Vendor Compliance

 

Vendor Compliance

Selling to big retailers

When your company decides to sell products to big retail stores, there’s is an exhaustive application process and criteria that must be fulfilled before your products land on the retailer’s shelves.

One of the most important criteria is to ensure the supply chain of your products comply to that specific retailer’s own compliance. The standards can be called Standard Of Supplier, Vendor Code of Conduct, Responsible Sourcing and many other names. We will call it the vendor compliance program. If your product supplier or the sub-suppliers in your supply chain fail to comply with the retailer’s vendor compliance program, you run the risk of your suppliers being penalized. The normally means a refusal to sell to this retailer for between 6 months and 2 years. In some cases, if your suppliers fail to sustain the needed performance or receive multiple violations, it will result in a permanent ban. The figure below details some of the points in your supply chain in which violations can occur.

vendor compliance

vendor compliance 

These vendor compliance or vendor code of conduct requirements are often a mix of Quality Management System (QMS) and/or Social, Environmental and Security Compliance as described under our System & Compliance Audit service page. Here are a few examples:

  • Financial integrity
  • Verification of insurance, as applicable
  • Wages & benefits
  • Child & voluntary labor & hours
  • Safety & health
  • Fire safety & prevention
  • Bribery & ethics
  • Environmental stewardship & sustainability
  • Global security criteria
  • Compliance w/ laws & regulations
  • Training
  • Quality assurance & control

Pro QC’s Vendor Compliance Solution

We understand that simply sourcing from foreign suppliers is difficult. To ensure these suppliers adhere to extensive compliance measures adds even more workload to your team and are often out of your control.

Pro QC’s Vendor Compliance program helps you regularly manage the compliance level of your supplier portfolio and ensure each supplier and sub-supplier to all compliance requirements as requested by the retailer in a cost-effective manner. In the figure below, we focus on Walmart and what it takes to ensure compliance.

vendor compliance solutions

Our clients often request support ahead of the formal certification or compliance audit by the retailer. The support provided will ensure that your company’s suppliers comply to all necessary requirements and can pass the formal certification or compliance audit. Our team can:

  • Perform an audit to assess the supplier’s compliance level
  • Advise a corrective action plan according to the result of the audit
  • Provide Walmart supplier training as required
  • Monitor the progress of the corrective action plan implementation

It is important to understand that an accredited certifying company can only offer a pass/fail result due to conflict of interest as stated in almost all retailers’ vendor compliance standards. Therefore, it is important for you to look for non-conflicting quality assurance partner like Pro QC when managing your supply chain compliance and any resulting corrective action plan or implementation.

The top Vendor Compliances that we assist our clients with

  • Walmart Responsible Sourcing Program
  • Walmart Supply Chain Security
  • Walmart Factory Capacity & Capacity Audit (FCCA)

  • Retail Ethical Sourcing Audit (RESA)

  • Quality System Audit (QSA)
  • Supplier Compliance Audit Network
  • Retail Ethical Sourcing Audit (RESA)

  • Factory Capability Audit (Costco GMP)
  • Supplier Code of Conduct

  • Social Responsibility Audit

  • Vendor Code of Conduct
  • Vendor Factory Evaluation Audit

  • EICC Responsible Business Alliance

  • Amazon – Supplier Code of Conduct
  • Amazon – Management Systems
  • Auchan – Code of Conduct
  • Canadian Tire Corportation – Amfori Business Social Compliance Initiative
  • Canadian Tire Corportation – Supplier Compliance Audit Network
  • Carrefour – Code of Conduct
  • Decathlon – Code of Conduct
  • Dick’s Sporting Goods – Responsible Sourcing Program
  • H&M – Code of Conduct
  • Macy’s – Code of Conduct
  • Nike – Code of Conduct
  • JCPenny – Code of Conduct
  • Starbucks – Code of Conduct
  • Zara – Code of Conduct

Results you can expect

Better understanding

Tailored Solution

Upgrade supplier rating

Supplier Rating Increase

Cost effective QA

Cost Reduction

One Stop Shop

One Stop Shop

Passing audit

Successful Audits

 

Tailored Solution – Pro QC help you choose the right Vendor Compliance program for your product category, supplier origin and ensure a full understanding of the compliance requirement
 

Supplier Rating Increase – Continually improve your supplier’s compliance level, upgrade your supplier score card with the retailers and ensure they pass the audit
 

Cost Reduction – Reduce your QA overhead and travel time by utilizing our network for more cost-effective management of your global suppliers
 

One Stop Shop – Let Pro QC be your single point of contact for achieving compliance and help you reduce the workload on your procurement and QA team
 

Successful Audits – Increase the probability of your suppliers passing the formal audit and landing your products on Walmart’s shelf
  • Tailored Solution – Pro QC help you choose the right Vendor Compliance program for your product category, supplier origin and ensure a full understanding of the compliance requirement
  • Supplier Rating Increase – Continually improve your supplier’s compliance level, upgrade your supplier score card with the retailers and ensure they pass the audit
  • Cost Reduction – Reduce your QA overhead and travel time by utilizing our network for more cost-effective management of your global suppliers
  • One Stop Shop – Let Pro QC be your single point of contact for achieving compliance and help you reduce the workload on your procurement and QA team
  • Successful Audits – Increase the probability of your suppliers passing the formal audit and landing your products on Walmart’s shelf

Why Pro QC

  • Experts in Vendor Compliance – We have access to the latest retail store standards and have worked with many retailers for decades. We have successfully helped many of our clients pass all big retailer compliance audits and land their products on the shelves of their preferred retailer.
  • Facilitating Implementation – We provide more than a Pass/Fail audit. We intend to work with you and your supplier every step of the way to achieve compliance.
  • Corrective Actions – We deliver comprehensive reports leading to a Corrective Action Plan and progress report that clearly explains the required areas of improvement. We show activities conducted on the day of the visit with clear photo evidence as required.
  • Daily Communication – We maintain a daily communication with our clients and suppliers via your preferred medium of communication (e.g. WeChat, Whatsapp, Skype, Slack, etc.) for a more effective collaboration.

Sample Reports

Get in touch with us for a sample report. Our team will be happy to give you more information on the retail store you are working with.

 

Why choose us?

  • Provide bespoke quality solutions that meet your requirements
  • Enable access to an extensive network of qualified engineers
  • Form a partnership to reduce your production and rework costs

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