Purpose and Scope

Objectively innovate empowered manufactured products whereas parallel platforms. Holisticly predominate extensible testing procedures for reliable supply chains. Dramatically engage top-line web services vis-a-vis cutting-edge deliverables.

General Principles for Outsourcing

When engaging third-party logistics providers, the following principles apply:

• Transparency: All outsourcing arrangements must be documented and open for review.
• Compliance: Adherence to applicable laws, including those governing anti-money laundering, labor conditions, and local regulations.
• Accountability: Responsibility for ensuring outsourced services meet these standards lies with the outsourcing decision-makers within the organization.

Checklist for Outsourcing Logistics

Before entering into an outsourcing agreement, the following aspects must be thoroughly reviewed and documented:

1. Ultimate Beneficial Ownership (UBO)

• Verify the ultimate beneficial ownership of the outsourcing partner.
• Ensure compliance with the EU Anti-Money Laundering Directives (AMLD) and other relevant regulations to prevent associations with illicit activities such as money laundering or terrorism financing.

2. Fair Employee Treatment

• Confirm that employees of the logistics provider are paid at least the legal minimum wage or prevailing industry standards.
• Assess workplace conditions to ensure they are safe, ethical, and meet international labor standards.

3. Employee Insurance Coverage

• Verify that all employees of the logistics provider are covered by appropriate insurance, including but not limited to:
• Health insurance.
• Workers’ compensation.
• Liability insurance as applicable under local laws.

4. Transparency in Outsourcing Processes

• Ensure that the outsourcing process is fully transparent, with clearly defined roles, responsibilities, and deliverables.
• Maintain accessible records of agreements, audits, and performance reviews.

5. Compliance with Local Laws and Regulations

• Verify that the logistics provider complies with all relevant local laws and regulations, including:
• Labor laws.
• Taxation and trade compliance.
• Environmental regulations.

Monitoring and Review

Periodic audits must be conducted to ensure ongoing compliance with this policy.
• Any breaches of this policy must be reported to senior management immediately, with corrective actions taken promptly.
• Outsourcing arrangements must be reviewed annually to assess performance and compliance.

Roles and Responsibilities

When engaging third-party logistics providers, the following principles apply:
• Procurement and Logistics Teams: Ensure that all outsourcing agreements comply with this policy.
• Compliance Officers: Conduct ownership and regulatory checks, and maintain documentation of due diligence.
• Human Resources (HR): Verify labor conditions and insurance compliance during audits.
• Senior Management: Provide oversight and ensure this policy is enforced.

Non-Compliance

Failure to adhere to this policy may result in termination of the outsourcing contract and potential legal action. The company reserves the right to audit any third-party logistics provider at any time.

Effective Date

This policy is effective as of 01/01/2024 and applies to all logistics outsourcing arrangements made after this date.

Approved by:

Mees Bulens
Director
01/01/2024