German discount retailer KiK is to use Setlog's OSCA cloud-based vendor compliance management (VCM) solution to help bring more transparency to its supply chain.

The software optimises supplier management by streamlining and improving the auditing process, providing direct access to all audit reports, with all information available in real time.

It is also helping KiK to create a vendor scorecard and will provide early warning and monitoring of corrective actions.

Pressure on apparel brands and retailers to monitor supplier compliance has increased significantly in recent years, and KiK, which is one of Germany's top-ten clothing firms, was named as a buyer at two factories in Pakistan – Tazreen Fashions and Ali Enterprises – where workers were killed in factory fires.

The OSCA software offers an innovative ranking module for single suppliers so they can be established, weighted and compared over a certain period of time. This helps to define different criteria for a scoring model, which facilitates the evaluation of a supplier for the client company.

Additionally the software implies an early warning system, which displays all due audits and lists automatically all timed corrective actions.

"OSCA's functions will help us to realise different aspects like the vendor scorecard and audits, as well as corrective actions, faster and more effectively notes Ansgar Lohmann, head of corporate social responsibility at KiK. "With the new software we are able to further streamline and improve transparency and control in the supply chain."

"We are happy to be able to support KiK with its efforts dedicated to a more sustainable and responsible supply chain," adds Setlog-CEO Ralf Duester.

KiK, whose name means 'Customer is King', offers apparel for women, men, children and babies. It operates 3,200 stores in Germany, Austria, Czech Republic, Slovenia, Hungary, Slovakia, Croatia, Poland and the Netherlands, and has a net turnover of EUR1.68bn (US$1.8bn).

Setlog's OSCA hub connects retailers and brands in real-time with their global suppliers, agents, factories, buying offices, quality, testing, logistics, distribution and other global business partners. This platform helps improve planning, transparency, execution, compliance and control through early alerts, data analysis and information management tools. 

Last year just-style spoke with Setlog managing director Guido Brackelsberg, who explained that the transfer of knowledge down the supply chain in order to improve compliance is likely to be one of the biggest shifts faced by the apparel industry over the next five years.

Setlog portal "monitors down to the mill"