Introduction
Vendor compliance ensures Advantus meets expectations outlined in customer-vendor manuals. Effectively managing vendors is important for many reasons, such as reducing spending and ensuring that all processes go smoothly between the order and the payment.
Advantus Supply Chain Social Responsibility Code of Conduct
Advantus operates in an ethical and sustainable way and deals with its environmental and social impacts. Advantus gives careful consideration of human rights, the community, environment, and society in which it operates. The Advantus Code of Conduct is designed to minimize the risk that could affect production or brand image, enhance factory management systems, and improve worker quality of life.
Labor and Human Rights
Respect for human rights is a fundamental principle throughout our business practices and standards. We condemn forced labor and will not use forced labor in the manufacture of our products. We respect cultural differences and believe workers should be employed based on their abilities, rather than their race, gender, personal characteristics, or beliefs. We do not require a workweek that exceeds local laws or business customs and does not require a workweek of more than 48 hours, plus a maximum of 12 hours overtime, on a regularly scheduled basis. Workers shall have at least one in seven days off.
Health and Safety
We provide a safe and healthy workplace for our employees and comply with local laws. Residential facilities for our workers are safe, healthy, and in compliance with local standards.
Environment/Sustainability
We operate in compliance with local environmental laws and work to minimize our impact on our surroundings and global resources. Sustainability is a term that has grown in popularity and has become a catchphrase for green business practices that have been incorporated into many business strategies, in particular of our biggest customers like Walmart. The definition of sustainability is:
“The quality of not being harmful to the environment or depleting natural resources, and thereby supporting long-term ecological balance.”
The EPA defines sustainability as:
“Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic, and other requirements of present and future generations. Sustainability is important to make sure that we have and will continue to have, the water, materials, and resources to protect human health and our environment.”
Customer Programs
Customers care about sustainability and want to partner with businesses that incorporate social responsibility into their business strategy. As consumers become more educated, they look for businesses that share their values.
Management Systems
Strong relationships with our vendors is critical to the success of Advantus. Developing these relationships takes time and effort. It requires clear and consistent communication, as well as strict adherence to Advantus vendor standards. Refer to resources and tasks in Product and Sourcing at the following link: Vendor Management
New Vendor Onboarding
Once a potential vendor has been identified, analyzed, and determined to meet Advantus standards, the new vendor setup process is completed by Product and Sourcing specialists.
On site Vendor Audits
- A vendor audit is used by organizations to evaluate a third-party hired by the organization. An audit can look at a number of different issues, such as the organization’s quality control, the operational environment, security/cybersecurity protection, or other aspects. Each customer requires factories to have various audits conducted to ensure safety and compliance with government laws and regulations, and each one has different audit requirements. There are four main types of vendor audits: Factory Assessments, Security Audits, Responsible Sourcing/Social Accountability, and Sustainability Assessments.
- Initial Vendor Audit Questionnaires are effective at collecting basic factual data about an organization. The Vendor Compliance Manual is a manual created for Advantus vendors to understand the requirements of doing business with Advantus. The Vendor Compliance Manual also details the Chargeback Schedule. The following documents are collected and reviewed upon initial vendor set up:
- Vendor Acceptance of Terms & Conditions
- CTPAT Questionnaire (Security Assessment)
- Human Rights & Compliance Questionnaire (Social Accountability Assessment)
Monitoring Vendor Performance
Vendors are an integral factor in the success of Advantus. They can work like a well-oiled machine, where confidence levels are high, and the quality and delivery of products and services exceed expectations. Or they can become a burden to bear, swallow up resources and cost business high dollars in administration and performance management.