Partnership Model Presentation

Enabling Responsible International Workplaces

New FFC Partnership Model

Enabling Responsible Supply Chains

Topics Covered

Who is the FFC? What is the partnership model? Why is the FFC expanding membership? What are the new FFC membership categories? What are some of the incentives to join? What comes along with each membership to the FFC? How will it change for existing members? What will membership cost? When is this new partnership model taking effect?


Who is the Fair Factories Clearinghouse?

A non-profit organization that:

• Offers technology tools to members to manage the compliance practices of their global supply chains, as well as to collaborate with others on supply chain compliance

• Enables a membership community and collaborative monitoring practices to pool resources & expertise

• Advances knowledge about global workplace conditions


What is the FFC’s Mission?

Technology empowers companies to conduct ethical sourcing

Experienced partners share capability, enhancing effectiveness beyond a single company’s experience

Collaboration throughout the supply chain reduces audit fatigue and contributes to factory improvements

Global Clearinghouse improves availability, comprehensiveness and standardization of factory information, and advances efforts to improve global workplaces

Our Plan

Our Path


Clearinghouse Concept


What is the partnership model?

The partnership model is a fresh look at membership types in the FFC that is inclusive of all supply chain actors, in order to create opportunities for information management, data exchange, transparency and collaboration at any level in the supply chain

Any actor in the supply chain will be able to join the FFC and use its software tools, for a minimal fee, to manage its compliance performance, and then provide visibility to its buyers and partners:

• Membership at the “top” of the supply chain will remain as it does• Membership to the FFC (and the use of the FFC software) will be

expanded to supply chain actors in the “middle” and the “bottom” of the supply chain, as well as any service providers servicing them


What are the new FFC membership categories?


Why is the FFC expanding membership?

We seek to augment our ability to meet our mission by:

Expanding our reach of our clearinghouse of factory information Creating more opportunities for collaboration, reducing audit fatigue Supporting a “bottom-up” approach to compliance, where suppliers

manage the entire compliance process, and companies who operate Providing tools to supply chain actors that enable them to manage and

share compliance information for its buyers Bringing in the expertise and contacts of service providers into our

membership community, and easing their implementation for clients Gaining access to additional data for analysis, derived from multiple

sources Opening additional sources of revenue


Gain full access to innovative software to manage the nuts and bolts of compliance programs

View / Manage compliance data of suppliers and/or production sites (owned or outsourced)

Identify supply chain overlap, and message others (even if hidden) to initiate collaboration

Provide system access to suppliers and business partners and assign them tasks in the system

Share compliance data (self-assessments, audits & CAPs) with customers

Access compliance documents posted by other members on the sharing platform

Collaborate with others on joint audits & CAPs, to reduce audit fatigue

Network with other FFC members to share expertise

Option to participate in FFC governance, shaping future of the organization

Option to participate in FFC member-driven working groups to drive program innovation

Purch

aser

Inte

rmed

iary

Suppl

ier

What are some of the incentives to join?


Access to FFC’s Audit Management Software

Access to FFC’s Sharing Platform (Full)

Access to FFC’s Sharing Platform (All, minus access to purchaser’s posted documents)

Unlimited use of audit management solution for supply chain Own only

System set-up, member-integration into system time & materials

Helpdesk support, through FFC’s online ticket system

One-On-One system training and consultationtime &

materials

Participation in FFC’s regularly scheduled training webinars (offered monthly)

Custom reports, custom system development time & materials

Purch

aser

Inte

rmed

iary

Suppl

ier

What do membership fees include?


Audit Management System (AMS)

Set your own security and access rules in administration Manage factory data, including contacts Deploy self-assessment tools Create customized audit questionnaires / instruments Request, schedule, deploy and record audits Manage corrective action plans Record audit results offline Store audit / assessment documents Create and communicate supplier designations / statuses Analyze workplace /supply chain information Produce custom reports / exports on any data element


What will the AMS give each member?

Purch

aser

-

Full

Inte

rmed

iary

Suppl

ier

Accounts

Sourcing

Designation

Standard Documents

Self-Assessments

Audits

CAPs

Audit Scheduling / Calendar

Worker Exposure

Reports

Administration (related)

Purch

aser

-

Sharin

g


Sharing Platform (SP)

Search factories Identify supply chain overlap and opportunities for

collaboration Access shared compliance documents (if purchaser) Share factory lists and compliance documents (anonymously

or not) Message other members (even if hidden) to initiate

collaboration Use secure online audit and CAP tools for joint activity across

companies, to collect progress reports and manage performance


Purch

aser

-

Full

Inte

rmed

iary

Suppl

ier

Factory List Overlap

Search Shared Documents

Post / Share Documents

Messaging

Joint Audits & CAPs

Administration

Purch

aser

-

Sharin

g

What SP tools does each member get?


How will it change for existing members?

The use of the system for our current members and their users will not change at all.

All will continue to use the system as is, including having their suppliers log in on their behalf. Members will still control what a supplier can see and do in their system, but now if that supplier also joins the FFC, they will also get their own version of the system.

Scenario: Company X is a current FFC. X created an account in their system for their trading agent, Agent. X gave an Employee of Agent access to the system to upload corrective action plans. Agent also became an Intermediary member of the FFC. Employee will have two versions of the software:

• Logging in for X, where she upload audits only for factories where X has given her access

• Logging in for Agent, where she has full use of the system as defined by Agent’s system administrator


Annual Fees:• Supply Chain Intermediary - $500

• Supplier - $100

• Service Provider - $4,000

• Trade Association Partner - $10,000

What will membership cost for supply chain actors?


What will membership cost for purchasers?

Purchasers pay annual dues and an integration / set-up fee based on net revenues (gross annual income from “private label” and / or “importer of record” products)

Purchasers who are members of the National Retail Federation or the Retail Council of Canada) receive a 20% discount on annual dues

Purchaser members will receive a credit towards their next year’s annual dues for every intermediary and supplier in their supply chain who joins the FFC. Credits for shared factories will be split evenly across active members. Credits will be capped at 40% of the company’s annual dues in any 12-month period


When will this take into effect?

Membership categories are now open for all, and any actor can join at any time

However, additional activities to support this will be live in September:

• The FFC is creating an online registration and payment system, to ease FFC’s administrative costs and member sign-ups

• The FFC will prepare welcome kits and user manuals

• The FFC will begin regular training webinars for ongoing enrollment, supporting various time-zones

For more information: [email protected]

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Partnership Model Presentation