Audits & Assessments

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The Point of Audits and Assessments

Tracking supplier audits across the enterprise can be difficult. Documents arrive from multiple sources. Each production facility may have different processes. Tracking status relies on working with both internal and external people. Creating custom built portals requires ongoing maintenance from overworked facility.

IMI provides a complete supplier audit and certification management system out of the box. Be ready for any audit, any day, at any time. Suppliers provide status updates to their audits, which you can track using the built-in workflow. IMI provides a single location to view and track audits and certifications for both your factories and your suppliers. Within seconds, show auditors that you have control over supplier and internal audit activities to maintain compliance across all industry standards. Finally, IMI provides a means to analyze audit results. Based on working with a number of Fortune 250 companies.

AUDITING & ASSESSMENTS

Consumers and pressure groups are increasingly concerned about the social conditions in which workers from developed and developing countries are subject to Forced Labour, Child Labour, Low Wage, Poor Conditions and Dangerous Working Environments.

The issue of social accountability in manufacturing is a sensitive one. Instead of a short-term view, we can encourage adoption of a long term programme of social improvement within the factory.

Audits and assessments are conducted to evaluate the risks at a production facility, and to determine if goods have been manufactured under fair labor conditions. These audit findings provide you with the information you need to make important sourcing decisions, and help to identify and address non-compliance issues such as hours of work, wages, fair and equal treatment, and health, safety and environmental concerns. We have the advantage of a close understanding of local economies as well as social and religious issues. This allows we can work with both the manufacturer and the retailer to obtain the best all-round solution. We are able to highlight areas of improvement and promote programs to improve social conditions over a planned and structured timescale.

We conduct these services globally, focusing on Apparel and Footwear, Jewelry and Accessories, Food and Beverage, Consumer Products, Toys and Electronics. We also have experience with a range of initiatives, including the FLA, FJATA, ICTI, SA8000, WRAP, SMETA, Responsible Business Alliance (formerly EICC), and others. To audit, assess, and improve workplace conditions, IMI provides the following services:

Social & Ethical Audits

Social audits help to measure and report on a manufacturer’s social compliance and ethical performance, initiating the compliance dialogue between brands, retailers, and their supply chain partners.

IMI’s local compliance specialists conduct social audits across a wide range of industries throughout the Bangladesh, Myanmar, Cambodia, Vietnam, India and Pakistan. Using a multi-tiered auditing approach, our compliance specialists employ current and effective auditing methods and techniques to corroborate evidence, applying the cultural sensitivity required for successful social audits. Further, they have the discipline to consider their own inherent cultural biases, biases that might otherwise cause them to unwittingly overlook basic factory conditions.

At IMI we take a deeper approach to auditing that goes beyond a scorecard or checklist model. To create true transparency, we work through the entire audit process with the supplier, taking the time to explain issues of concern, providing possible solutions and answering any questions as they arise. Audits are conducted against the compliance standards set forth by our clients or recommended by IMI, and include opening and closing meetings with management, observation and physical inspection of the facility, comprehensive document and record review and confidential worker interviews. We adhere to International Labor Organization (ILO) standards, United Nations conventions, and regional laws and regulations, and take into consideration all known regional challenges and supplier histories. SA 8000 Audit, WRAP Certification Audit, BSCI Audit, SEDEX, Ethical Trading Initiative (ETI) Audit and ETI Base Code Consists of Nine Principles.

Pre-Audits

Pre-audits provide a quick snapshot of the working conditions of a supplier, and are particularly useful when a client elects to go factory-direct instead of sourcing through an agent.

Used to evaluate the compliance potential of a supplier, pre-audits are conducted prior to establishing a new supplier relationship, and focus on core issues such as hiring policies and healthy and safe working conditions. Pre-audits culminate in a corrective action plan (CAP) recommending areas for improvement which, if requested, can be provided to the supplier regardless of whether or not a client decides to place any orders with them.

Remediation Verification Audits

Remediation Verification Audits seek to ensure that all initial audit findings have been successfully addressed.

When issues of non-compliance are discovered, the Insite compliance specialist will report on the context of the finding (e.g., the severity, frequency, or location of the reported events), and provide recommended remediation steps. In some instances, suppliers may be able to satisfy the requirements of their remediation plans by submitting photographs or documentation; often, a follow-up onsite verification audit will be required.

Issue-Specific Audits

Issue-Specific Audits target particular concerns, allowing for a more comprehensive investigation and giving our clients a clearer understanding of the steps needed to remediate a given issue.

Our recommendation to conduct an issue-specific audit is often based on known regional trends (e.g., reliance on migrant workers, a history of ethnic discrimination). It may also be based on a pattern of non-compliance findings for a given vendor/supplier, or an initial audit that calls for closer scrutiny. Issue-specific audits can be used to identify the root cause of uncovered discrimination, to address evidence of forced labor, or to address ineffective health and safety procedures.

Fire Safety Assessments

Fire Safety Assessments focus specifically on fire precautions, a crucial aspect of overall factory safety across the globe.

Because fires can happen at any time, unannounced visits are especially important when it comes to assessing potential hazards. Our fire safety assessments provide a comprehensive review of a facility’s fire and electrical safety, and diagnose where immediate or ongoing corrective actions need to occur. These visits consist of a thorough evaluation of the factory, warehouses, storage canteens and dormitories, and focus on fire safety equipment and practices, building maintenance, fire equipment and electrical equipment upkeep. During the assessment any immediate concerns are explained, and corrective actions are provided to factory management.

Our compliance specialists also examine the company’s policies, procedures, and management systems surrounding fire safety, and conduct a detailed review of all associated documentation, including review of certificates and procedures that demonstrate compliance with country and international fire safety regulations. At the assessment’s conclusion we present our findings, along with specific recommendations for developing risk-based fire safety policies and procedures.

Management Systems Assessments

Management Systems Assessments get to the root cause of non-compliance issues rather than simply identifying the symptoms.

Management system deficiencies can be a key cause of non-compliance, and may lead to systemic and potentially critical issues. All of our compliance specialists are trained to evaluate the comprehensiveness and suitability of a factory’s management systems, which includes identifying if a required system is in place and if the supporting policies, procedures, and methods are effective.

Management systems assessments promote transparency and have the potential to result in sustainable change. At the conclusion of each assessment, Insite formulates a recommended strategy for narrowing any system gaps discovered during the factory visit, with an emphasis on cooperation between Insite and factory management, a first step toward encouraging supplier ownership of the compliance process.

Security Assessments

Supply chain security is a growing concern among brands, retailers and their supply chain partners. Establishing and maintaining an effective supply chain security program can help reduce risk.

C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve both the overall security of the international supply chain and the United States border. Insite provides onsite security assessments and counsels businesses on the development of effective supply chain security programs to meet the criteria of C‐TPAT, the U.S. Customs-Trade Partnership Against Terrorism.

Factory Improvement

It is now widely recognised that retailers need to progress beyond traditional audits towards a collaborative approach with their suppliers and manufacturing sites to develop better working conditions and more sustainable workplaces.

In collaboration with clients and their suppliers, our regional teams design and run a wide variety of improvement programmes to create better workplaces, safer factories and fairer working conditions. We work closely with factory management to gain their trust and support so that lasting improvements can take place.

Programmes include:

Improving workplace communications and worker participation;

Creating a stable and motivated workforce;

Strengthening factory management systems;

Making workers more aware of their entitlements and rights;

Saving costs through improved working conditions;

Reducing or eliminating hazardous chemicals;

Fire and electrical safety.

Chemicals Management

There are widespread examples in many supply chains of people being exposed to potentially harmful chemicals in the workplace. Lack of awareness, inadequate equipment, out-of-date technologies and a lack of focus on this important safety risk all contribute. Further serious health and environmental impacts come from inadequate controls on chemical discharges from factories.

Some chemicals on the radar include phthalates in PVC, azo dyes and APEOs in textiles, chrome 6 in leather, and VOCs in adhesives, to name a few.

Global chemicals legislation is also evolving, with many companies struggling to understand their legal obligations in the countries where their products are manufactured and sold, leaving them open to the risk of litigation and product recalls. Industry stakeholders have collaborated to create restricted substances standards in response to these pressures, and many brands are working to more effectively manage, eliminate, and restrict the use of harmful chemicals in their supply chains.

The Reassurance Network can offer a basic factory chemical monitoring programme to raise awareness and reduce or remove the most hazardous chemical-related risks:

advise factories on safe working practices relating to chemical handling

carry out a basic review of chemicals used against restricted substances lists

explore opportunities to restrict or eliminate hazardous chemicals from manufacturing processes. We can also provide a restricted substances programme, covering chemical mapping, monitoring, testing and management, which is managed according to risk, such as country of manufacture, component materials or manufacturing processes.

Training Capacity Building

It is our goal to help our clients develop knowledgeable and effective internal teams to manage ethical trade and sustainable sourcing.

We have delivered workshops and training events in the garment and agricultural sectors on labour practices, buying practices, supply chain monitoring, remediation of issues and animal welfare.

Our training is built around practical examples to develop a detailed understanding of key topics. These trainings are often based around site visits. Using our SUPPLYTRAIN tool we can work with clients to produce virtual 3D training environments, such as a replica factory or farm, which suppliers or commercial teams can interact with to understand more about risks, best practices and improvement opportunities. Find out more about our virtual training platforms here.

Training Capacity Building

It is our goal to help our clients develop knowledgeable and effective internal teams to manage ethical trade and sustainable sourcing.

We have delivered workshops and training events in the garment and agricultural sectors on labour practices, buying practices, supply chain monitoring, remediation of issues and animal welfare.

Our training is built around practical examples to develop a detailed understanding of key topics. These trainings are often based around site visits. Using our SUPPLYTRAIN tool we can work with clients to produce virtual 3D training environments, such as a replica factory or farm, which suppliers or commercial teams can interact with to understand more about risks, best practices and improvement opportunities. Find out more about our virtual training platforms here.

Strategy Development

We provide strategic advice to clients who are developing or strengthening ethical trading and sustainable sourcing programmes. This can include:

trategic objective setting;

xecutive team strategy development;

olicy and procedures;

rogramme development and management;

evelopment of teams and resources;

uying practices review.

We have advised clients such as FatFace, JTI, Primark and River Island on strategy development. Malcolm Guy has personally represented several clients at forums such as the Bangladesh Accord on Fire and Building Safety, International Labour Organisation, United Nations Guiding Principles on Business and Human Rights and UK Parliamentary Policy Reviews.

Monitoring & Evaluation

Monitoring and evaluation (M&E) are the cornerstones of any successful corporate responsibility or social development intervention. They help organisations answer the question: are our social programmes and projects making a difference? An effective M&E system enables regular tracking of project and programme progress; provides opportunities throughout implementation for reflection, learning and strategic adjustments; and enables end-of-term measurement of objectives. It allows for learning from challenges as well as up-scaling of best practices. Moreover, good M&E ensures accountability towards project beneficiaries, project sponsors, as well as the public. To be successful, M&E systems need to be uncomplicated, participatory, transparent, measure the right information and provide opportunities for continuous learning and improvement. We can help clients to develop practical M&E systems and provide on-going implementation support to ensure they become embedded within day-to-day operations. Our M&E services include:

omprehensive M&E systems development at project, programme or organisational-level;

acilitation of participatory progress and learning reviews throughout implementation;

articipatory or independent mid-term or end-of-term project or programme evaluations.

We have developed M&E systems for leading international NGOs, including Oxfam GB, and have provided technical M&E support to UN agencies such as ILO and UNICEF across Africa. We have also carried out formal corporate responsibility strategy and programme evaluations for British Airways, Camelot, National Australia Bank and Next.

2nd Party Audits

Customized Audit Solutions

Validate the Strength of Your Supply Chain

Overview

In recent years, competitive pressures, globalization and increasingly discerning consumers have forced retail corporations to increase the number of suppliers they work with. Thus, large national and international supply chains have become a central part of an organization’s operational strategy because of key advantages of labor, quality, and logistics. However, it is recognized that with these advantages come risks. These risks are associated with social, environmental, health & safety and product quality/safety factors. Being proactive in improving supply chain performance requires evaluation of processes and procedures, measuring the results in order to better react to risk, monitor market signals and facilitate continuous improvement.

What is a 2nd party audit?

A second-party audit occurs when an organization audits their suppliers, or their own facilities, to their own proprietary requirements and codes of practices. The audit process helps the organization to avoid the risk of product recall, service failure, or compliance issues by finding and correcting problems before they affect the customer or end user.

IMI can enable you to roll out and monitor the performance criteria defined in your business strategy. Audits can be performed either to suppliers or to organizational network.

Supplier Assessments

Auditing your suppliers’ processes against your own quality, safety, or security requirements will ensure the reliability of your product and the strength of your supply chain. By outsourcing these audits to IMI, you can proactively monitor supplier performance and ensure that:

Our supply is maintained to your specific requirements and standards;

Our Protect your brand and reputation;

Our reduce monitoring cost;

Our organizations value and strategy are thoroughly understood and implemented;

isks associated with your supply chain are cost-effectively managed;

Assessments against Code of Practice

Monitoring the adherence of your network to the values, policies and procedures you have defined in your Code of Practice will ensure that:

Customer loyalty is enhanced

You can provide instant and verifiable information to shareholders and stakeholders

Performance is improved

Your Brand equity is preserved

Practices are consistent throughout your organization’s networks

Your organization’s networks achieve the level of efficiency and performance you require

Our customized audit solutions ensure you that your organization and your suppliers are abiding to the standards and code of practices you have set for them. Moreover, we can help you set up the assessment scheme, if you haven’t any, which is necessary to monitor the performance of your suppliers or your network. Our auditors and experts have the skills and knowledge that are specific to your industry and business and the integrity and professionalism to help your organization achieve your goals and objectives efficiently and effectively. Outsourcing these services to IMI you will gain a consistent, professional and unbiased approach in a very cost-effective manner, as you will save money from developing internally equivalent resources.