Responsible Sourcing (2024)

Responsible Sourcing (1)

The life of our clothing begins well before any fabric is sourced or sewn. At each step along our supply chain, our values drive improvements in our practices.

OUR FACTORIES

Responsible Sourcing (2)

How We Work with Factories

To make AEO products, we partner with apparel manufacturers that operate more than 300 factories in more than 20 countries around the world. We do not own or operate any factories, so it’s important to develop trusted relationships with our suppliers to make our apparel responsibly.We’re working to enhance our current factory monitoring programs and advance key initiatives that focus on worker well-being, environmental responsibility and increased supplier ownership

How We Source

In our supply chain, we value suppliers that share our commitment to responsibility and respect the safety and rights of their workers. We effectively promote relationships with these types of suppliers by first training our new sourcing associates to understand the importance of compliance in factories. With this base of understanding, our Responsible Sourcing team meets monthly with our Sourcing team to discuss the overall performance of our suppliers, including social compliance, and review any factories in our supply chain that are currently working to remediate noncompliance issues.

WHAT WE STAND FOR

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Supplier Code of Conduct
AEO is dedicated to the highest level of social responsibility. As part of that commitment, we direct our business relationships to those suppliers, including our sourcing agents, vendors, factories and their own suppliers, who share our vision of ethical and fair working conditions.

Factory Fire + Building Safety
All of our strategic factories are required by AEO to comply with national building requirements and fire codes and have training for their workers on safe workplace practices.

Factory Inspection + Improvement
All of the apparel factories we actively source from are visited and inspected every year by our internal team or third-party auditing partners. These audits are based on our Supplier Code of Conduct and go beyond the basic requirements outlined there. Audits are also customized around particular country or region risks to focus on specific topics, like health and safety or migrant workers. Audits may include extra worker interviews if needed, whether those conversations take place onsite or offsite, and include worker accommodation where applicable.

Key Sourcing Policies
Great style shouldn’t come at the cost of the welfare of others. The materials and treatment processes we use are one part of our commitment to responsible sourcing, reflecting our company values and reinforcing our Code of Conduct.

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Responsible Recruitment
We are committed to working with factories that treat all workers with respect, and take special precautions for vulnerable populations, such as those that migrate for work.

Focus on Workers’ Voice
We are committed to working with our factories to foster an environment in which workers feel comfortable raising and discussing labor concerns in a constructive manner.

Improving Women Factory Workers’ Health
We are committed to promoting the health and well-being of the women who make our products in our global supply chain. Our goal is for all strategic factories to invest in women

Responsible Sourcing (2024)

FAQs

How do you ensure responsible sourcing? ›

To source responsibly, businesses need to understand how their business practices and their suppliers' operations may be affecting people and the environment. Companies must look at different areas of business operations, including labour standards, health and safety, business ethics and environmental impact.

Why is responsible sourcing important? ›

Business benefits of responsible sourcing

A more resilient supply chain through supporting more robust communities, operations and operating environments. Protecting the business and operations from social and environmental risks.

What are the 3 main elements of a sourcing plan? ›

Creating a Sourcing and Procurement Process Plan
  • What are the key elements of a sourcing and procurement process plan?
  • Step 1: Identifying opportunities.
  • Step 2: Specification and need analysis.
  • Step 3: Strategic Analysis.
Jan 13, 2017

What is the responsible sourcing questionnaire? ›

Our intent with this Self-Assessment Questionnaire (SAQ) is to offer a harmonized approach to Responsible Sourcing, allowing you to demonstrate the important steps you as a supplier are taking to effectively identify and manage ESG risks and opportunities.

What are the 5 steps of sourcing? ›

For a sourcing process to be successful, it should meet specific objectives.
  • The main objectives of a sourcing process. ...
  • Step1 – Define the spend category. ...
  • Step2 – Supply Market Research. ...
  • Step3 – Create a sourcing strategy. ...
  • Step4 – Choose potential vendors. ...
  • Step5 – Selecting a vendor and negotiating terms.
Sep 11, 2021

How can we improve the sourcing process? ›

Common sourcing strategies in procurement
  1. Maintain open channels of communication across your sourcing/procurement teams.
  2. Focus on holistic improvements, not just cutting costs.
  3. Evaluate your suppliers on an ongoing basis.
  4. Gather information from vendors to maximize your decision-making process.

What is the main goal of sourcing? ›

A well-organized sourcing process helps businesses create an affordable and sustainable system, maximizing efficiency, boosting performance, and contributing to long-term growth and value. Sourcing is a strategic imperative for maintaining a competitive advantage in the market.

What is the responsible sourcing model? ›

A company's supply chain is a highly important resource – collaboration between companies at every step in the chain can open up powerful opportunities to minimize the overall environmental impact and maximize the overall positive social impact.

What is ethical and responsible sourcing? ›

Also known as responsible sourcing or sustainable sourcing, the practice of choosing suppliers known for their environmental and social impact or sustainability can lead to benefits including increased compliance with laws and codes, improved reputation, and protection from a range of operational risks.

What is the first step in a good sourcing strategy? ›

7 Step Strategic Sourcing Process
  • Step 1: Identify Strategic Sourcing Opportunities. ...
  • Step 2: Research and Identify Potential Suppliers. ...
  • Step 3: Develop Sourcing Strategy & Evaluate Supplier Suitability. ...
  • Step 4: Release RFI/RFP/RFQ & Analyze Supplier Proposals. ...
  • Step 5: Negotiation & Supplier Selection (Award)
Jan 11, 2024

What is an example of a sourcing strategy? ›

A practical illustration of strategic sourcing occurs when a manufacturing company assesses its suppliers for essential raw materials, like steel. During this evaluation, the company takes into account several key factors, including supplier performance, the quality of the products, pricing structures, and reliability.

What are the 5 aspects of sourcing? ›

We see it as a combination of five main components.
  • Contract Management. This is an organizational process of centralizing all of the company's contracts, and understanding when they come due and what's in them. ...
  • Utilization Management. ...
  • Vendor Strategy Development. ...
  • Spend Aggregation. ...
  • Objectively Informed Negotiation.
Nov 29, 2018

What is responsible sourcing strategy? ›

A conventional approach to responsible sourcing focuses primarily on the first of these two components – risk management. That means identifying, mitigating and, if necessary, excluding sources from the supply chain if they have unacceptable sustainability risks or impacts.

What is responsible sourcing criteria? ›

7 pillars of responsible sourcing
  • Awareness and Preparation. ...
  • Define and Commit. ...
  • Embed and Governance. ...
  • Assess Risks and Impacts. ...
  • Implement and Act. ...
  • Monitor and Evaluate. ...
  • Report and Communicate.

How can we develop responsible sourcing? ›

Here's how your organization can develop and adopt responsible sourcing practices — step by step.
  • Define policies. ...
  • Set clear goals. ...
  • Set expectations with internal stakeholders. ...
  • Educate suppliers. ...
  • Monitor and measure.
May 5, 2022

How do you ensure ethical sourcing? ›

How to source more ethically. Ultimately it comes down to due diligence, having an ethical sourcing policy, and putting this into practice. This means assessing your suppliers to understand and address the ethical risks and impacts in your supply chain.

How do you manage the sourcing process? ›

7 Step Strategic Sourcing Process
  1. Step 1: Identify Strategic Sourcing Opportunities. ...
  2. Step 2: Research and Identify Potential Suppliers. ...
  3. Step 3: Develop Sourcing Strategy & Evaluate Supplier Suitability. ...
  4. Step 4: Release RFI/RFP/RFQ & Analyze Supplier Proposals. ...
  5. Step 5: Negotiation & Supplier Selection (Award)
Jan 11, 2024

What is responsible sourcing policy? ›

Responsible sourcing means buying agricultural and forest commodities that have been produced in a way that meets acceptable levels of environmental and social performance. If these levels of performance are not yet being achieved, it means working with producers who are committed to progressing towards them.

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