THE CHALLENGE
The email from the buyer was straightforward. Future contract renewals would require documented evidence of supplier social compliance. Due diligence processes, risk assessment records, corrective action tracking, and a functioning grievance channel accessible to supply chain workers.
This food processing company, turning over roughly INR 90 Cr annually, exported spice blends and frozen products to buyers in Germany and the Netherlands. The business was profitable and the buyer relationships were strong. But when the compliance requirements arrived, there was nothing to show.
The company worked with 38 active suppliers across three states, from raw material growers to packaging vendors. None had undergone any form of social assessment. Procurement managed relationships informally. There were no documentation standards, no risk categorisation, and no monitoring process. The buyer’s compliance review was scheduled in four months.
THE APPROACH
SVEGA delivered a focused supplier compliance engagement built around Pillar 03 (Ethical Supply Chain Controls) and Pillar 05 (Social KPI Assurance Readiness) of the SAGE framework. The engagement prioritised the 12 highest-risk suppliers based on volume concentration, labour intensity, and geographic spread.
TIMELINE
7 Weeks
KEY OUTCOMES
- Supplier risk segmentation framework with tiered oversight logic for all 38 suppliers
- Due diligence workflow covering onboarding, periodic review, corrective action, and documentation standards
- Evidence readiness system producing structured responses to buyer questionnaires
- Grievance access mechanism extended to supplier-level workers through a documented reporting channel
- Buyer compliance review completed successfully, contract renewed for two years