By now most brands engaged in monitoring supply chain labor conditions realize the limitations of going it alone. Weak relationships and low volume orders can make sincere factory engagement next to impossible. Furthermore, duplicative auditing adds unneeded costs and frustration. The most logical and effective way of addressing this limitation is to work together. For companies willing to strategically combine labor compliance effort and increase the effectiveness of factory assessments and remediation support, Level Works provides a model for collaboration.

• Confidentiality; avoid leaking proprietary information and/or the risk of anti-trust allegations
• Ease of Coordination; no need to provide entire factory lists to peer companies
• Accountability; difficult to hold peer companies accountable for poor execution
• Credibility; third party credibility allows for impartial assessment of factory conditions
• Cost; collaborating provides an opportunity to redirect audit cost savings towards training and capacity building

Although working with a third party, such as Level Works, can alleviate much of the strain of collaboration, finding the right partner is still very important. The best partner is one that shares a similar philosophy with regards to compliance objectives. A good partner also recognizes that flexibility can play an important role in building consensus and driving factory improvement.

1. Sign Confidentiality and Collaboration Terms Agreement
   
   To avoid any conflicts pertaining to anti-trust issues and propriety information, its always advisable to sign a confidentiality and collaboration terms agreement before getting started. Level Works can provide a template for review and will also be party to any such agreement.
   
2. Define Collaboration Scope and Goals
   
   Like any project, first defining the scope and objective provides important guidance when making small on-going decisions. Essential questions to ask are: How many factories should be incorporated? What countries should be included? Should remediation activities be included?
   
3. Identify Shared Factories
   

   Rather than exchange supplier factory information with each other, Level Works can review each company's factory list and help identify where overlap exists. Thus, information will only be exchanged and/or discussed concerning shared factories. Once the list is compiled, shared factories should then be prioritized by each company based on active/non-active status, % of production in the factory(s), strategic importance, assessment history, and country or product category risk.

4. Determine Collaboration Procedures
   

   Before getting started, it's advisable to work with Level Works in determining the level of variance that exist between each company's existing compliance programs with regards to protocols and procedures. Specific areas that should be reviewed include auditing, reporting and remediation expectations. Although coming to an agreement on every detail would be nice, is not necessary for collaboration. However, its helpful to identify the main differences. In most cases Level Works can balance existing program variance and work within two systems for reporting.

5. Communication with Shared Factories
   

   Once the above 4 steps have been completed, it's critical that shared supplier factories have a clear understanding of the collaboration objectives, and the role of key players (including Level Works). Generating a comfort level with each vendor/factory is essential to the success of any program, collaborative or other.

6. Start Collaborating!!

For more information, please contact Level Works at info@level-works.com.