We are operating in a time where transparency and compliance are not just ideal, but required by law. Businesses, especially fashion and textile companies, must prioritize the right software and technology to ensure they have the foundation in place to prevent forced labor risks in their high risk supply chains. With the rapid development of regulations such as the U.S. and EU forced labor prevention laws, choosing the right solution or software can save companies from financial penalties, reputational damage, and ethical dilemmas. Here are the 7 key steps for selecting a forced labor prevention software tailored to your business needs:
Understand Needs and Risks
The first step in selecting a forced labor prevention software is to assess your supply chain’s specific vulnerabilities. Identify high-risk areas, such as supply chains containing materials like cotton or polysilicon, or supplier facilities located in regions flagged by the U.S. Customs and Border Protection (CBP) agency. If you have been subject to detentions, get a clear report on how many or often your shipments are subject to regulatory scrutiny and the outcomes. Additionally, evaluate the scale of your supply chain or how much of it is affected, considering the number of suppliers and tiers involved. Having a clear understanding of your unique risks and compliance priorities will help you focus on software solutions that will efficiently help you identify risks and anticipate challenges with less effort.
Prioritize Comprehensive Solutions
A solution that integrates multiple functionalities is often the most efficient choice. When it comes to forced labor prevention and its regulations, you will need a final software or program that will reliably deliver supply chain mapping, risk screening of suppliers and evidence to demonstrate compliance of a specific shipment or purchase order. It may seem too granular, but this is the level at which the strictest regulations are operating at the moment.
Look for software platforms that offer supply chain mapping at least upstream to Tier 4 and that flag high-risk suppliers or regions discovered in order to stay ahead of compliance issues. Evidence collection capabilities should include shipment records, payments, and transport documents. We previously put together this checklist on the evidence required by authorities like the CBP.
Seek Proactive Capabilities
A proactive solution with technology can save your organization time and resources by addressing risks before they become problems. Features such as streamlined supplier onboarding make it easier to gather primary data while establishing transparency. Real-time monitoring software that continuously supports your due diligence processes will ensure your compliance efforts adapt to evolving regulations. Periodic checks, such as simulated audits or questionnaires, provide an additional layer of assurance by validating supply chain data ahead of the authorities.
Invest in Scalability
As regulations like the US forced labor prevention acts, EU Regulation on Deforestation-free Products (EUDR) and the Digital Product Passport (DPP) expand, your compliance needs will grow. Instead of choosing a point solution for each law, choose a supply chain traceability and compliance software that can scale with your business.
Ensure your software gives you:
- flexibility to add new data points for supplier compliance over time
- a dynamic product experience that will update with your business needs
- continuous upgrades that keeps up with new regulatory requirements.
Test the Ease of Use
Forced labor prevention technology and software must be easy to adopt for businesses, and most importantly, your global suppliers. Ease of use in a supply chain sustainability platforms includes multilingual support for your team and suppliers, plus user-friendly dashboards that provide clear visualizations for performance monitoring and visibility of supply chain risks. Remember to look for automated workflows and the integration of AI in order to save on time and increase data accuracy. The technology that you choose will be used daily by your teams and stakeholders so choose one that suppliers are familiar with or willing to use in order to foster greater collaboration and adoption.
Streamline Evidence in case of Detentions
When faced with a Withhold Release Order (WRO) or shipment detention, time is of the essence. A robust software solution should enable you to quickly map detained shipments back to their specific suppliers and gather the necessary evidence to demonstrate compliance. Moreover, shipment-level mapping and detailed documentation capabilities are essential for meeting CBP’s 30-day window for evidence submission. Being prepared with the primary data ready on demand minimizes disruptions to your operations and strengthens your compliance record.
Consider the Total Cost of Ownership
While basic software might seem cost-effective initially, they often lack the functionality required for full compliance, necessitating additional tools. Investing in an integrated traceability and compliance platform that addresses multiple aspects of forced labor prevention early on can reduce redundancies and save costs over the long term. Assess the total cost of ownership, including implementation, training, and scalability, to ensure the chosen technology delivers value at every stage of compliance.
Conclusion
Choosing the right forced labor prevention technology or software is about investing in a program to enable continuous transparency and responsible supply chains. By understanding your risks, prioritizing comprehensive, user-friendly and efficient data solutions, your business can navigate the complexities of forced labor regulations with confidence. For a comprehensive dive into how to choose a technology solution, download our guide: Choosing the Right Forced Labor Prevention Solution for Your Business.
Ready to explore TrusTrace?
TrusTrace offers a comprehensive traceability and compliance platform built to meet evolving compliance requirements. After many years working closely with multinational brands and suppliers, our software platform enables efficient compliance while fostering collaboration across your supply chain. Explore how TrusTrace can help your organization stay ahead by booking a demo today.
