Driving Operational Excellence with Social Responsibility

United Creation Packaging Solutions (UCPS) is a leading packaging solutions provider based in Suzhou, East China. A subsidiary of Hexing Packaging Group, UCPS was founded in 1973 and now has a growing list of international clients that includes the LEGO Group, Schneider, and Yizi.

Zhaoguo Wang, Quality Manager, oversees the company's product quality, sustainability projects, and workplace safety for the factory’s 170 employees. He shares how joining ESCP has transformed operational practices at UCPS and enhanced its ability to meet global standards for social responsibility.

The challenge: Navigating complex social responsibility standards

“As big, multinational corporations, our customers have high expectations around sustainability, human rights and worker safety,” says Zhaoguo. “And I must admit, before joining ESCP we were finding it difficult to fully understand and implement these requirements.”

One of the major hurdles was in meeting safety regulations. The factory was un clear about various aspects of compliance, including fire safety standards, safety equipment placement and emergency procedures. In addition, UCPS had limited understanding of the full scope of its obligations regarding labor rights, specifically working hours and fair wages.

Alack of clear guidelines and ongoing support from other audit programs hindered the factory’s ability to address these compliance gaps and make lasting improvements.

The solution: Comprehensive support and continuous improvement

UCPS joined ESCP in 2021, on the recommendation of the LEGO Group. Zhaoguo recalls: “Some of their other suppliers had ESCP certification and the LEGO Group had seen the value of not just achieving this standard, but of the extra support ESCP provides to improve factory performance. This was crucial for us, as we wanted not only to pass the certification, but also to improve our management systems and overall operational efficiency."

The factory recognized there would be hurdles to overcome: “We knew we’d have to make some quite big changes if we were to achieve certification, and we did have some reservations,” says Zhaoguo.

“Our business volume was rising, but at the same time it was proving hard to recruit new staff, which caused a real challenge. How were we going to maintain or increase production while at the same time reducing working hours and ensuring that employees were getting the right number of breaks? We didn’t have the knowledge or processes to find a workable answer.

“Thankfully, the team at ESCP put our minds at rest. They worked with us to improve our wage system processes and cut working hours to the required levels without causing significant disruption to production.”

Remediation: Elevating suppliers' standards

ESCP’s support to factories goes far beyond that of typical labor standards programs, with bespoke guidance to help identify the root cause of compliance concerns and prevent them from recurring.

So, after issues were found at an audit – “We had a problem that came from our misunderstanding of requirements relating to our sub-contracted workers” – UCPS was introduced to a robust Remediation Program.

The nine-month initiative begins with onsite capacity-building, in the form of tailored training, to address specific issues. ESCP works closely with the factory to develop a detailed correction plan and bridge the gap between their current practices and the required compliance standards.

The factory is helped to understand what improvements are needed, and receives support throughout the remediation process. After onsite engagement, ESCP continues to work with the factory remotely. At the end of the program, a third-party audit firm conducts another visit to verify whether all the issues identified have been resolved. If all the requirements are met, the factory successfully passes the audit and re-enter the normal certification process.

Zhaoguo says, “ESCP set us very clear targets for what to do to fix the issue and how to do it. What sets ESCP apart is the hands-on support.We can always reach out to our ESCP experts with questions, and they provide the advice we need. The service has definitely surpassed my expectations.”

The benefits: Improved efficiency, reduced costs, and better workforce management

Since becoming ESCP-certified, UCPS has seen significant improvements in operational efficiency and cost reduction, without sacrificing quality or compliance.

One of the most notable benefits has been the reduction in labor costs, Zhaoguo explains: “Thanks to better management and streamlined processes, our labor costs decreased from RMB 0.31/m2 in 2022 to0.26 now.”

These savings were not achieved at the expense of employee well-being. In fact, thanks to the optimized scheduling and better management practices implemented through ESCP’s guidance in the Remediation Program, UCPS was able to lower its overtime hours while maintaining, and even boosting production efficiency.

"We’ve developed a more systematic approach to managing work hours, which has allowed us to optimize production scheduling and reduce overtime. This not only improves worker satisfaction, but also increases overall productivity,” says Zhaoguo.

UCPS’s safety standards have also significantly improved. Previously, the company struggled with safety compliance, particularly regarding on-site safety equipment and fire prevention measures. Now, UCPS has implemented rigorous safety protocols that ensure compliance with both local and international standards.

"Our fire safety systems, worker protection policies, and emergency procedures are now well-aligned with international standards," says Zhaoguo. "We no longer worry about major safety infractions. Our improved safety compliance has not only reduced the risk of accidents but also enhanced our reputation in the industry. Our client scan trust that we are serious about worker protection."

Knowledge transfer and future growth

The benefits of ESCP certification have extended beyond the Suzhou factory, to the company’s new factory in Haining, which passed its audit on the first attempt: "The management practices we developed in Suzhou, with ESCP’s help, were directly transferred to our new facility. It’s a good example of how our capacity to manage labor and production systems has improved from where we were just a few years ago.”

The company’s ability to scale its compliance and sustainability initiatives has opened up new opportunities for growth, says Zhaoguo: "Thanks to the systems we’ve put in place, we are now better positioned to take on more clients with strict compliance requirements. This has made us a more competitive player in the international market.”

The Ethical Supply Chain Program offers industry-leading social compliance audits, trusted supplier certification, and unique tailored support to factories. Click here to find out more.

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