The ideal solution for a complex global product supply chain

Read the branded version of the case study here.

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Committed to ethical, responsible sourcing and tackling modern slavery issues, DK has aligned itself with the Ethical Supply Chain Program (ESCP) since 2008, and has been a full buyer member since 2017.

The publisher makes ESCP certification a mandatory requirement for all manufacturers where ESCP is fully supported in a region.

Partnering with ESCP means DK has the tools and resources to manage, mitigate and remove ethical risks at the factories within its supply chain. ESCP membership provides essential oversight and assurance of labor standards and goes beyond audits to strengthen supplier engagement.

“Our values are centred around customers, collaboration and creativity – and ESCP is perfectly aligned to them,” says DK’s Chief Operating Officer, Shaun Hodgkinson. “First of all, the program ensures that our product is delivered with integrity to its customers. It also facilitates collaboration both with the factories we use and with other ESCP members, which benefits everyone.

“Finally, the team at ESCP isn ever afraid of taking a creative approach for us when we’re faced with operational challenges, in order to find the right solutions.”

The challenge: Harnessing healthy relationships with all suppliers

DK sells to every corner of the globe and publishes books, audio and digital content in 63 languages. It procures services worldwide from a wide variety of providers, with products designed in-house and then manufactured by third party vendors prior to transportation, storage and distribution.

The challenge for Shaun and his colleague Nicola Torode, DK’s Head of Operational Compliance and Sustainability, is ensuring that good working practices are embedded throughout the entire supply chain.

“We’re actively committed to respecting, protecting and upholding the rights of workers, to ensure fair labor within our suppliers, and we ensure that all products are made without infringement of human rights or local laws,” says Nicola. 

“The way that we like to work with our suppliers is the opposite of a ‘them and us’ situation. These relationships are based on our desire for mutual success. The reality is that for us to get products out of the door, we need each supplier to be a healthy, happy business, and we need to understand the culture within that business.”

The solution: A consistent framework and one-stop Responsible Sourcing Platform

An ESCP audit gives DK assurance that the products they sell have been made ethically, respecting the workers making them, and that they comply with legal and social requirements.

More than that, DK is able to monitor suppliers against set criteria both in advance of them being selected as a supplier and regularly thereafter. ESCP’s responsible sourcing management platform Connect provides easy access to real-time audit findings, driving transparency, increasing efficiency and reducing costs – and on-the-ground teams are there to help factories achieve and maintain the standard required.

“Connect is a really positive tool,” says Nicola. “Getting instant notifications allows us to better manage risks and act quickly where issues do come up.

 “We know that we can call ESCP whenever we need to. Their teams are going into the factories, having the conversations and carrying out the progress visits. They have that understanding of what the management culture is, what root issues may exist, and how – or whether – the factory is addressing them.

“It’s incredibly important for us as a business to ensure that our expectations of suppliers, and the working conditions within the supply chain, are continually understood, supported and reviewed. Benchmarking a supplier is far more than an isolated one-off activity, it’s an ongoing process.”

Shaun adds, “There will inevitably be difficult times, and you can only tackle problems successfully when they arise if you've got a very good ongoing relationship with suppliers, which ESCP helps us to have. We place great emphasis on assessing the culture of businesses to determine whether they’ve truly bought into fair labor and sustainability principles, and really want to accompany us on our journey.

 “Some suppliers will throw money at an issue that's found in an audit, without actually examining the underlying cause. What ESCP gives us is a very clear and consistent frame work to measure performance, with a set process to understand whether a company is going to ‘get there’ or not.”

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The benefits: Expertise beyond audit

Nicola says, “You don't know what you don't know until a particular issue crosses your door. And this is when it's brilliant to have the resource available to us as a member, to be able to get help unpicking a topic that requires a really intricate level of expertise that we may not have.

“We’ll often call on ESCP’s support when we’re trying to understand the more complicated aspects of supply chains, such as when subcontracting or outsourcing is involved. There are areas we’re just not equipped to deal with, whether because of the location of the supplier, language difficulties or potential complications around local interpretations of legislation.  

“Our global product supply chain is complex, but working with ESCP is straightforward. The team there is engaging and always wants to listen to our challenges. There are no barriers –it’s an open door and they’re an incredibly helpful resource for us. Being part of ESCP has helped us to establish that structured framework, which was a key goal for us, and to continuously improve our purchasing practices.”

DK actively supports a number of additional ‘beyond audit’ activities, that help build capacity, encourage accountability and create better conditions, including the Gender Equality and Family-Friendly Factory programs, underlining the role major publishers can play in promoting ethical business practices.

“We have significant spend with many of the businesses we engage with,” says Shaun, “and we strive to use this purchasing power to good effect. It’s about more than simply saying to suppliers ‘Can you produce it at a decent quality and at a price that works?’ We’re very eager to help to drive better practices that stick.”