Procurement Policy

DAKS Simpson Group Plc (“DAKS”)



1. POLICY STATEMENT

1.1.

DAKS Limited has taken steps to formalise its procurement policy as the holder of the three Royal Warrants.  Based on the Company’s size and developing product supply arrangements, the Company has determined to engage suppliers in the production of DAKS branded products under a procurement policy that takes fully into account key ethical, environmental and sustainability criteria.  These criteria will be assessed as key factors in the selection of suppliers, alongside and equal with commercial factors that prevail upon a small company, and will be regarded as prescriptive insofar as this is feasible.  The implementation of the procurement policy gives structure to the Company’s rigorous vetting process of suppliers and aims to develop a robust and sustainable supply chain.

1.2.

The Company’s basic procurement policy is an overarching statement supported by policy covering in detail ethical strategy, environmental and sustainability policy and anti-corruption.  In the key area of procurement, the Company will continue to work towards traceability and transparency in the supply chains to verify ethical labour practices and respect for animal welfare.      


2. PURPOSE

2.1.

The purpose of this Sustainable Procurement Policy (Policy) is to provide clear guidelines for the way that DAKS expects its procurement activities to be carried out.

2.2.

The Policy applies to all directors, managers and employees of DAKS in any situation where they are involved in:

a. a purchasing process;
b. authorising expenditure or payments; and
c. business interactions with suppliers on behalf of DAKS.

2.3.

Compliance with this Policy is both an individual and a corporate responsibility. The effective implementation of the Policy is dependent upon the active involvement, commitment and adherence from each person involved in procurement process.


3. POLICY OBJECTIVES

3.1.

The Policy commits DAKS and every individual involved in the procurement process, to use reasonable endeavours to ensure that DAKS’ procurement activities are:

a. in compliance with applicable laws and regulations;
b. ethically and socially responsible;
c. environmentally sustainable;
d. economically effective;
e. conducive to maintaining DAKS’ ability to exploit appropriate technological, commercial and organisational developments;
f. not infringing any third party rights such as intellectual property rights; and,
g. open to continuous improvement and development, in particular by the training, development and support of staff.

3.2.

In addition to the above objectives, in so far as practicable, DAKS will aim to only engage those suppliers who subscribe to and operate on similar principles.


4. SUPPORTING POLICIES

To assist in the attainment of the Policy’s objectives, DAKS and its employees shall have regard to the following strategy and policies:

a. Ethical Strategy;
b. Environment and Sustainability Policy; and
c. Anti-Corruption Policy.


5. SUSTAINABLE PROCUREMENT

5.1.

DAKS strives to fulfil its corporate social responsibility by aiming to contribute to a sustainable society by giving consideration to the preservation of resources and ethical trading.

5.2.

DAKS shall prioritise suppliers that give consideration to the following environmental and social issues (where applicable):

a. implementation of measures to eliminate all forms of discrimination, ban forced labour, child labour and illegal labour;
b. provision of a safe and hygienic work environment;
c. payment of living wages and non-excessive working hours;
d. respect for freedom to form or join a labour union;
e. proper management of chemical substances;
f. establishment of a system to assess and control compliance with laws and environmental aspects of products;
g. reduction of greenhouse gas emission, resource and energy saving, and effective use of water;
h. waste reduction and proper waste treatment;
i. the humane and respectful treatment of animals;
j. establishment of a system of internal audits regarding a supplier’s sustainable work practices;
k. transparency and traceability of supplier supply chain;
l. measures to prevent infringements of intellectual property rights; and
m. implementation of measures to ensure:

i. compliance with laws and regulations;
ii. compliance with DAKS’ Environment and Sustainability Policy and Anti-Corruption Policy; and
iii. alignment with DAKS’ Ethical Strategy.


6. ECONOMIC EFFECTIVENESS

6.1.

DAKS expends a significant portion of its revenue on engaging licensees and manufacturers for the production of DAKS goods, and procuring such services in the most economically effective manner, subject to the legal, ethical and other constraints outlined above, is a key consideration for procurement personnel. All individuals involved in the procurement of suppliers shall have regard to the following factors where possible:

a. Quality

The goods produced must meet the level of quality and attention to detail in terms of design, materials, manufacturing workmanship and finishing which would justify the garments being retailed at premium prices.

b. Country of origin

The country of manufacture or production of the goods including where the raw materials are sourced. Preference is given to goods produced and raw materials sourced from European countries.

c. Capacity

The ability of the supplier to meet DAKS’ requirements in fulfilling purchase orders having regard to its resources (e.g. staff, specialised skill set, equipment).

d. Timeliness

The ability of the supplier to meet the agreed timetable for the production of goods, particularly the delivery of finished goods to DAKS by the date specified.

e. Financial Stability

The supplier is solvent being able to pay its debts and honour its obligations.

f. Reputation

The supplier has an established reputation in its field of expertise which engenders trust and confidence in its ability to fulfil its obligations under a supply agreement.

g. Guarantee/Warranties

The supplier offers guarantees/warranties in respect of its goods and services thereby minimising business risk.

h. Cost

The cost charged by the supplier for its goods and services must present the best value to DAKS (value should include where appropriate, environmental and social benefits and improving the competitiveness of the supply chain).



Updated August 2018