What is a Supply Chain?

CREA 2011

The process by which a product is assembled from component parts and brought to market

The process by which a an agricultural product is brought from where it is grown to the market

Each process can have many steps

Definition of a Supply Chain

Supply chains for each commodity are different, are unique to the product

All supply chains have some things in common

Raw materials How materials are processed How the processed materials become

components of the final product All the processed materials needed for a

final product

Complete view of a supply chain:

ClothThreadButtonsZippers

For a Shirt

CutterSewerPackager

TransporterDistributorSeller

WiresCaseMotherboardChipsEtc.

For a computer

MineralsMetalsPlasticEtc.

MinersSmeltersAssemblersEtc.

It is not enough to have the raw materials

Or even the processed materials

People are key to any supply chain;Without men and women working, supply chain s do not function

The point is

Supply chain focus: Bringing product to market

Value chain focus: Where can profit be made

Supply Chain vs. Value Chain

Vendors or agencies

Contractors

Sub-contractors

Suppliers

Tiers

Supply Chain General Language

= Standards set for the Workplace

Based on Country LawInternational Standards including the Core

ILO ConventionsCompany’s Code

RULE: For each issue, whichever is the highest

standard applies

Codes of Conduct

Many countries do not have laws addressing workplace safety and worker’s rights

Even if they do have laws on the books, enforcement system can be weak or non-existent

Country Laws

C-29 Labour Convention, 1930 C-87 Freedom of Association and Protection of the Right to Organize Convention, 1949 C-98 Right to Organize and Collective Bargaining Convention, 1949 C-100 Equal Remuneration Convention, 1951 C-105 Abolition of Forced Labor Convention, 1957 *C-111 Discrimination (Employment and Occupation) Convention, 1958 C-138 Minimum Age Convention, 1973 C-182 Worst Forms of Child Labor Convention, 1999 * NOTE: US has only ratified C-105 and C182

Core ILO Conventions

Basic Topic Requirements- Compliance with All relevant laws- Working hours- Compensation- Child and Juvenile Labor- Forced Labor- Harassment and Abuse- Contract Labor- Freedom of Association and Right to Engage in

Collective Bargaining - Environmental Management- Anti-discrimination statement

Company Codes

Between Codes or Standards for Direct Employees

Codes for Workplaces in Supply Chains

It is not either/or…….the magic word is AND

BOTH are necessary

Difference

The Code is succinctly stated with an application manual provided which expands on the code

The Code and application manual are provided in one document

Both are fine as long as the necessary components are in the materials

2 Basic Formats

Gap – Code of Vendor Conducthttp://www2.gapinc.com/GapIncSubSites/csr/EmbracingOurResponsibility/Governance/Gov_COVC.shtml

Target Code of Vendor Engagementhttp://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-034203

Walt Disney Company

Try searching on the internet for the code of companies in which you are interested. Codes should be easy to find.

Code Examples to Read

http://corporate.disney.go.com/citizenship/codeofconduct.html