Being an asset light organization we understand the challenges posed by the supply chain. AFL is committed to doing business with high ethical standards.

We have recently introduced the ‘Responsible Sourcing guidelines’ which contain the minimum sustainability & Compliance standards that our vendors are expected to meet and good practices that may be adopted. These guidelines are instrumental in ensuring that we achieve desired business objectives while making a positive social impact and reduce the overall environmental impact of our operations.

The guidelines are applicable to all the final good (FG) vendor partners and act as a screening mechanism for any vendor that is willing to do business with AFL. AFL’s process for screening and evaluating the company’s vendor base ensures a sustainable and systematic sourcing practice:

Key Achievements

  • 100% of the final goods vendor factories are compliant with Responsible Sourcing guidelines

Target

  • On-board 50% of our strategic vendor partners on Higg Index by 2025

1.Inform:

On receipt of an association request, we inform the vendor about the quality criteria, commercial conditions and the RSC guidelines.

2.Check:

We undertake an initial assessment of the vendor to check:

  • Compliance with the RSC Guidelines
  • Capability to meet the quality criteria
  • Financial stability and ability to sustain

3.Monitor:

Once Approved, we monitor the performance of the vendor partner through an ongoing evaluation process.

4.Engage:

We regularly engage with our vendor partners to help them develop corrective action plans and improve their performance. In case a vendor partner is unwilling to meet the expected standards, we maintain the right to end the relationship.