The Challenges for Supply Chains

What are the causes of supply chain abuse?

1. Repressive regimes have shown us that while we have human rights, they can be ignored. In particular, recent years have seen respect for human rights, particularly worker rights deteriorate across almost all countries. 

2. Globalisation has been helped by a massive increase in our ability to travel. This has the benefit of helping workers seek better paying jobs in other countries. Unfortunately a lucrative, yet unethical, industry has developed whereby some of the most vulnerable people (those with the least access to legal help) have been targeted by bad actors. Bangladeshis going to work in factories making tech and apparel in Malaysia, have been charged fees by agents before they travel, after arrival, and even at the end of their working years. This has often amounted to many months worth of wages, leaving them in debt bondage. 

How has outsourcing led to a perfect storm of supply chain abuse?

1. Increased globalisation created a race to the bottom for sourcing cheap labour 

2. A weakened trade union movement

3. Worsened respect for human rights

4. Increased travel and lucrative industries for agents fees

5. Increased human rights risks in supply chains

What are the solutions to supply chain abuse?

1. Factories, warehouses and transport can be powered by wind, solar and other clean energy.

2. Companies can focus on eco-friendly packaging.

3. Companies can also buy from suppliers in ways which both influence and cause them to respect workers basic rights and provide decent. For example, helping suppliers learn better human resources and quality management systems. This lowered excessive working hours and increased wage compliance by increasing productivity through improved communication and production management. 

What is the UN Sustainable Development Goal (SDG) number 1?

The first SDG is no poverty. Despite many companies subscribing to these pledges, this is frequently broken by Western companies using workers in Asia to keep prices low. The consequence of this is many workers need to work 80 hours a week in physical work to pay for slum-like living conditions. 

What are some examples and consequences of supply chain abuse?

1. 1200 workers dying from the collapse of the Rana Plaza factory building in Bangladesh. These factories were in the supply chains of Primark, Benetton, Bon Marche, The Children’s Place, El Corte Inglés, Joe Fresh, Kik Germany, Mango, Matalan, Walmart and other retailers.

2. Lawsuits against chocolate companies Nestle, Mars and Hershey regarding forced child labour, which the cocoa industry has failed to solve. This is despite committing to it 20 years ago and making billions in profits. 

3. Hy Vuthy, the president of the Free Trade Union of Workers for a Cambodia garment factory Suntex, was shot dead after speaking up for improvements for workers. At the time, the factory exported for GAP, Walmart, Target, Loblaw, Coles and other brands.