Sustainable Supply Chain Practices
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Continuous Improvement Program for Footwear
 
Background

The production process of footwear, whether the type of footwear is upscale or low end, is a highly labor intensive process that requires low skilled human labor. Despite technological advances in the production process, the nature of leather makes automation difficult in some stages of footwear production. The significant international competition within the industry creates an environment for poor labor conditions in the developing countries where most of the production takes place.

In response to the dire labor conditions in the footwear industry, voluntary codes of conduct, implemented by major retailers and design and marketing firms, are one of the most significant results of emerging global standards in the footwear industry. Codes of conduct have become increasingly common among footwear manufacturers and retailers.

Despite improvements on some aspects, the general effectiveness of these voluntary codes of conduct in significantly improving conditions among foreign manufacturers seems to be very limited. Poor labor conditions and child labor continue to exist, albeit in less detectable means, despite the decade-long existence of the codes of conduct. Monitoring methods for detection of infractions and enforcement of company policies include pre-screening inspections, contractual monitoring (self certification by foreign manufacturers), internal monitoring (in country site visits and inspections by company representatives), external monitoring (site visits and inspection from third parties such as NGOs or auditing firms), as well as unannounced visits

It is widely recognized that sustained adherence to workplace codes of conduct such as that of the FDRA require more than audits and corrective action plans. Training, education and capacity building are among the complementary efforts that will help multi-stakeholder initiatives, brands, retailers and suppliers reach sustained levels of workplace improvements.

It is for this reason that CTI has provide capacity building services in China with two main objectives: 1) to develop and deliver a diverse and in-depth set of trainings to factory management that will promote good labor practices in China-based export facilities; and 2) to create a sustainable training institute in mainland China that can effectively meet factories' need for technical training on good labor practices.

 
Goal

The Continuous Improvement for FDRA Suppliers is designed to meet the ethical sourcing requirements commonly identified in the footwear industry. Spanning over nine months, this cost-effective approach incorporates comprehensive curriculums on a variety of key topics essential to manage workplace conditions in the supply chain. This training approach links CTI's current sessions and includes pre and post assessments that will allow suppliers to measure impact.

 
Benefits
For FDRA
  • Provide support and feedback to footwear factories participating in the FDRA.
  • In partnership with CTI, develop more detailed training efforts on how footwear factories can better meet the ethical sourcing challenges commonly identified in the footwear industry.
  • Enable FDRA to build internal capabilities and forge supplier relationships that focus on continuous improvement and long term sustainable solutions for those factories unable to meet all of the FDRA requirements.
For Suppliers
  • Increased skills and competencies for the management of health & safety, labor, ethical, environmental issues and effective grievance procedures.
  • Focus is placed on simultaneously building management skills, educating suppliers and demonstrating the business benefits of changes and actions directly related to meeting ethical sourcing requirements of the FDRA as well as multinational corporations.
  • Having a local network of suppliers come together to discuss these challenges and provide support and assistance with solutions has proven to be highly useful in helping to sustain change.
  • Allows participants to become recognized as contributing to the advancement of CSR in China and to develop the ability to measure and monitor performance.
 
 
Project Partners
FDRA
FDRA
FDRA is a vertically integrated association of firms engaged in footwear distribution including:
  • Retailers (national and regional chain shoe stores and footwear departments).
  • Import buying agents and brand licensees.
  • Wholesale footwear companies with U.S. and global brands.
  • Affiliate Members ranging from leather suppliers to transportation firms.
The Association represents retail firms, distributors, and affiliates -- accounting for approximately 75% of U.S. shoe sales.
 
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