Wal-Mart COC Audit policy change-2009
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Dear Supplier, Hello, WAL-MART Supplier Please find below the policy and process changes that Wal-Mart Ethical Standards team is implementing to ensure the achievement of our 2009 Responsible Sourcing objectives of 90% Volume shipped from Green and Yellow factories for Direct Import (GP) Suppliers In order to achieve the W/M 2009 goal of 90% of products shipped from yellow and green factories, Wal-Mart ES Group will implement the following new policies and procedures: Ethical Standards Policy changes Changes to Ethics Policy A Revised Red-Disapproval Policy: Changes to the Red-Light Factory Freeze Policy Beginning May 1, 2009, 3 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year. Starting from May 1, 2009, factories that receive 3 Orange lights within 2 years from the most recent audit will be considered Red Light and will be frozen for one year; In January of 2009, the Orange Follow-up audit period was revised from 120 to 180 days, to enable factories to more effectively remediate improvements and also to allow time for supplier development efforts to take effect. Given this extension, the Red-Disapproval process for both GP and non-GP suppliers' factories has also been revised. Previously, 4 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year. Starting from January 2009, in order to allow suppliers/factories more time to make effective improvements, the Orange Light follow-up audit period has been increased from 120 days to 180 days; Factories with 2 Orange assessments: Factories that already have received 2 Orange assessments in 2 years from the last audit date; receiving one more Orange assessment (in that period) will result in their being disapproved. A factory that has received two orange audits within two years from the most recent audit will be blocked if it receives another orange audit during this period; Following the second orange audit, a factory will remain active for a 6-month period, giving the suppliers time to explore alternate sourcing options. During this 6-month period, the factory can continue to produce and ship. At the end of this six month period, the factory will be placed in an "inactive" status by Ethical Standards. If a factory has 2 Orange assessments, the factory will remain in the "Active" status for 6 months. This will give suppliers time to explore the reasons or prepare to provide other options. During this period, the factory can produce and ship. After 6 months, the factory is placed in the "Inactive" status; To continue business with factories with 2nd Orange assessment, an approval must be obtained from the respective Sourcing Managing Director(s) before the factory can be placed back into an "Active" status If the supplier wants to continue to use a factory that has been orange-lit twice, the supplier must obtain approval from Wal-Mart's SMD before the factory can be put back into "Active" status; However, after a factory receives its 2nd Orange assessment, future order placement would be at the discretion of Wal-Mart, and not guaranteed, In any case, if a factory has received 2 Orange Lights, whether it can continue to place orders with the factory is determined by Wal-Mart rather than the supplier/factory guarantee; Factories with 3 Orange assessments: Factories that already have 3 Orange assessments in 2 years from the last audit date on file as of May 1, 2009 will still be allowed to receive orders. For this small group of factories, we will simply allow one more audit to see if the factory can demonstrate improvement. Factories that have received three orange lights: As of May 1, 2009, if a factory has received three orange lights within two years since the last audit, the factory is still allowed to accept orders. For this small number of factories, we will still allow one more audit to see if the factory has improved; NOTE: Due to the seasonality and nature of business, the above policy is not applicable to Fresh Produce packing facilities (pack houses We are currently reviewing the process to implement a similar policy for such facilities. B New Factory On-Boarding Policy Beginning May 1, 2009: All “NEW” factories for Global Procurement (Direct Import) Type “A” Suppliers must receive a Yellow or Green ES audit assessment before any orders can be committed. Starting from May 1, 2009, new factories of Supplier A must obtain a yellow or green ES audit result before placing orders; Any Inactive factory with a Green or Yellow rating (if not expired) will not be required to undergo prequalification or an ES audit to be reactivated Any factory with an inactivated Green or Yellow Light will not be required to do a "prequalification" or ES audit if it is reactivated (not expired); All expired and Inactivated Orange factories would require ES audits (Prequalification audits for Type "A" suppliers) and must receive a Yellow or Green audit assessment before order commitment All “expired” or “frozen” Orange factories need to undergo ES audits (Type A suppliers need to undergo prequalification) and must get a Yellow or Green light before placing orders; Beginning October 1, 2009: All “NEW” factories for Global Procurement (Direct Import) Type “B” & “C” Suppliers must receive a Yellow or Green ES audit assessment before any orders can be committed. From October 1, 2009, all BC suppliers must get a yellow or green light before placing orders with new factories. Thank you for your partnership Dear Supplier, Hello, WAL-MART Supplier Please find below the policy and process changes that Wal-Mart Ethical Standards team is implementing to ensure the achievement of our 2009 Responsible Sourcing objectives of 90% Volume shipped from Green and Yellow factories for Direct Import (GP) Suppliers In order to achieve the W/M 2009 goal of 90% of products shipped from yellow and green factories, Wal-Mart ES Group will implement the following new policies and procedures: Ethical Standards Policy changes Changes to Ethics Policy A Revised Red-Disapproval Policy: Changes to the Red-Light Factory Freeze Policy Beginning May 1, 2009, 3 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year. Starting from May 1, 2009, factories that receive 3 Orange lights within 2 years from the most recent audit will be considered Red Light and will be frozen for one year; In January of 2009, the Orange Follow-up audit period was revised from 120 to 180 days, to enable factories to more effectively remediate improvements and also to allow time for supplier development efforts to take effect. Given this extension, the Red-Disapproval process for both GP and non-GP suppliers' factories has also been revised. Previously, 4 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year. Starting from January 2009, in order to allow suppliers/factories more time to make effective improvements, the Orange Light follow-up audit period has been increased from 120 days to 180 days; Factories with 2 Orange assessments: Factories that already have received 2 Orange assessments in 2 years from the last audit date; receiving one more Orange assessment (in that period) will result in their being disapproved. A factory that has received two orange audits within two years from the most recent audit will be blocked if it receives another orange audit during this period; Following the second orange audit, a factory will remain active for a 6-month period, giving the suppliers time to explore alternate sourcing options. During this 6-month period, the factory can continue to produce and ship. At the end of this six month period, the factory will be placed in an "inactive" status by Ethical Standards. If a factory has 2 Orange assessments, the factory will remain in the "Active" status for 6 months. This will give suppliers time to explore the reasons or prepare to provide other options. During this period, the factory can produce and ship. After 6 months, the factory is placed in the "Inactive" status; To continue business with factories with 2nd Orange assessment, an approval must be obtained from the respective Sourcing Managing Director(s) before the factory can be placed back into an "Active" status If the supplier wants to continue to use a factory that has been orange-lit twice, the supplier must obtain approval from Wal-Mart's SMD before the factory can be put back into "Active" status; However, after a factory receives its 2nd Orange assessment, future order placement would be at the discretion of Wal-Mart, and not guaranteed, In any case, if a factory has received 2 Orange Lights, whether it can continue to place orders with the factory is determined by Wal-Mart rather than the supplier/factory guarantee; Factories with 3 Orange assessments: Factories that already have 3 Orange assessments in 2 years from the last audit date on file as of May 1, 2009 will still be allowed to receive orders. For this small group of factories, we will simply allow one more audit to see if the factory can demonstrate improvement. Factories that have received three orange lights: As of May 1, 2009, if a factory has received three orange lights within two years since the last audit, the factory is still allowed to accept orders. For this small number of factories, we will still allow one more audit to see if the factory has improved; NOTE: Due to the seasonality and nature of business, the above policy is not applicable to Fresh Produce packing facilities (pack houses We are currently reviewing the process to implement a similar policy for such facilities. B New Factory On-Boarding Policy Beginning May 1, 2009: All “NEW” factories for Global Procurement (Direct Import) Type “A” Suppliers must receive a Yellow or Green ES audit assessment before any orders can be committed. Starting from May 1, 2009, new factories of Supplier A must obtain a yellow or green ES audit result before placing orders; Any Inactive factory with a Green or Yellow rating (if not expired) will not be required to undergo prequalification or an ES audit to be reactivated Any factory with an inactivated Green or Yellow Light will not be required to do a "prequalification" or ES audit if it is reactivated (not expired); All expired and Inactivated Orange factories would require ES audits (Prequalification audits for Type "A" suppliers) and must receive a Yellow or Green audit assessment before order commitment All “expired” or “frozen” Orange factories need to undergo ES audits (Type A suppliers need to undergo prequalification) and must get a Yellow or Green light before placing orders; Beginning October 1, 2009: All “NEW” factories for Global Procurement (Direct Import) Type “B” & “C” Suppliers must receive a Yellow or Green ES audit assessment before any orders can be committed. From October 1, 2009, all BC suppliers must get a yellow or green light before placing orders with new factories. Thank you for your partnership Ethical Standards Team |
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