In today’s enterprise world, forced labor and trafficking are increasing day by day in supply chains. This has led to increased scrutiny in enterprises and warehouses. Therefore, it is important for businesses to identify and address these risks. Here is a five-step process you can adopt to make your enterprise free from forced labor.
1. Ensure Legal Compliance with Forced Labor Trade Law
In a business’s supply chain, it is important to ensure that it is free from forced labor. As an owner, you should follow all international and trade laws related to ethical labor practices. Consulting with professional legal advisors can help reduce the risk of import bans on your products and goods. This also protects your company’s reputation in a competitive business market by demonstrating your commitment to ethical sourcing and human labor rights. Forced Labor Trade Law Services help businesses in complying with forced labor regulations for imported merchandise and help create strategic business value.
2. Map your supply chain
The second step is to identify all indirect sources, such as suppliers and contractors, that provide products to your supply chain. You must keep a full list of everyone involved in your business to spot any unethical labor practices. Today, supply chains use advanced software that can read enterprise databases and point out indirect suppliers. These tools provide real-time alerts for emergencies and critical data. With GPS and satellite-based enterprise maps, you can track products from raw materials to finished goods in factories and distribution centers to detect fraud or labor abuse.
3. Spot Red Flags in Products and Supply Chains
You should evaluate your goods and enterprise to check for any red flags. Search for a list of goods made by child labor or forced labor. By comparing this list with your own supply chain, you can clearly identify which sources are linked to forced labor. You can use online tools provided by international labor organizations to access information about unethical labor practices and exploitation. Some professional services assist companies, enterprises, and organizations in identifying fraudulent suppliers involved in suspicious activities.
4. Secure Chain of Custody for All Goods
Another important step to eliminate forced labor from your enterprise is to know who supplies raw materials to your supply chain. This helps you trace goods stored in your warehouse. You should maintain a complete record of packing details, tags, production and transport bills, shipping details, invoices, contracts, and purchase orders in a clear format. This data must be securely saved in enterprise databases and combined with information from other suppliers. Doing so provides a complete chain of custody for the product.
5. Audit Supplier Credentials and Records
Importers must have proof that they comply with global laws against forced labor and that every part of their supply chain follows these rules. They should ensure that each supplier holds valid licenses, certifications, and audit records. They must also keep records of products that are flagged as high-risk or suspected of involving forced labor. This approach makes it easier to identify red flags and remove forced labor from the supply chain.
