Managing Risk in Our Supply Chain

Truck Fleet

In early 2015, we began to evolve our program to focus on areas that pose the highest potential risks to social, safety, and environmental compliance. We assess risk through a data-driven approach, and the factors we currently include: 

  • Country Governance
    Risk Using Worldwide Governance Indicators from the World Bank, we evaluate how factors like government effectiveness, rule of law, control of corruption and government stability affect the risk of non-compliance in facilities producing in that country. 

In the future, we may examine additional factors including:

  • Industry Risks
    By working with partners and other stakeholders, we can better understand specific risks within a given industry and design programs to target issues that are relevant to the industry.
  • Supplier Risk
    Through internal and third party assessments, we can gain an understanding of the level of maturity of our suppliers’ internal compliance management systems.

While we continue to manage supply chain risk through our own audits, programs, and training, we are also developing partnerships with other companies, governments and non-governmental organizations to address complex issues that no company can address alone. We believe this more collaborative approach will drive greater impact in our supply chain, and do so more effectively.