Compliance Solutions for Retail Industry

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Compliance Solutions for Retail Industry

Mandatory vendor compliance programs are becoming  more common when seeking to work with larger retailers or industrial organizations. Most have identified their own codes of conduct and/or other detailed supplier compliance requirements that often require frequent third-party evaluations for successful ongoing partnerships.

Vendor compliance programs are created as an effort to improve supply chains and solutions. Retailers, associations and others are leveraging international standards and ensuring supply-chain transparency to key stakeholders.

Benefits of partnering With Pro QC for assistance with vendor compliance management include:

  • Avoids penalty and other chargeback fees by working with the supplier to ensure compliance.
  • Avoid damage to your reputation caused by working with non-compliant factories.
  • Allows for frequent, on-site evaluations and monitoring without the associated internal travel expenses.
  • Utilizes experienced and knowledgeable auditors and process improvement specialists that use their expertise to work with suppliers on detailed improvement plans and schedules.
  • The use of local resources reduces associated language and general coordination issues.
  • Improves supply chain performance.
  • Avoids delays in manufacturing and/or shipments.

Compliance Components

Compliance components vary depending on the organization. Many employ a combination of general quality management system (QMS) components, social responsibility and security. For example:

  • Financial integrity
  • Verification of insurance, as applicable
  • Wages & benefits
  • Child & voluntary labor & hours
  • Safety & health
  • Fire safety & prevention
  • Bribery & ethics
  • Environmental stewardship & sustainability
  • Global security criteria
  • Compliance w/ laws & regulations
  • Training
  • Quality assurance & control
  • Documentation

Vendor Code of Conduct Requirement Standards

  • SA8000 Social Accountability
  • ISO 26000 Social & Sustainability
  • C-TPAT – U.S. Customs Trade Partnership Against Terrorism – Security
  • Canada Customs Partners in Protection (PIP)
  • ISO 9001 General Quality Management System
  • ISO 14001 Environment & Sustainability

Compliance Evaluations

Vendor (supplier) compliance evaluations and monitoring generally include the following:

  • Documentation review, including licenses, permits and records relating to labor, employment, etc.
  • A visual inspection of the premises
  • Confidential worker interviews

Pro QC has assisted in preparation for vendor certification programs such as:

  • Walmart Responsible Sourcing
    • Responsible Sourcing (RS)
    • Supply Chain Security (SCS)
    • Factory Capability & Capacity (FCCA)
  • Lowe’s SA Audit
    • Social Responsibility
    • Documentation & Inspection
  • PACCAR Supplier Requirements
    • ISO/TS 16949 or QS 9000 Compliance
    • Product Parts Approval Process
  • BJ’s Wholesale Club Social Standards
    • Social Responsibility
    • Documentation & Inspection
    • Target Vendor Code of Conduct
    • Product Safety & Quality Assurance
    • Social Compliance Audit
    • Supply-Chain Sustainability
    • C-TPAT Compliance
  • Canadian Tire Supplier Code of Business Conduct (SCBC)
    • Corporate Social Responsibility
    • Training & Education
  • AutoZone Vendor Code of Conduct
    • Training
    • Assessments & Corrective Actions

CONTACT YOUR LOCAL OFFICE

Example audit performed for a supplier preparing for a Walmart certification (click on image to download).

ProQC_ExampleReport_WalMart_Audit_Report

When you partner with Pro QC for vendor compliance and management solutions, the process generally includes:

  • Review of any previous audit results or other communications related to the existing supplier.
  • Scheduling of an initial evaluation on-site using the applicable guidelines.
  • Development of a detailed Improvement Plan that addresses any non-conformances, identifies corrective actions and assigns responsibilities and deadlines.
  • Return visits to the supplier evaluate the progress of the action items identifeied in the Improvement Plan.
  • Clients receive ongoing updates via an online database that allows for access 24/7.

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