Shareprice

We do not manufacture the vast majority of the products that we sell, so we need to maintain relationships with suppliers and manufacturers worldwide who can meet our high standards

They must demonstrate that they operate in accordance with recognised standards that uphold human rights and safety, prohibit modern slavery and promote sustainable sourcing.

Executive responsibility:

Product Director

Link to our Customer 1st strategy:

  • Our customer promises
  • Committed supplier partners

Link to business principles:

Sell more Be committed Do things our own way Keep it simple

Link to principal risks:

Brand damage; regulatory and compliance; climate change

UN Sustainable Development Goals

   

Our Policies

 

Fair and consistent: One of our business principles is to deal with suppliers in an open and honest way. We require 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 29 June 2019 was 44 days (2018: 31 days), and we consistently pay over 90% of our invoices within agreed terms.

Human rights: Effective management of human rights throughout our supply chain is built into our product procurement procedures. All product suppliers are asked to sign our Code of Conduct, based on the Ethical Trading Initiative (ETI) base code, with a strengthened section on slavery. This requires that suppliers 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. Our policy is available here.

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. 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.

Our in-house Quality and Sourcing team has extensive experience of working with factories to improve quality, compliance and ethical standards. Our sourcing partners monitor standards and work to improve them on our behalf. Where non-compliance is discovered we work with a supplier to help them achieve compliance, usually within six months. Critical non-conformances such as use of child labour, working against choice/slavery or absence of valid building certificates are escalated immediately.

Modern slavery: We have 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.
 

Measuring our impact

  • Percentage of Tier 1 suppliers mapped: 100%
  • Percentage of factory base for own brand products with audit no more than two years old: 98%
  • Percentage of green or amber audits: 77%

What’s next for 2019/20

  • Continue to work through corrective actions plans with factory base, towards target of 90% audits to be green or amber by FY21
  • Complete modern slavery assessment for UK sites holding Dunelm brand product including Pausa
  • Carry out surveillance audits on Dunelm sites in higher risk regions
  • Map Tier 2 sites for Dunelm own brand product
  • Develop a risk-based programme for assessing third party branded suppliers
  • All Dunelm support and distribution sites to complete a modern slavery audit and managers training programme

Our targets

  • 100% of factory base for own brand products with audit no more than two years old by FY20
  • 90% green or amber audits by FY21

2018/19 achievements

  • We have appointed Verisio Ltd, an ethical auditing and modern slavery specialist, to manage and risk assess all audits
  • We have updated our policy to accept a broader range of audits from globally approved audit bodies, all of which support the ETI base code
  • Suppliers have signed our Quality Manual which sets out our policy and consequences for non-compliance
  • We have fully mapped our Tier 1 suppliers and have a valid audit against 98% of our own brand product manufacturing sites
  • Our audit programme has been extended to UK warehouses that stock Dunelm brand product and our Pausa café suppliers
  • We have launched an online portal for suppliers to upload evidence to show continuous improvement with their sites and close off corrective actions. This is actively managed and verified by Verisio
  • Training has been provided to UK suppliers of own brand products, to raise awareness of modern slavery and how to improve procedures to reduce the risk within the supplier’s supply chain
  • We have completed an ethical audit of our own manufacturing site
  • We have developed an in-house modern slavery desktop audit which is being rolled out to our distribution and manufacturing sites and those of our key UK partners