Odlo Performance Check 2018

ODLO has shown advanced results on performance indicators. With 93% of its own production under monitoring ODLO meets the monitoring threshold required
for members beyond their third year of membership. With a benchmarking score of 79, ODLO has again achieved leader status.

While ODLO strives to maintain long-term business relationships with suppliers, this year ODLO saw a decrease in suppliers where the brand has a business
relationship for over 5 years (from 64% to 47%). ODLO owns two production locations in Romania and Portugal. This, as well as a high leverage at most suppliers, allows effective work on implementing FWF’s Code of Labour Practices.

During ODLO’s last financial year the company further built on existing initiatives to strengthen its monitoring system and due diligence process. ODLO
identified some issues with the forecasting system, where the brand faced higher demand than forecasted, which mainly impacted ODLO’s suppliers in the
EU, increasing the load on suppliers than estimated. To solve this problem, the brand pulled forward around 20% more production into earlier months to
increase flexibility in case the demand grew later in the season, trying to effectively flatten-out the production over the year. The brand continues to try to
work out approaches to achieve the right balance in placing orders.

Challenges remain for ODLO on specific issues for example excessive overtime as well as aspects pertaining to independent worker representation. FWF
recommends ODLO to ensure that process/ system related issues raised in the complaints are improved to prevent future complaints. Worker representatives
should be involved in the development of remediation approaches and the workforce should be informed about the same. Complaints involving overtime
tracking and associated payments needs to be remediated with payouts made to workers more speedily.

Benchmarking score: 79, % under monitoring 93, Category: Leader

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