Page 81 - ABFRL SUSTAINABILITY REPORT 2016-17
P. 81

ABFRL
                                                                                                      SUSTAINABILITY
                                                                                                        REPORT   /









            VENDOR                                      Apart from assessing supplier performance, the VCoC
                                                        also doubles up as a means for suppliers to
            DEVELOPMENT  AND                            demonstrate their alignment to our sustainability
            MANAGEMENT                                  targets and take a step towards a greener future.
                                                        VCoC audits are conducted on a regular basis and
                                                        follow-up audits as per necessity. We are currently in
            The supply chain, being a critical          the process of achieving our ambitious target of
            component in the value chain of a           auditing 100% of our supplier base for tier 1 suppliers.
            product, offers great opportunities for
            implementing initiatives that can lead to   Sustainable Sourcing
            sustainable production and                  There are two major channels through which all our raw
            manufacturing. Thus, it is vital to         materials are sourced: fabric and conversion. While all
            collaborate with the supply chain to        fabrics are sourced from reputed manufacturers to
                                                        ensure high quality standards, the conversion materials
            achieve the desired sustainability goals.   are sourced from medium and small suppliers, thereby
                                                        providing an impetus to this market segment.
                                                        Along with this, we are also focussing on sourcing
                                                        materials from local artisans and showcasing designs
                                                        unique to that region through our clothing lines. At the
                                                        corporate level, our commitment is to work with the
                                                        society to improve living conditions of economically
                                                        challenged people.


                                                        Green Channel Partnership (GCP)

                                                        It is a unique kind of joint improvement initiative where
                                                        key fabric mills and garmenting vendors are identi ed
                                                        based on their internal systems, infrastructure and
                                                        management commitment to meet the desired
                                                        standards and their past performance.
                                                        GCP is a supplier self-certi cation programme for fabric
                                                        inspection and lab testing based on our standards and
            The various initiatives undertaken for the suppliers are   requirements. Green Channel vendors are certi ed with
            listed as below:                            one year validity and renewed based on the vendor
                                                        performance index.
            Process Improvement                         Green Channel supplier performance is monitored
                                                        through random audits, regular inspection, testing
                                                        correlation, product rejection communication and VPQI
            To improve overall process quality, critical processes are   performance analysis.
            identi ed with respect to crucial requirements of
            customers. The relevant quality parameters of those
            processes are then identi ed and measured. The   Higg Index
            improvement parameters are taken on priority and
            assigned to a project team.
                                                        We believe that the bene ts of Higg Index must be
            The progress of all such projects is regularly monitored   extended to our value chain, and therefore, we
            until the desired results are achieved.     introduced the concept and facilitated self-assessments
                                                        for chosen textile and garmenting manufacturers.
            ABFRL Vendor Code of Conduct                In addition, we also helped them strategise action plans
                                                        to enhance their environmental and social performance,
                                                        and thereby improve their overall Higg Index score.
            Our code of conduct recommends environmental and
            social management systems as outlined  by the Indian
            Factories Act, International Labour Organisation (ILO)
            and SA 8000 standards.


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