In 2017 Triaz has shown advanced results on performance indicators and has made exceptional progress. Triaz has monitored 98% of is own production and with a benchmarking score of 78 has been awarded the ‘Leader’ category again.
In the past year Triaz has made strong progress in its due diligence efforts and supplier evaluation system. Due to the creation of a Supplier Management Project team, a documented process for due diligence in sourcing, including a consistent on-boarding process for new suppliers, has been developed. This system evaluates suppliers across various categories, but the sustainability components are extremely thorough and have veto over all other departments.
Additionally, Triaz has developed and conducts an annual Supplier Evaluation of all suppliers, with which it rates the suppliers’ progress on social compliance issues as a key element. This is communicated openly with the suppliers and a joint action plan is developed on how to improve.
Additionally Triaz has continued its root cause analysis of excessive overtime in its supply chain, and has changed some of is practices and sourcing based on this analysis. For example, through this analysis it was discovered that one of Triaz’s main supplier could not manage the small quantities that Triaz was ordering per style due to the extra time it took to convert machines. This was leading to overtime as well as lower profitability for factory. Triaz worked to increase its orders of some styles and move production of other styles to other suppliers who could accommodate. In this way the supplier was able to become more efficient. Continued analysis of excessive overtime is needed at other suppliers in Triaz’s supply chain and an evaluation of the long-term impact of the changes Triaz has made should be conducted. Triaz has also started working with suppliers on living wages by doing a wage analysis at some of its key suppliers.
The initial analyses showed that, at those suppliers prices were in theory high enough to pay a living wage. However Triaz is still lacking enough detailed information on the labour minutes per style and production capacity of many suppliers to know if this is true at other suppliers and also to ensure that workers are in fact receiving a living wage.
Triaz should further work with suppliers to gather more information on wages and create plans on how to take steps towards living wages. Currently Triaz has quite a long ‘tail-end’ of suppliers, where they produce small quantities. FWF recommends Triaz to consolidate its supply base by determining whether suppliers where they buy less than 2% of their FOB are of strategic relevance. Shortening the tail will reduce the social compliance risks the member is exposed to and will allow the member to improve working conditions in a more efficient and effective way.Download