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Supplier Social Report 2011

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Supplier Social Report 2011 PUBLISHER: JACK WOLFSKIN AUSRÜSTUNG FÜR DRAUSSEN GmbH & Co. KGaA 65510 Idstein Germany www.jack-wolfskin.com EDITORIAL: Melanie Kuntnawitz Head of Vendor Control Kai-Ingela Gerasch Assistant Manager Vendor Control LAYOUT: intention Werbeagentur GmbH, Bonn, Germany ADDITIONAL INFORMATION ON JACK WOLFSKIN’S SUPPLIER CORPORATE RESPONSIBILITY [email protected] SOCIAL REPORT 2011 FOREWORD CONTENTS 1 FOREWORD 3 2 ABOUT JACK WOLFSKIN 4 2.1 2011 facts and figures (as of 02/2012) 5 2.2 International sales channels 7 2.3 Sales trend 2006 to 2011 8 2.4 JACK WOLFSKIN’s organisational structure 10 2.5 Product divisions 13 3 CORPORATE RESPONSIBILITY 16 3.1 An evolving society 18 3.1.1 2011 sustainability studies 18 3.1.2 An evolving society in Asia with Vietnam as an example 19 4 2011 TARGETS AND RESULTS 20 5 PURCHASING STRATEGY 22 5.1 Socially responsible manufacturer management 22 5.2 New process for sourcing manufacturers 24 5.3 Auditing and evaluation criteria 25 5.3.1 Expanding the JACK WOLFSKIN evaluation scale 26 5.3.2 Wage ladder 28 DEAR FRIENDS OF JACK WOLFSKIN, improvement. 7% are highly critical. Proactive measures 6 2011 AUDITS 29 WITH OUR SUPPLIER SOCIAL REPORT 2011, WE ARE were taken wherever a worsening of the situation had 6.1 Overview of audited manufacturers 30 CONTINUING ALONG OUR CHOSEN PATH OF SOCIAL been observed. If the supplier did not make any improve - AND CORPORATE RESPONSIBILITY AND AGAIN PRO - ments, collaboration was terminated. 6.2 Overview of 2011 audit results 34 VIDE YOU WITH AN OPEN AND TRANSPARENT REPORT. In order to expand the manufacturer portfolio over the 6.3 Summary of audit results per country 35 long term, we implemented a new sourcing process in 6.3.1 Vietnam 35 We have done this for two reasons: to promote responsi - 2011 which ensures new manufacturers are evaluated 6.3.2 China 36 bility within the company and allow you the opportunity and meet criteria before the first production contract. 6.3.3 Thailand 37 to enter into a detailed discussion with us. Our objective This process also continuously protects us from “supplier has never been, nor can it ever be, to attain perfection hopping”, a common scenario in the textile industry in 6.3.4 Bangladesh 38 and fully eliminate mistakes. Rather, it has always been which last-minute contracts are offered to new suppliers 6.3.5 India 39 and should always be to learn and improve. We take this on a seasonal basis, usually with the sole aim of cutting 6.3.6 Cambodia 40 aim seriously, which is why we welcome independent prices. 6.3.7 Indonesia 41 monitoring and public discussion. We were delighted to discover that high-quality suppliers 6.3.8 Bulgaria 42 Over the years, we have learnt that perseverance and are more likely to offer transparency in terms of social conviction are key to achieving goals. This also applies to conditions and monitoring. We increasingly participate 6.3.9 Slovenia 43 social responsibility. in dialogue and development processes, as suppliers can 6.3.10 Italy 44 We set ambitious goals again for 2011 and also achieved benefit from quality development and protect them - 6.3.11 Turkey 45 a great deal: selves over the long term. 6.3.12 Romania 46 We managed to increase our auditing quota to 100% in As always, the objective is to regard all these results and 6.3.13 Taiwan 47 2011 as planned. We were also able to improve the pro - processes fairly with mutual respect and utmost respon - duction conditions of 27% of our suppliers, whilst 66% sibility and act correspondingly. We will continue along 6.3.14 South Korea 48 remained unchanged and just 7% worsened. our path and would be delighted for you to join us. 7 TRAINING AND SUPPORTIVE MEASURES 49 However, we are still far from reaching our goal. 26% of 8 2012 TARGETS 49 our suppliers are still in the critical category and require WE MIGHT EVEN SEE YOU IN THE GREAT OUTDOORS! 9 FAQ ABOUT SOCIALLY RESPONSIBLE MANUFACTURER MANAGEMENT 50 Christian Brandt, May 2012 2 JACK WOLFSKIN supplier social report 2011 3 2 ABOUT JACK WOLFSKIN Who we are: JACK WOLFSKIN was established in 1981 and has since been developing top-quality, functional, application- ori ented products. THE GREAT OUTDOORS ARE OUR PASSION. The basic idea behind all JACK WOLFSKIN products is to With a range of patents and innovative in-house tech - WHETHER IT’S IN THE MOUNTAINS, THE WILDER - combine superior functionality with exceptional levels of nologies, JACK WOLFSKIN products are now leading the NESS, FARAWAY COUNTRIES OR THE COUNTRYSIDE comfort. Outdoor activities should be fun and the brand way in terms of function, comfort and user benefits. They JUST BEYOND YOUR FRONT DOOR, WE DEMAND products should make the user feel at home outdoors at are now also sold and used all over the world. THAT JACK WOLFSKIN PRODUCTS OFFER OUR CUS - all times. With this conviction, we’ve been successfully TOMERS THE BEST PROTECTION POSSIBLE AGAINST manufacturing functional apparel, equipment and ) 2 WIND, RAIN AND THE COLD – SO THAT THEY FEEL footwear for outdoor activities, travel and leisure since S ESTABLISHED: 1 0 “AT HOME OUTDOORS”. 1981. We ensure that all our products fulfil the require - E 1981 IN FRANKFURT 2 ments of the user and the various activities and that the / R 2 We focus on highly active people who enjoy spending a production processes are as sustainable as possible – with 0 U lot of time outdoors, attaining their goals, exploring a focus on people and nature. F O HEADQUARTERS: new places and landscapes, and treating both people With extensive investments in research and development, G IDSTEIN (TAUNUS, HESSE) SINCE 1997 S I and nature with respect. Activities range from climbing JACK WOLFSKIN is always working on innovative designs A ( F and trekking tours to day hikes and long-distance travel. and materials which make the products even more ver - LEGAL FORM: satile and application-oriented. When it comes to devel - GMBH & CO. KGAA D OUR GOAL IS TO MOTIVATE AND HELP AS MANY oping new products, we focus on weather protection, N PEOPLE AS POSSIBLE TO EXPERIENCE NATURE. high breathability, climate and wear comfort. EMPLOYEES: APPROX. 630 (AS OF 02/2012) A Weather protection is our primary focus: MANAGEMENT: S Whether it’s in the wind, rain, snow or cold, our cus - MANAGING DIRECTOR: MICHAEL RUPP (SINCE 1 JULY 2012) T tomers need to be able to rely on our apparel, footwear DIRECTOR OF OPERATIONS: CHRISTIAN BRANDT and equipment. As such, we pursue application-oriented C DIRECTOR OF FINANCES: ANDREAS KLOTZ concepts designed specifically for the unique require - A DIRECTOR OF SALES: MARKUS BÖTSCH ments of the activity in question and based on technolo - F gies developed in-house, some of which are patented, EUROPEAN HEADQUARTERS 1 and functional fabrics developed in the laboratories of CENTRAL WAREHOUSE: NEU WULMSTORF specialist manufacturers. What’s more, over 30 years of 1 product development expertise and user feedback go 0 2011 FINANCIAL YEAR: €355 MILLION into creating JACK WOLFSKIN’s sophisticated products. 2 All the while, we strive to combine functionality and com - MARKET POSITION: fort. For us, top quality is a matter of course. 1 EUROPE’S LEADING SUPPLIER OF FUNCTIONAL OUTDOOR AP - . PAREL, FOOTWEAR AND EQUIPMENT AND THE LARGEST FRAN - 2 CHISOR IN THE GERMAN SPECIALIST SPORTS RETAIL MARKET 4 JACK WOLFSKIN supplier social report 2011 5 2.2 INTERNATIONAL SALES CHANNELS EUROPE (AS OF 02/2012) JACK WOLFSKIN STORES IN: GERMANY 235 ASIA (AS OF 02/2012) AUSTRIA 17 CHINA 322 SWITZERLAND 12 KOREA 14 BELGIUM 8 ITALY 7 UK 6 LUXEMBOURG 4 FRANCE 4 POLAND 2 NETHERLANDS 2 RUSSIA 1 JACK WOLFSKIN sells its products through a range of sports retail industry. There are now over 4,000 points retail channels: specialist outdoor retailers, specialist of sale which offer JACK WOLFSKIN products through - sports retailers and JACK WOLFSKIN franchise stores. out Europe. JACK WOLFSKIN is the largest franchisor in the German 6 JACK WOLFSKIN supplier social report 2011 7 2.3 SALES TREND 2006 TO 2011 THE SALES TREND BETWEEN 2006 AND 2011 DEMONSTRATES CONTINUOUS ANNUAL GROWTH OF OVER 20 %. €m 355 350 304 300 251 250 205 200 156 150 129 100 50 6 7 8 9 0 1 0 0 0 0 1 1 0 0 0 0 0 0 2 2 2 2 2 2 Figure 1: Sales trend 2006 to 2011 Abbildung 2: Organigramm von JACK WOLFSKIN 8 9 2.4 JACK WOLFSKIN’S ORGANISATIONAL STRUCTURE JACK WOLFSKIN APPROACHES THE ISSUE OF SUSTAINABILITY FROM TOP MAN - AGEMENT DOWN AND ACROSS ALL LEVELS WITH SELF-UNDERSTANDING, WHICH IS ALREADY VISIBLE IN THE ORGANISATIONAL STRUCTURE. MANAGEMENT BOARD FINANCE LOGISTICS SALES COMMUNICATION MARKETING COMPANY ENVIRONMENTAL/ SPORTS SOCIAL SUSTAINABILITY APPAREL EQUIPMENT FOOTWEAR Figure 2: JACK WOLFSKIN organisation chart 10 JACK WOLFSKIN supplier social report 2011 11 2.5 PRODUCT DIVISIONS FOR THE INDIVIDUAL TOPICS UNDER THE UM - JACK WOLFSKIN OFFERS ITS CUSTOMERS COMPREHENSIVE SUMMER AND WINTER COL - BRELLA TERM OF SUSTAINABILITY – “CORPORATE LECTIONS EVERY YEAR. THESE TWO COLLECTIONS COMPRISE ALL THREE PRODUCT DIVI - ENVIRONMENTAL PROTECTION”, “CORPORATE SO - SIONS: APPAREL, FOOTWEAR AND EQUIPMENT. PRODUCTS VARY SIGNIFICANTLY IN MANY CIAL RESPONSIBILITY” AND “PRODUCT-SPECIFIC AREAS AS THEY ARE DESIGNED SPECIFICALLY FOR SUMMER OR WINTER ACTIVITIES. ENVIRONMENTAL PROTECTION AND SOCIAL RE - WITHIN THE PRODUCT DIVISIONS, YOU WILL FIND THE PRODUCT LINES “ALPINISM”, SPONSIBILITY TOWARDS MANUFACTURERS” – “TREKKING”, “HIKING”, “ACTIVE TRAIL” AND “FAMILY”. AREAS OF RESPONSIBILITY HAVE BEEN ASSIGNED DI RECTLY TO THE MANAGEMENT AT JACK WOLFSKIN, THUS ENSURING THAT DECISION-MAKING CHAN - NELS ARE SHORT AND ALL FUNDAMENTAL DECI - SIONS ARE MADE, DEFINED AS GOALS AND AN- CHORED WITHIN THE OVERALL ORGANISATION BY THE MANAGEMENT.
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