PLM (Product Lifecycle Management) and supply chain management have historically placed a strong emphasis on KPIs like supply chain agility, cost reduction, and time to market. However, there is a new requirement: guaranteeing social compliance and ethical sourcing.
Designing and delivering outstanding brands requires making sure goods are safe, responsibly produced, and adhere to a plethora of intricate legal requirements. Businesses can’t afford to be linked to hazardous working conditions, child labour, manufacturing mishaps, and goods that use prohibited materials or don’t adhere to rules.
It is incredibly complicated to manage social compliance and ethical sourcing, as it involves working with brands, retailers, and a variety of other stakeholders. It may be divided into three fundamental sections:
Companies must assess their vendors according to social compliance standards, traditional measures like pricing, quality, and performance, and by asking them for complete openness about subcontractors.
A variety of competing standards, such as Standards of Vendor Engagements (SOVEs), which may vary depending on the client, as well as governmental, environmental, and quality rules, must also be managed by businesses. When vendors don’t satisfy the criteria, they must then take corrective action.
Allowing information to be accessed and shared by those involved in logistics, procurement, and product development lastly helps to boost supply chain transparency and trade partner confidence.
PLM may play a far bigger function than it is typically thought of as, synchronizing all information, processes, departments, and geographical areas. It is generally seen as a tool for product design and development.
PLM guarantees a smooth, real-time flow of data that covers all compliance-related domains, including vendor, environmental, regulatory, and product compliance. Utilize PLM as the central component of an integrated compliance system while conducting product design and manufacture.
PLM is the best platform for managing social compliance and ethical sourcing since it possesses the following qualities.
Cooperation and reporting improvements
PLM solutions provide improved global cooperation by ensuring that all stakeholders work together to achieve similar compliance and sourcing goals, with full responsibility and traceability. Even while social compliance and ethical sourcing might be challenging, businesses cannot afford to disregard them. PLM may be used by most businesses as a centralized system for assuring compliance, which is essential for brand protection. This brings us full round to PLM’s primary goal, which is to build and advance your company’s brand.
Access to information is simple
PLM systems may offer consolidated access to audit and test results, SOVEs, vendor factory profiles, data on capabilities and capacity planning, and other crucial information to internal and external stakeholders. The system can save vendor scorecards and KPIs, which aid in identifying the best suppliers for sourcing choices.
PLM systems frequently use proactive calendars to keep track of certification and audit due dates. Instead of depending on emails, faxes, and spreadsheets, a collaboration that is linked to SKUs, audits, or purchase orders facilitates communication inside the system.