Metcash leverages EiQ solution to manage salient risk in its supply chain
Metcash, Australia’s leading wholesale distribution company, uses the EiQ supply chain intelligence platform to monitor and manage human rights and environmental risks in its supply chain. Metcash conducts its environmental, social, and governance (ESG) due diligence with the support of EiQ, which helps the company focus its efforts on ‘the most salient risk areas’ in its supply chain.
EiQ has streamlined our risk management and allowed us to gain a more comprehensive view of the critical issues in our supply chain. With the help of EiQ, we have a better understanding of where the acute risks are present among our supplier base, which allows us to more intentionally and effectively allocate remediation action and mitigation efforts.
Using EiQ, Metcash screens more than 11,000 vendors and manufacturing sites, as well as non-trade products and services in food, liquor, and corporate sectors for their ESG risk exposure. The risk intelligence platform enables Metcash to identify the areas in its supply chain where intervention is needed and identify suppliers that are located in sourcing regions denoted as ‘high risk.’ EiQ’s high-risk indicator is used to categorise a sourcing country, region or commodity that has a greater exposure to human rights and environmental violations based on audit data and civil society research.
Metcash also uses EiQ to monitor the statuses of supplier Self-Assessment Questionnaires (SAQs), audit outcomes, and adverse media alerts, which collate incidents detected in media related to suppliers and ESG topics. This near real-time monitoring allows for effective and timely intervention for high-risk areas.
Featured in Metcash’s 2024 Modern Slavery Statement, the company wrote:
LQRA’s EiQ solution allowed us to develop a more comprehensive risk profile by evaluating our risks across a wide range of dimensions and social indices, including child labour, freedom of association, migrant workers, wages and working hours across our sourcing countries globally. This improved approach sets a strong foundation to maximise our impact by tailoring our programs of work and efforts to be much more targeted.
EiQ overview
EiQ uses a robust dataset to generate risk scores for sourcing geographies, commodities and suppliers, as well as using machine learning to scan suppliers for potential ESG violations uncovered in media reports or sanction lists. The industry-leading supply chain intelligence solution supports clients with every step of the supply chain risk management and mitigation process. Through EiQ, businesses have access to in-depth risk analysis, benchmarking and reporting capabilities, adverse media alerts and segmentation solutions to continually monitor their supply chain’s health. This empowers businesses to achieve total supply chain confidence, adhere to due diligence regulations, increase supplier visibility and to maintain supply chain resilience.