Sedex

Supplier Ethical Data Exchange

Driving a collaborative approach to supply

chain management
 What is Sedex?

• Sedex was established as a not for profit, membership organisation in

2004, it is dedicated to driving improvements in ethical and responsible
business practises in global supply chains.

• Built across four main pillars, it is a secure web based management system:

1. Labor standards 2. Health and safety 3. Environment 4. Business

integrity

• Sedex is the world’s largest collaborative platform for the management and
sharing of supply chain data.
 Sedex  Membership  Model  

Sedex  has  2  membership  types  that  reflect  the  different  types  of  businesses  in  
global  supply  chains  

Visibility

Purchase member Supply Member

Information

Who?  Retailers,  Consumer   Who?  Manufacturers,  Agents,  

Brands,  Government  &  NGOs   Importers,  Farms,  Growers,  
What?  View  supply  chain   Factories,  Service  Centres,  
informaFon  on  the  system   ProducFon  Sites    
What?  View  and  enter  supply  
chain  informaFon  

Copyright Sedex 2014

 Sedex  Data  Sharing  SchemaFc  

Ø Brand Manufacturer B
can share their data
Retailer  1   Brand  A   with 2 retailers
Ø Brand Manufacturer B
Supplier  1   can see data from
Suppliers 1, 2 and 3
Brand  B   Supplier  2  
Ø Supplier 3 can share
data with Brand
Manufacturer B and C
Retailer  2   Supplier  3   Ø Brand Manufacturer C
Tier  2   can access data for
Brand  C   Supplier  4  
Supplier   Tier 2 supplier

Copyright Sedex 2014

 Membership  Types  
A  Members   AB  Members   B    Members  
Visibility  and  traceability  of  supply  chain  
informa:on  
• Increase  supplier  engagement  and  
collaboraFon  
• Support  improvements  in  ethical  performance  
Risk  management  and  mi:ga:on  
• Carry  out  risk  assessments  
• Run  supply  chain  reports  to  analyse  issues  
• PrioriFse  resources  
• Reduce  reputaFonal  risk  
Generate  supplier  value  and  demonstrate  to  
stakeholders  your  commitment  to  responsible  
sourcing  
Share  company  informa:on  with  customers  
• Upload  audits,  cerFficates  &  correcFve  acFon  
plans  
• Complete  assessment  for  own  sites  
   Membership B
Supplier Sedex
 
Suppliers become Sedex B Members:
Ø complete  a  Self  Assessment  Ques:onnaire  (SAQ)  regarding  their  ethical  
standards    
Ø see  your  site  risk  ra:ngs  on  all  Pillars  in  detail  
Ø upload  and  store  audit  reports,  cer:ficates  and  correc:ve  ac:on  plans  
Ø request  an  ethical  audit  of  your  site    
Ø share  your  informa:on  with  mul:ple  customers  

Cost: (incl VAT/TVA) Annual  

Subscrip:on  
  £48.38  
         
$1200  
$80.53  (US)  

Copyright Sedex 2014

 Sedex  –  Global  Spread  of  Members  
 
 
 
 
 
 
Sedex team: Global presence:

§ Global – offices in London, § 37,000+ supplier organisations

Shanghai New York, Brussels & across 150+ countries
Santiago
§ 700+ purchasing organisations
§ International team, multi-lingual including FTSE 100/Fortune
support & resources 500 brands

§ Worldwide training support and § 70,000+ audits on Sedex

hotline/call centre facilities
§ Impacts 24 Million workers
globally

8
 AIM  PROGRESS  –  MISSION…  

Providing a collaborative mechanism to more effectively assure

and move beyond supply chain compliance

Mutual Recognition of both SAQs and audits helps to reduce audit

duplication, costs and fatigue (“an audit for one is an audit for all”)

Best practice guidance helping members to build their own

responsible sourcing programme & improve CSR standards
 Industry  specific  ini:a:ves…  

Providing a collaborative mechanism to more effectively assure and move beyond supply chain compliance

Mutual Recognition of both SAQs and audits helps to reduce audit duplication, costs and fatigue (“an audit for
one is an audit for all”)

Best practice guidance helping members to build their own responsible sourcing programme & improve CSR
standards
11
 The  benefits  of  mutual  recogniFon…  

Increase supplier support and leverage

Common Audit Methodology

Across Platform Reporting

Reduced cost for Supplier Interaction

Buyers  FAQ  
and  templates   Introductory  
webinars   Suppliers  
guidance  packs   Suppliers  
workbook  
 The  Sedex  Process  –    
delivers  your  objec:ves  

Identify risks SAQ Management Risk Management

Risk filter Engagement Data Analysis Risk Management Capacity Building

Iden:fica:on  of   Sedex  engages  with   Track  SAQ  progress  |   Bespoke  correc:ve  
ac:on  planning  &   Dedicated  training  
poten:ally  risky   suppliers    based  on   NC  analysis|  trend   support|  Guidance  
2c recommenda:ons  to  
suppliers  through   their  risk  ra:ng   analysis  |  Impact   and  educa:onal  
internal  risk  filter   assessment  |  SAQ  v   improve  risk  ra:ng  |  
resources  |  Raise  
Audit  etc.   Supplier  guidance  to  
awareness  |  
Dynamic SAQ rec:fy  issues  
Con:nuous  
Interac:ve  SAQ  with   Risk Assessment improvement  
Pre-Screening
Tool risk  specific    focus   Audit Management
sec:ons   Risk  ra:ng  |  risk   Support
Risk  iden:fica:on  
based  on  inherent   forecas:ng  |  risk  
Data Management scorecard  |  risk   Process  
risk  |  spend  |  brand   management|  
proximity  |  product   mapping  |  individual   Dedicated  Hotline|  
supplier  risk  report  |   Booking,  uploading   Mul:-­‐lingual  team  &  
etc.   &  correc:ve  ac:on  
Hosts  supplier   comparison  report  |   support|  SAQ  support  
benchmarking   submission  |  NC   |  Training  resources|  
documents  |    
analysis  |  issue   Supplier  Workbook*  
Sedex  &  Maplecro.   iden:fying  data  gaps  
cri:cality|  NC  closing  
tool   |  historical  audits/ Sedex  &  Maplecro.   |  repor:ng  
NCs  etc.   tool  
*Sedex  &  Verite  tool  

It  is  your  program  –  use  the  tools  as  you  need  –  totally  flexible  solu:on    
 Member

Sedex  Tools  

Supply  Chain  
Mapping   SAQ

ConFnual  
Improvement  
Supplier  
Engagement`    
 

SEDEX
RemediaFon/
CorrecFve   Assessment  
of  Risk    
AcFon  

Audi
t
Audit  
Management  
   
Risk

 
Sedex Supply Chain Management Process

1 Supply chain mapping   2 Supplier engagement 3 Risk assessments

 
   
• Initial risk screening to • Full supply chain risk
• Suppliers contacted to join
identify which suppliers to assessment based on
Sedex platform, upload sites
prioritise (e.g. high risk / country; product area; site
and grant access rights to
high spend)   profile and SAQ  
buyers  
• Create supplier ‘target list’ • Determine appropriate
• Suppliers complete a self-
actions based on risk level,
assessment questionnaire
e.g. schedule immediate
(SAQ) covering questions
  audits for high-risk
related to labour standards,
suppliers, action-plans for
health & safety, the
medium-risk suppliers, bi-
environment and business
annual audits for low-risk
ethics
suppliers, etc.    

6 Monitoring & reporting   5 Driving improvements   4 Auditing

   
   
Use dashboards and
• Based on audit findings, • External audits conducted at
comprehensive reporting
suppliers upload corrective supplier’s sites  
functionality to:  
actions and evidence to the • Audit findings discussed
• Access real time info on you
system with supplier  
supply chain performance  
• Auditors verify completed • Supplier empowered to make
• Use dashboards to quickly
actions to confirm issue(s) corrective actions and
identify critical issues that
have been addressed manage issues  
require action  
• Monitor and report on • Findings summarised and
progress uploaded onto system by
 
Copyright Sedex 2014 auditor    
 Self Assessment Questionnaire
Profile   Labour    Health  and  Safety   Environment   Business  Ethics  
Audit  History   Management  Systems   H&S  Management   Management  Systems   Management  Systems  

Seasonal  Variance   Employment  is  Freely  Chosen   H&S  Training   Waste   AnF  CorrupFon  

Worker  Types   Freedom  of  AssociaFon   Emergency  and  Fire   Raw  materials  
Safety  
CerFficaFon  and   Living  AccommodaFon   Machinery  &  Site   Water  
Best  PracFce   Vehicles  
Applicable  Laws   Children  and  Young  Workers   Hazardous  Materials   PolluFon  

Size  of  Site   Wages   Worker  Health   Emissions,  including  

GHG  
Supplier   Working  Hours   Housekeeping  &   Energy  &  Climate  
Management   Hygiene  

Non-­‐  DiscriminaFon   Renewable  Energy  

Regular  Employment   Biodiversity  

Discipline  and  Grievance   Suppliers  

Smallholders  

Homeworkers   Copyright Sedex 2014