ESG Report2025 v2 - Flipbook - Page 50
STRATEGIC SUPPLY CHAIN
GOVERNANCE
DIVERSIFYING OUR
SUPPLY CHAIN
SUPPLY CHAIN
DISRUPTIONS
SMI takes a strategic and a proactive
approach to assess and mitigate potentials
risks that could disrupt the 昀氀ow of goods
across our value chain. We are committed
to diversifying our own brand ROKWEAR
suppliers, aiming to 100% derisk this product
range through dual sourcing from di昀昀erent
countries by the end of 2025. At present SMI
sources from 13 factories and as our business
continues to grow and we expand into new
product categories, we are actively seeking
additional sources and markets to support
these e昀昀orts. Currently, we are exploring
new sourcing options as we aim to onboard
5 additional factories including new Indian
specialist factory, Chinese gloves source and
Bangladeshi hi-vis source. Fostering strong
relationships with a variety of partners,
ensuring we have a resilient and 昀氀exible
supply chain.
Shipping line risks: A signi昀椀cant risk is posed
by the current pressures within the shipping
industry, where increased demand and
delayed shipments are driving up freight
rates and contributing to container instability.
Additionally, geopolitical challenges such
as issues in the Red Sea and shipping risks
along Middle Eastern routes, coupled with
rising fuel surcharges, continue to create
uncertainty in logistics. SMI acknowledges
these risks and is actively collaborating with
our freight partner, Supreme, to optimise
the most e昀케cient routes. We are committed
to continuous communication and working
together to mitigate risks wherever possible.
BREAKDOWN OF
PRODUCTS ACROSS
THE CATEGORIES:
Workwear
1,386
PPE
729
Workplace
Supplies
2,594
Tools &
Equipment
2,660
Cleaning &
Hygiene
309
TOTAL:
7,678
49
www.smigroupuk.com | hello@smigroupuk.com | 0330 441 3500
Raw material price 昀氀uctuations: To
moderate the impact of 昀氀uctuating raw
material prices, we are actively working
with long-term suppliers and employing
strategies to stabilise costs. Furthermore, we
are diversifying our supply base to reduce
dependence on speci昀椀c materials and ensure
greater resilience.
Extreme weather events: Adverse weather
conditions, such as storms at key ports, the
monsoon season, and typhoons in regions like
China, can cause signi昀椀cant disruptions to
both shipping and the broader supply chain,
impacting delivery schedules and increasing
costs.
Geopolitical disruptions: Geopolitical events,
such as the 2024 strikes in Bangladesh over
pay, present potential risks. While we were
not directly a昀昀ected in this instance, such
disruptions remain a factor to consider in
our ongoing risk management strategies.
Our ongoing collaboration with third-party
auditors provides us with valuable insights
and industry-leading guidance, enabling
us to e昀昀ectively navigate and overcome the
challenges posed by geopolitical events.
