VF discloses that its compliance team evaluates all suppliers prior to entering into a business relationship. VF's "supply planning" department is responsible for knowing the capacity of all factories in the supply chain and is consulted before VF's sourcing team places an order, thus ensuring that the order does not overload a factory's capacity. VF aims to minimize fluctuations in its orders to suppliers and works closely with key suppliers to "level-load" orders between high and low seasons. More specifically, VF's brand products include a number of basic and carry-over styles (e.g., backpacks for the back-to-school shopping season), where the demand can be estimated and the manufacturing conducted over a longer term time frame, as opposed to just-in-time production.
Integration of Expectations in Contracts
VF discloses that it communicates its human rights commitments through manufacturing agreements to its suppliers. Its Master Manufacturing Terms and Conditions assert that all VF suppliers are subject to the company's principles, which include provisions on forced labor. Contracts between VF and its suppliers contain contractual language regarding compliance and must be signed by all manufacturers prior to beginning work on VF products.
Communication of Policies to Supply Chain Workers
VF discloses that its factories must undergo compliance training and display compliance posters outlining VF's human rights expectations in the local language of workers.