Sears Supplier Preliminary Preparation

SEARS factory audit arrangement: After the factory receives the order and before the production process begins, the supplier must take the initiative to contact the Global Social Responsibility Audit Department to register for it. As long as the supplier keeps its collaborative factory in an activated state, and its supplier is required to bear all audit costs. In most cases, the factory can start production immediately after registration (it means that the supplier has submitted the factory information according to the above procedures and received the receipt confirmation from the Global Social Responsibility Audit Department). In some cases, the factory needs to register in such cases, including:
(1) Poor historical audit record,
(2) A supplier-related factory that has failed to comply with Sears’ factory registration policy once or repeatedly;
(3) Factories whose cooperation with Sears HBC has been terminated (termination period is up to 12 months).
Suppliers who wish to use a factory subject to the pre-audit policy should be contacted and informed of this requirement. Suppliers should apply to freeze a factory when all Sears products have been shipped from the factory and no further Sears orders will be made within the next 6 months. Once a factory is placed on freeze, it cannot be reactivated for 6 months. Suppliers may not produce for Sears in unapproved countries (countries prohibited by the United States). Currently, the list includes the Balkans, Burma, Cuba, Iran, Iraq, Liberia, Libya, North Korea, Palestine, Rwanda, Sudan, Syria, and Zimbabwe. Suppliers must check the U.S. Department of State website regularly to confirm the list. All suppliers must update their information in the Global Social Compliance Audit Department database when supplier and factory contact information, brands produced, the name of the Sears buyer or purchasing manager who placed the order, and the factory of production change.
Audit arrangements:
If the factory has been selected by Sears Social Responsibility for an audit under the social responsibility audit program, Sears HBC will arrange for auditors from Sears HBC or a third-party notary firm to conduct an unannounced factory audit, and the cost of this audit will be borne by the supplier.
Most audits are unannounced, but suppliers/factories will be notified of the audit deadline within 15 days in advance.
Wage Investigation and Improvement Program (WRIP) is a program provided by Sears HBC for Chinese factories. Factories that have not been found to have false information and no serious violations in the recent Sears HBC audit will be considered for the WRIP program, and their suppliers must submit information on the past business volume of the factory with Sears HBC or the expected business volume with Sears HBC.
Factories that enter the program must be able to meet the wage improvement requirements promised in the annual WRIP plan approved by Sears HBC and meet the legal wage and working hours requirements within the specified time. Factories that fail to comply with the annual WRIP commitment plan accepted by Sears HBC or fail to meet the legal requirements within the specified time will be terminated.