New Regulations and a Supply Chain Disaster! ️

Introduction

Introduction

Hey Supply Chainers! Wherever you are in the world, this is Sarah Barnes Humphrey with you today. Are you ready? Let's talk supply chain!

Opening Remarks

Hello everyone and happy Tuesday! My name is Sarah Barnes Humphrey. I'm the founder and host of "Let's Talk Supply Chain," the "Blended" podcast, and the founder of the Blended Pledge, our nonprofit. Check it out at BlendedPledge.org. I'm super excited to be back with you today. Yesterday was Canada Day, and the Fourth of July is coming up. It's kind of a short week for everyone, and we've got a really fun episode for you today. We have Patricia from Responsible Sourcing Network, and we will be talking all about forced labor and what you need to know because they are stopping packages at the border, and you don't want that to be yours.

What's Happening at Let's Talk Supply Chain?

New Episodes

We've got a brand new episode that came out last Monday with SEI. We talk about borderless e-commerce at your fingertips. If you want to know about Section 321 borderless e-commerce, go and check it out. It's episode 414 wherever you listen to the show.

Yesterday, we released a brand new Women in Supply Chain episode with Evan Seore, episode 415. You can find it on Let's Talk Supply Chain YouTube, wherever you listen to the show, and over on LinkedIn.

Upcoming Live Shows

Remember, if you register or click the "attend" button, we will send you the link even if you can't attend live. Links are in the comments.

• Relix Talks: Dealing with Uncertainty - Wednesday, July 10th, at 9:00 AM Eastern.
• LinkedIn Live with Reveal: Parcel Efficiency - Thursday, July 11th.
• Supply Chain Unfiltered: Mastering Supply Chain Evolution - Wednesday, July 17th.

Newsletter

We are talking about closing the gap of equal pay for all in our newsletter. It covers news articles, the latest podcasts, and more.

Fun Post

Check out our post on LinkedIn about supply chain jobs and zodiac signs. Many Scorpios are working in supply chain, surprisingly.

Introducing Our Guest

Patricia is the founder and CEO of Responsible Sourcing Network and the founder of Yes Yarn Ethically and Sustainably Sourced. She has a diverse background in working with grassroots organizations, Gap, and has been deeply involved in forced labor and human rights. Patricia, tell us more about what you do.

Market Update

Our poll from last week showed that 49% of you said no but wanted to learn more about new regulations impacting product entry. This is why we're doing this episode today. It’s urgent, especially in the US, where shipments are already being detained. Europe has also passed a forced labor regulation. It’s crucial to be proactive about these regulations to avoid costing your business billions.

Patricia’s Work in Uzbekistan

Patricia shared how Responsible Sourcing Network engaged with brands, retailers, and multiple stakeholders to address forced child labor in Uzbekistan's cotton industry. The initiative successfully led to significant policy changes in Uzbekistan.

Article 1: US Escalating Search for Forced Labor Ties in Chinese Textiles

Between June 2022 to April 2024, 8,000 packages valued at $ 3.17 billion were stopped, and nearly 3,300 of those packages were denied entry. This showcases the importance of knowing the origins of your products. The US government is assuming any product from the Xinjiang Uyghur autonomous region is made using forced labor.

Impact

You must understand where your products are coming from, even at tier 2 and tier 3 levels, to avoid having shipments stopped at the border.

Article 2: Potential Vanilla Shortage

There is a potential shortage of vanilla, one of the most expensive spices, primarily sourced from Madagascar. The article discusses diversifying supply bases and conducting due diligence to ensure suppliers are ethical.

Due Diligence

Diversifying suppliers quickly requires thorough due diligence to ensure raw materials are sourced ethically. This is complicated but essential to avoid supply chain disruptions.

Webinar by Responsible Sourcing Network

Patricia invites everyone to the upcoming webinar on July 16th. The webinar will discuss the Yes initiative, due diligence in the apparel and home goods industry, and plans for scaling operations.

Key Takeaways

The Yes initiative is currently focused on fabric and spinning mills, implementing due diligence approaches aligned with OECD frameworks. This can be adapted to other industries and materials.

Conclusion

Thank you, Patricia, for sharing valuable insights. This is a crucial topic that needs more awareness. Everyone, don’t forget to join our next episode with Eric Johnson. Have a great week!

Keywords

• Forced labor
• Responsible Sourcing Network
• Xinjiang Uyghur
• Forced labor prevention
• Supply chain due diligence
• Diversifying suppliers
• Vanilla shortage

FAQ

What is the Uyghur Forced Labor Prevention Act?

The Uyghur Forced Labor Prevention Act makes the assumption that any product from the Xinjiang Uyghur autonomous region is made using forced labor, leading to immediate detentions of shipments from this region.

How many packages were stopped due to forced labor concerns?

Between June 2022 and April 2024, 8,000 packages valued at $ 3.17 billion were stopped, with around 3,300 packages denied entry.

What should I know about diversifying suppliers?

When diversifying suppliers quickly, it is crucial to conduct comprehensive due diligence to ensure that raw materials are sourced ethically and aren't linked to forced labor or other human rights violations.

What will the upcoming webinar by Responsible Sourcing Network cover?

The webinar will discuss the Yes initiative, due diligence in the apparel and home goods industry, and plans for scaling operations in regions like India, Pakistan, Bangladesh, and Vietnam.

How can this due diligence framework be adapted to other industries?

While the Yes initiative is currently focused on textiles, the due diligence framework based on OECD guidelines can be adapted to other industries, helping businesses ensure their supply chains are ethical and compliant with regulations.