What is Supply Chain and Production?
Supply Chain Management is the process, which links, coordinates and controls the movement of goods, materials and information from a supplier to a customer to the final consumer. Without supply chain it would limit our option and consumer choice
The essential point of a supply chain is that it integrates all the activities together- buying/sourcing, making, moving, selling- between suppliers and customers to the consumer in a timely matter.
A supply chain is a network of partners who collectively transform a basic commodity into a finished product that is valued by end- customers who manage returns at each stage.
There are two types of supply chains: Upstream and Downstream
Upstream:
1. Raw Materials
2. Supplier
3. Manufacturing
Downstream:
1. Consumer
2. Customer
3. Distribution
Production may seem the least glamorous but it is by far the most important.
Production describes the process by which concepts are made into a saleable product. In most cases this means going from a small set of samples to commercial quantities of the item or style, often across many different sizes, colours and patterns.
How are retailers ensuring they are using an ethical supply chain?
Every retailer in the world should ensure they are using an ethical supply chain. The simple way of doing this efficiently and effectively is by being aware and following the ETI (Ethical Trading Initiative) base code.
What is an ETI base code?
The Ethical Trading Initiative (ETI) is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe.
What are the 9 key points of the ETI base code?
1. Employment is freely chosen
2. Freedom of association and the right to collective bargaining are respected
3. Working conditions are safe and hygienic
4. Child labour shall not be used
5. Living wages are paid
6. Working hours are not excessive
7. No discrimination is practiced
8. Regular employment is provided
9. No harsh or inhumane treatment is allowed
Ethical Nature of Sourcing Production