"We have warned our factories that keeping double sets of time records is a non-negotiable issue and pointed out that our 'puma.safe' auditors would sooner or later detect the falsified documentation. Some factories conceded and eventually discontinued this practice," the report said.
The company said it was addressing the issues through consistent auditing and by working with suppliers to improve conditions. All of its vendors in China took part in human resource training last year and the project is to be extended to suppliers in Vietnam over the next year, Puma added.
The company's chief supply chain officer, Reiner Seiz, said conditions in China, Vietnam and Indonesia are improving and vendors have access to the most up-to-date machinery. "More than ever, people just want to know where the products they buy are sourced and the conditions in which they are manufactured. The economic crisis has not changed this," he added.
With production globalisation in all FMCG sectors, supply chains are extending further and faster than ever before. Over 75% of footwear exports originate in China, India or Indonesia. PA supply chain expert Michael Tickle comments: “Ensuring end to end supply chain compliance is critical for all the production sites and material movements within and along the chain. In some sectors, the requirement to be able to track and trace finished product may also become mandatory. Companies will have to prove compliance to both legal and fiscal regulations.”
He adds: “Supplier relationship development, management and collaboration are key to achieving legal compliance and sustainability on an ongoing basis. Technology solutions will also become crucial for companies to ensuring tax and duty compliance – beside bar code and labelling scans at some points in the supply chain for high value, technology sensitive or high potential counterfeit products, full track and trace capability and even the deployment of RFID solutions may become reality.”
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