By sourcing our suppliers responsibly
As a trustworthy partner, we are committed to ensuring that we deal with suppliers who also recognize their responsibility to their employees and the communities they affect. We examine our entire value chain for opportunities to foster economic stability among our suppliers. We are committed to business practices that do not infringe on human rights and that are aligned to the various international standards for responsible business conduct, including the Universal Declaration of Human Rights, the International Labor Organization’s Declaration on the Fundamental Principles and Rights at Work.
Ethical business conduct
We use GrandVision’s Supplier Code of Conduct to clearly communicate our expectations and assess supplier performance through a variety of measures. We look to work with suppliers to ensure the continuous reduction of any negative impacts on people and society. The policy includes mandatory requirements on the observation of human and labor rights in business relationships with GrandVision, as set out in our Code of Conduct.
GrandVision ensures that all suppliers receive and acknowledge a copy of the Policy and clearly communicates the importance of ethical business conduct. We verify the alignment to the Supplier Code of Conduct and Social Compliance Standards through regular third-party audits, using a certified grading system. All employees engaged in procurement and with suppliers also have responsibility and accountability for compliance with this policy.
Centralizing local supplier contracts
GrandVision continues to work on managing the number of its suppliers. Currently, the spend is concentrated on strategic suppliers, resulting in a concentrated spend index (CSI) of 95%. In 2016, we partnered with 29 strategic suppliers involved in the primary (production) process. We are now harmonizing all local contracts with suppliers and replacing them with standardized GrandVision Supply Chain (GVSC) contracts, including our Supplier Code of Conduct. GrandVision’s focus in 2015 and 2016 was to first implement the Supplier Code of Conduct and audit process in non-OECD countries, where the majority of Exclusive Brand frames is produced, and where potential risks are considered to be higher.
Auditing our suppliers
Regarding our suppliers in non-OECD countries, we try to enforce responsible operations through third-party certification. In 2016, 15 of the 16 strategic suppliers of our Exclusive Brands frames and sunglasses in non-OECD countries were audited using a supplier audit rating system certified by SGS, the world's leading inspection, verification, testing and certification company, as well as GrandVision’s Internal Audit Department. Overall audit scores are used to indicate, monitor and manage further measures.
In 2016, seven of the audited suppliers fulfilled all requirements and will be audited again after two years. Eight of the suppliers fulfilled most of GrandVision’s Code of Conduct and Social Compliance Standards, but need to make improvements in certain sections. These suppliers will be reviewed again within three months to address the sections that did not achieve a full score during the first audit. If a supplier does not fulfill most of the criteria it will be fully re-audited once again as soon as possible within three to six months. None of the audited suppliers have been assessed as ‘Not fulfilling most of the requirements’.
Aside from our strategic suppliers, we also do business with many local suppliers in the countries in which we operate. These ‘local for local suppliers’ provide our stores with non-core resources, such as furniture, office materials, etc. In recent years, we have harmonized many aspects of our business model, which has led to a decline in the number of local suppliers by 46%, for a total of 223 in 2016. GrandVision now has fewer partners to negotiate with, which as provided improved conditions for doing business and even more affordable eye care to the communities in which we operate.