The Customs-Trade Partnership Against Terrorism (CTPAT), a program established by the U.S. Customs and Border Protection (CBP), has recently expanded its scope to address a pressing issue in global supply chains – forced labor.
In recognition of the gravity of forced labor as a human rights violation, CTPAT now mandates companies not only enhance their security measures against terrorism but also proactively combat forced labor within their supply chains.
This development underscores the program's commitment to fostering responsible and ethical trade practices, emphasizing the urgent need for companies to rigorously assess, prevent, and mitigate the risks of forced labor throughout their supply networks. By integrating forced labor considerations into CTPAT requirements, the program plays a vital role in promoting supply chain transparency, accountability, and the protection of human rights within the global trade ecosystem.
Assess Your Supply Chain
Conduct a comprehensive assessment of your supply chain to identify high-risk areas for forced labor. Examine countries, industries, and suppliers that might have a higher likelihood of using forced labor.
FRDM’s Monitor Feature allows companies to see forced labor risk in their supply chain through multiple different lenses like industries, countries, purchases or commodities.
Establish Policies and Procedures
Develop robust policies and procedures explicitly prohibiting the use of forced labor. Ensure that these guidelines are communicated throughout your organization and supply chain partners.
FRDM will assess your company’s policies and procedures based on best practices and global standards for protection of human rights in supply chains through our Company Assessment feature.
Due Diligence: Supplier Selection and Auditing
Thoroughly vet potential suppliers using due diligence procedures. Prioritize suppliers who share your commitment to eradicating forced labor. Regularly audit suppliers to ensure compliance with your policies.
FRDM offers multiple tools to vet your suppliers including supplier assessments, training, and corrective action guidance through our Supplier Link feature.
Risk Assessment and Mitigation
Implement a risk assessment mechanism that helps you identify, assess, and prioritize forced labor risks within your supply chain. Develop strategies to mitigate these risks effectively.
FRDM uses multiple risk analysis tools to thoroughly assess the salience and proximity of risk to your business. Mitigation tools and activity tracking keep track of improvements on a supplier by supplier basis.
Training and Capacity Building
Educate your staff and suppliers about the dangers of forced labor and the importance of compliance with CTPAT requirements. Offer training sessions to enhance awareness and understanding.
FRDM offers multiple resources to train your staff and suppliers including our Supplier Training module which tests and scores training sessions
Monitoring and Reporting
Implement a robust monitoring system to continuously evaluate and detect any signs of forced labor. Create a reporting mechanism for employees and suppliers to report suspected cases confidentially.
Our supply chain risk management (SCRM) solution is constantly scanning for any risk signals from your supply chain. Once a risk has been identified, team members can work with suppliers to further interrogate.
Collaboration and Communication
Collaborate with other industry peers, NGOs, and relevant authorities to stay updated on best practices and emerging trends in combating forced labor. Transparently communicate your efforts to stakeholders, demonstrating your commitment to eradicating this issue.
FRDM is building a community of values aligned buyers and sellers who are working together to build responsible supply chains. We work alongside several stakeholders, NGOs, and donate 5% of every subscription fee to charitable organizations working to end forced and child labor.
Continuous Improvement
Regularly review and refine your policies, procedures, and practices to align with evolving CTPAT requirements and changing forced labor landscape.
FRDM is constantly innovating to provide our with the best data and tools to help you build a resilient and compliant supply chain.
FRDM is here to help, so please don't hesitate to reach out
if you have any questions.
Here are some of the supply chain regulations and requirements FRDM helps you with:
EU Supply Chain Act (Proposed)
CTPATCalifornia Supply Chain Transparency Act
Norwegian Transparency Act
Dutch Child Labour Due Diligence Law
Swiss Responsible Business Act
USMCA Trade Ban
Withhold Release Orders (WRO)
GAO-22-105056
SEC Climate Disclosure Rule (Proposed)
