Are you ready for the Modern Slavery Act?
With the end of this financial year fast approaching, have you got the relevant processes in place to ensure that your business complies with the Modern Slavery Act 2015?
The new legislation, which came into effect last autumn, initially applies to companies operating in the UK with a turnover of at least £36 million. As of 1 April 2016, around 12,000 companies will be required to produce a statement highlighting the steps taken throughout the year to identify and prevent modern day slavery and human trafficking in every part of their organisation.
The Global Slavery Index 2014, issued by the Walk Free Foundation, estimated the number of modern slavery victims to be 35.8 million each year. Additional research has recently suggested that two thirds of UK companies believe modern slavery could occur within their supply networks*, so it is crucial that action is taken.
Retailers clearly need greater awareness of their supply chains in order to identify exactly where each component for their products is sourced from and what the working conditions are like in those factories. But with highly complex, multi-tiered supply networks, and operations taking place across many countries, it can seem almost impossible to gain the clarity to detect issues, much less to act on them.
Companies often rely on a combination of audits, codes of conduct, contractual terms and, ultimately, honesty, when asking about the practices within their supply chains. Although these processes are useful, their effectiveness can be problematic as they do not provide any real-time visibility of the actual activity taking place.
To achieve this much-needed transparency, more and more retailers and brand owners are now turning to the latest technology and software solutions. Segura is one such company that has a proven and innovative answer for this issue.
Segura’s cloud-based supply chain visibility software enables customers to improve quality, compliance and oversight within supply chains. The system’s flexible structure and phased approach allows businesses to use the software to whatever level of detail they require.
Once the complete authorised supply chain has been mapped, Segura can provide vendor specific geographical, political and financial risk alerts and reporting. This can then be taken into further detail by confirming exactly what component or product each supplier provides.
The software can also be extended to trace exactly what is ordered and when, as well as providing notifications and reporting on when orders are fulfilled and shipped. Each order submitted through the solution must be placed within the nominated supply chain, which ensures full accountability across the network.
With this unrivalled system in place, Segura can safeguard a business and its customers against unethical, non-compliant and uncompetitive secondary and tertiary suppliers. Furthermore, this level of oversight can help to increase efficiency, and deliver better financial performance at the same time as reducing risk.
Being linked to any form of immoral practice can be detrimental for a brand’s reputation. With no other company offering this level of insight, Segura can provide the solution required by retailers and brand owners to be fully compliant with the Modern Slavery Act.
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