Supply Chain

Optimizing the global supply chain to positively impact industries and communities

 

Flex continuously monitors and drives compliance of our social and environmental requirements throughout our supply chain. We require our suppliers to have a management system in place to ensure continuity and effectiveness of social and environmental activities and mitigate potential risks. Our aim is to leverage the magnitude of our supply chain to make a positive impact in our industry.

Key Achievements
2018 Report

 

720

We screened 720 suppliers, using a new tool provided by the RBA that integrates global risk analytics.

 

 

20%

Our supplier due diligence assessment increased 20% compared to the previous year, totaling 1,150 completed social and environmental assessments.

 

 

41

We have now trained and certified 41 Flex social and environmental supplier auditors, a 20.5% increase from the previous year.

 

 

54,783

We continually collected and monitored 54,783 workers’ working-hour records in the past year.

 

 

11

 

We assessed 11 Flex labor agents in 2017.

Our 2020 Journey
Progress Status

flex GC iconography status 2018

GOAL

STATUS

Increase social and environmental supplier training

Increase supplier screening on social and environmental criteria

Social and environmental supplier requirements

Flex social and environmental training aligns with Responsible Business Alliance requirements and addresses labor practice issues including freely chosen employment, humane treatment, working hours, forced labor, wages and benefits, human rights issues, such as child labor, conflict minerals, ethical conduct, freedom of association, health and safety, environmental and other issues.

Local procurement practices

Flex has a direct and indirect economic impact in the countries where we do business. One measure of our impact is the proportion of spending on local suppliers. In 2017, twenty-four percent of our total spent on direct materials went to local suppliers at our top 10 locations. The spending percentage on local suppliers varies due to the nature of the projects and related OEM customers.

The Flex social and environmental assessment consists of six sections, including labor, ethics, labor and ethics management system, health and safety, environmental and EHS management system. We have expanded our social and environmental supplier performance assessment to include monitoring utilized labor agents. We have also extended our physical audits of social and environmental compliance to more countries, expanding from suppliers located only in China to other regions of the world such as South-East Asia, Europe and South America.

Self-assessment questionnaire (SAQ)

The SAQ provides the opportunity for the supplier to carry out a self-assessment on important social and environmental issues and implement necessary corrective actions before the Audit team visits their locations. This tool provides a clear direction for Flex suppliers and an effective mechanism for continued improvement of environmental, health, safety and labor performance.

New suppliers screening

Flex new suppliers are screened in accordance with our social and environmental qualification process, which includes supplier’s data collection, risk assessment (based on collected data) and physical audit.

We’re a founding member and active participant in the Responsible Minerals Initiative(RMI) formerly the Conflict Free Sourcing Initiative (CFSI). . The RMI promotes the goal of understanding and mitigating social and environmental impacts of extraction and processing of raw materials in supply chains. As an active member of the RMI, we leverage direct and indirect partnerships and uses international standards, e.g. Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, United Nations (UN) Guiding Principles on Business and Human Rights as our guides.

We’re committed to responsibly sourcing minerals and follow the RMI’s Conflict Minerals data reporting format. We’re an active participant in the RMI and have adopted the tools published by the organization, including the Conflict Minerals Reporting Template and the Responsible Minerals Assurance Process (RMAP), formerly the Conflict Free Smelter Program.

Flex collects Conflict Minerals Reporting Templates from both customer-controlled and Flex-controlled suppliers. The collection of customer supplier data is solely for complying with due diligence and reporting obligations. We also collect and provide aggregated declarations, specific to the customer’s supply base. Flex has been involved in collecting Conflict Mineral data from our supply chain since August 2011.

On May 31st 2018 Flex filed its fourth SD Form and Conflict Mineral Report with the U.S. Securities and Exchange Commission (SEC).

 

 

Supply chain innovation