In 2018, DW Shop met most of FWF’s performance requirements. The company had 96% of its purchasing volume under monitoring, meeting the required monitoring threshold. The company has a benchmark score of 56, which places DW Shop in the ‘Good’ category. DW Shop has had long-term relationships with many of its suppliers or has purchased over 10% of a supplier’s production for over half of its suppliers, but the company still has many small suppliers from which it buys small quantities. FWF advises the company to work on consolidating its supplier base and to implement a structured on-boarding system to show how DW takes care of its due diligence in new factories. DW Shop also needs to formalise the process to evaluate the risks of labour violations in the production locations, influencing the decision on whether to place orders, how to prevent and mitigate risks, and weigh the possibilities it sees to contribute to mitigate and remediate the risks.
A significant part of DW Shop’s production comes from homeworker suppliers. DW Shop has continued to follow the monitoring policy regarding homeworkers adopted by FWF. DW Shop has identified more homeworkers and enrolled more suppliers for WEP training, which is a good way to raise workers’ awareness about their rights and the FWF helpline.
Audits conducted in the past financial year have continued to show non-compliance with FWF’s labour standards, even when more commitment can be expected because of high leverage. DW Shops needs to make more progress towards resolving CAP issues. DW Shop’s progress towards resolving existing Corrective Action Plans requires further improvement. The company needs to emphasise work towards payment of a living wage and improve follow-up on remediation of payment of the legal minimum wage. Besides, a root cause analysis of excessive overtime should be done to investigate which steps can be most effective to reduce it. Special attention should be given to piloting advanced work with those factories from which DW Shop buys a large percentage of its production volume.
Benchmarking Score: 56, % under monitoring: 96, Category: GoodDownload