At Pactics, we understand supply chain management to be the responsibility we take on in ensuring our products are manufactured ethically, from design inception to the final product. We do this not only because social and environmental considerations are at the forefront of everything we do, but also to support our partners’ need for brand security.
Our partners spend a great deal of time and energy carefully crafting their brands and building up trusted relationships with their customers. As has been made clear by numerous media scandals, the revelation of poor working conditions and unethical manufacturing processes can quickly and irreparably discredit such brands, and break the trust a consumer may have in it. By implementing a broad spectrum of thorough policies, we ensure that every step of the supply chain is operating in a way that meets Pactics’ social and environmental commitments. This in turn allows us to guarantee our partners both brand security and peace of mind.
One of the primary ways in which Pactics ensures careful supply chain management is by running our own production facilities in Shanghai, China and Siem Reap, Cambodia. By doing this we can closely monitor every aspect of manufacturing operations, and therefore be 100% confident that our products are being diligently put together by well cared-for staff in a safe and comfortable environment. In addition, a number of our team members have received extensive auditing training, qualifying them to regularly run thorough checks of our in-house operations and ensure we are meeting both legal requirements and our own high standards.
Supplier Selection & Auditing
While much of our production happens within our own facilities, we still need to source raw materials from external suppliers. In these situations we choose to perceive our supply chain responsibility as extending beyond the boundaries of our own operations, as we cannot claim to work responsibly if we use raw materials produced in an unethical way. Therefore, we very carefully select suppliers who share our vision for responsible business practices, and audit them four times annually to make sure they are adhering to our required standards. As part of these audits we also implement a variety of ‘zero tolerance’ policies (e.g. child labour), and any supplier failing to comply any of these areas is immediately removed from Pactics’ supply chain.
Education & Support
Pactics works to very strict standards and it can sometimes be difficult to find suppliers that meet these, or indeed understand our motivations for implementing them. Therefore, we work closely with our suppliers, offering education and practical suggestions on areas we both feel require improvements. In many cases our suppliers are simple unaware of the importance of social and environmental responsibility (for both good business and brand security), and so by offering support and training we can complement our own careful supply chain management, while being part of a much bigger transition to better practices.
As leaders in social and environmentally conscious business in our industry, we founded a forum in Shanghai where like-minded businesses can share their experiences and offer support to others. We have also been working in collaboration with the Dutch consulate to run a conference on supply chain management for not only the people we work with, but for businesses across the world. We believe that by offering education about ethical business practice and the role that suppliers and manufactures play in brand security, we can work towards a shift in mentality around these issues and contribute towards tangible positives changes in these areas.