A clothing manufacturer was concerned with potential impacts of contract manufacturing in certain international locations upon its risk profile, ESG key performance indicators (KPIs), and image in the marketplace.
With members of the client team, our personnel conducted risk assessment of the contracted portions of their supply chain, including visits and assessments of contract manufacturing in various countries. Operating practices of contractors were documented, risks analyzed, and recommendations made to strategically close out certain contracted partners.
The proactive assessment of third-party supply chain risk, and implementation of a strategy to prioritize and move on from specific contractual relationships allowed the manufacturer to de-risk certain parts of its operations in a manner consistent with its long-term strategy and ESG KPIs.
