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Building a Social and Environmental Supply Chain
Veja is not only concerned about designing and producing a stylish shoe, but also delivering it through a social and environmental supply chain using three main principles:
? Using ecological materials
? Paying a fair price
? Respecting workers� dignity.
Examples of some of the actions it has taken are described below:
Pay a fair price
The company buys organic cotton from small producers in Northeast Brazil using fair trade rules and long-term commitments. Leather and suede are produced in South Brazil by a tannery pioneering ecological tanning processes. Its ecological leather is chromium free and tanned with natural extracts, and it uses wild rubber from the Amazonian forest that helps increase the value of the forest and preserve it. It pays twice the market price and this is not impacted by world market price fluctuations, which are strongly influenced by European and North American subsidies.
No advertising
This saves resources and means that farmers and producers are fairly remunerated in line with their social and environmental requirements. Although Veja�s fabrication costs are seven to eight times higher than other footwear brands, its �no advertising� policy makes it possible to sell trainers at a comparable price to its competitors.
No inventory
Production is tightly controlled with orders placed six months in advance. No extra inventory is made and production has to adapt to the availability of organic cotton, which can vary and often results in the company not meeting all its retailers� orders.
Environmental transportation
To reduce CO2 emissions, trainers are transported by boat from Porto Alegre in Brazil to Le Havre in France. After arriving in Le Havre, they travel by barge along the canals to the Parisian suburbs. All packaging is made of recycled and recyclable cardboard, the shoe-box was made smaller in 2002 to optimize efficiency and it uses ENERCOOP (a cooperative of green electricity) in its headquarters in Paris.
Ethical production
Trainers are made in a factory located in South Brazil under the following principles: no child workers, good working conditions, fair wages, fair working hours and good living conditions for the workers. One result is that many employees are able to buy their own homes.
Question :
1. How is Veja trying to build a social and environmental supply chain?
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