Under One Roof
Fair and consistent – One of our business principles is to deal with our suppliers in an open and honest way. We ask all of our suppliers to sign our standard terms and conditions in advance of commencing trade, and we have signed up to the Prompt Payment Code. The number of days’ purchases outstanding for payment at 1 July 2017 was 38 days (2016: 38 days).
Human rights – Suppliers of products for resale with whom we trade directly are asked to sign our Code of Conduct, based on the Ethical Trading Initiative (‘ETI’) base code, with a strengthened section on slavery. Suppliers must provide a clean and safe work environment, workers must be treated with respect and earn a reasonable wage, and relevant local laws and regulations must be met.
Effective management of human rights throughout our supply chain is built into our product procurement procedures. Our in-house technology team has extensive experience of working with factories to improve quality and ethical standards. Our Far East sourcing partners monitor standards and work to improve them on our behalf.
All suppliers of Dunelm branded products must have a satisfactory audit in place which is no more than two years old, and a valid building and fire safety certificate. From 2016, we have used two Pillar SMETA audits, which cover the Dunelm code and a wider range of qualitative measures. During 2017/18 we will establish these standards for suppliers of our Worldstores, Kiddicare and Achica branded products. Supplier branded products are not subject to audits but suppliers sign our Code of Conduct (or equivalent) and an assessment is made of their standards and capability.
Where non-compliance is discovered we work with a supplier to help them achieve compliance, usually within three months. Critical non-conformances such as use of child labour, working against choice/slavery or absence of valid Building or Fire Certificates are escalated immediately, and supplies cease until the issue has been resolved. Ultimately, if progress is inadequate, we will cease to trade with the supplier.
Modern slavery – In 2016 we assessed our own facilities and supply base (products and services) for modern slavery risk and have required the major providers to sign our Code of Conduct. Our audits of suppliers of our Dunelm branded products also covers modern slavery. Our statement made pursuant to the Modern Slavery Act 2015, which contains further information, is available here. In the coming year, we will extend this to the Worldstores business which we acquired in the year.
Provenance – We are raising our provenance requirements, with particular emphasis on timber sourcing, cotton, animal welfare, feathers and down, polyester and use of microfibres. We will be strengthening our policies and practices in these areas.