and 9001, ISO 14001, OHSAS 18001, compliance with quality maintain critical business a customer-focused approach, we and much more. management system (QMS) functions in times of disaster. provide insights that add strategic value standards is a mandatory step This includes how to plan, to your business. Our internal audit, second-party that must be completed in order establish, implement, operate, supplier audit, and Performance to be considered a qualified monitor, review, maintain and Model Process Analysis services supplier. Intertek’s certification continually improve a documented will help you proactively monitor of your QMS to AS9100/EN9100, management system in order performance while saving AS9003, AS9110, or AS9120 to prepare for, respond to and valuable time and money. provides you with the credentials recover from disruption. We needed to pursue new business are currently in the final stages Additionally, as one of the top opportunities, both domestically of upgrading our existing BCM providers of IRCA registered and internationally. program based on BS 25999 to the auditor training in the world, new requirements of ISO 22301. we offer classes and seminars that are designed by practicing Automotive – ISO/TS 16949 auditors to share best practices auditing and certification Food – Safety auditing and and new industry requirements certification in management systems Your management system’s certification. certification to ISO/TS 16949 will With our in-depth knowledge help you reduce the complexity of industrial processes, good By partnering with Intertek, you and overhead required to manufacturing practices, and total can leverage the knowledge administer separate proprietary quality management, together and expertise of one of the most programs for individual with our extensive international experienced certification bodies customers. Intertek’s deep network of pharmaceuticals in the industry. expertise and long history of experts, we can help you achieve leadership in the automotive conformance to GMP guidelines, industry helps us deliver a truly to secure their commercial efficient and cost-effective position and provide them with the auditing solution. capacity to expand further.

25 Health and Beauty – Good Medical Devices – Regulatory Energy management systems Manufacturing Practice review services ISO 50001 of Cosmetic (GMPC) audits We provide a full suite of expert ISO 50001 establishes a As the cosmetic industry third-party solutions to regulatory framework for industrial plants, continues to experience a surge compliance, including Notified commercial facilities, or entire in technological advancements Body technical fi le reviews for organizations to manage energy. and improved quality procedures, CE marking, FDA 510(k), 93/42/ According to ISO, the standard brands are tightening supplier EEC (MDD), premarket reviews, could influence up to 60% of the requirements of factory hardware, and FDA Accredited Person facility world’s energy use, with broad facilities, environment, hygiene, inspections. applicability across national personnel, and management economic sectors. systems. Intertek offers GMPC audits according to standards Environmental independent Intertek is fully accredited to such as ISO 22716. verification and certification offer third-party certification to the ISO 50001 standard by the Intertek can verify your products Swedish Board for Accreditation IT – Service and information and processes against internal and Conformity Assessment security management systems and existing environmental (SWEDAC). Since 2006, we have certification standards to help measure and provided certification to EN 16001 improve environmental impacts. and the Swedish national energy We can provide you with Areas of focus include carbon and management standard. We are competitive advantages by water footprint calculation and able to bring this experience to assessing and certifying the reduction, energy management, all of our clients globally, while quality and safety of your systems, waste management and recycling, leveraging our extensive expertise processes and products. We can and green building efficiencies, in the related standards ISO 9001 also confirm the appropriateness as well as other sustainability and ISO 14001. and integrity of your production initiatives. Additionally, our third- and distribution methods. We offer party data verification services global quality and safety solutions ensure the credibility of your and best practices for every corporate environmental and aspect of your business, from field sustainability reporting. to fork.

27 Share experience. Gain insight. Be part of the solution. Become a leader. Ethical Sourcing Forum

The Ethical Sourcing Forum is a unique A company’s supply chain Since its inception in 2000, the Attending the Ethical Sourcing annual industry event. It brings together decision-making is constantly Ethical Sourcing Forum is one Forum will reap many benefits: members of the global community to realigning in response to global of the longest-running annual address emerging sustainability and markets. It is impacted more and events focusing on supply chain → Gather and exchange ethical supply chain challenges. more by social and environmental issues. It is open to all who are experiences about good realities. The challenge is to willing to play an active role in the implementation practices. leverage these realities as development and implementation drivers, rather than inhibitors, of of sustainable social and → Build partnerships, network business success. Today’s leading environmental supply chain and engage with relevant sustainability decision-makers practices. stakeholders. have internalized this shift in perspective. Their new decision- → Increase your awareness and making techniques reflect strengthen your ability to reach a rethinking of the business your goals. landscape. → Benchmark your current The Ethical Sourcing Forum experience with other industry compiles practical knowledge of practitioners. new approaches that contribute to sustainable supply-chain → Strengthen your ability to practices. These are based on impact key issues that are projects and initiatives undertaken important to you. by organizations engaged in off-the-ground supply chain → Return home with activities. The latest solutions- recommendations to strengthen development processes yield your current performance. social and environmental progress while advancing core business objectives.

For more information, please visit ethicalsourcingforum.com 29 All rights reserved. © Intertek 2013 31 Intertek is a leading provider of quality and safety solutions serving a wide range of industries around the world. From auditing and inspection to testing, quality assurance and certification, Intertek people are dedicated to adding value to customers’ products and processes, supporting their success in the global marketplace. With a network of more than 1,000 laboratories and offices and over 36,000 people in more than 100 countries, Intertek helps its clients to meet end users’ expectations across increasingly diverse quality, health, environmental, safety and social accountability aspects in virtually any market around the world. www.intertek.com

For more information on supplier management and audits please email us: [email protected]