Consumer Packaged Goods

Third Party Risk Management and Compliance Requirements for Consumer Packaged Goods Companies

Consumer packaged goods companies have complex third party networks that include geographically dispersed vendors/ suppliers, transporters, third-party manufacturers, subcontractors, packers, stockists, and distributors. In order to protect their brand integrity and comply with multiple regulatory drivers, CPG companies are expected to ensure that their third party network is adhering to ABAC, health and safety, environmental, product safety, human rights and labor laws.

The complexity and scale of their networks make compliance and risk management challenging for many CPG companies, who must often manage 100,000’s of third party relationships. Risk is often ‘hidden’ in the supply chain, within 2nd tier or subcontractor organizations.

The Aravo Risk and Compliance Solution for Consumer Packaged Goods Companies

The Aravo solution allows leading CPG companies to apply consistent and formalized risk management processes throughout the relationship life cycle of their third parties. It supports a risk-based approach that inventories and assesses the risk of all third parties, with additional focus on third parties that are based in high risk countries, support business-critical activities, and other high-risk criteria.  Offering best practice workflows and assessment standards, it enables CPG companies to ensure that third party relationships are maintained in compliance with regulatory requirements and the company’s overall corporate responsibility initiatives, including:

  • Questionnaires and processes for tracking third party information, policies and procedures.
  • Visualizations that identify areas of focus and enable appropriate risk mitigation and/or due diligence activities.
  • Integration with marketing-leading EcoVadis sustainability ratings to incorporate into overall Risk Management and Mitigation processes.

Aravo Risk & Compliance Solution Benefits for Consumer Packaged Goods Companies

  • Streamline and harmonize data and processes across the third party and supply network for improved transparency, flexibility and agility
  • Eliminate risk silos and deliver a centralized ‘version of the truth’ for the extended enterprise
  • Increase third party transparency through Tier 1, 2 and beyond
  • Reduce complexity and third party administration costs
  • Expand third party networks and enter into new markets with confidence
  • Accelerate time to market
  • Reduce brand risk
  • Improve oversight with an always accessible audit trail
  • Expand to new use-cases as you harness the power of the flexible Aravo Enterprise platform

Regulations and Standards that impact the Consumer Packaged Goods industry

Human Rights
Title VII of the Civil Rights Act of 1964

Prohibits employers from discriminating on the basis of race, national origin, gender, or religion.

Wages and the Fair Labor Standards Act (FLSA)

FLSA establishes minimum wage, overtime pay, record keeping, and youth employment standards.

Dodd-Frank Section 1502

Defines restrictions on the mining, transporting and commerce of Conflict Minerals, amongst many others regulations.

Health & Safety
OHFAS 18001

The international specification for occupational health and safety management systems.

UK Health & Safety at Work Act of 1974

Provides for securing the health, safety and welfare of persons at work.


A definition of best practices for “the Registration, Evaluation, Authorization, and restriction of Chemicals”.


Requires employers, the self-employed, and those in control of premises to report specified workplace incidents.

ISO 14001:2015

Sets out the criteria for an environmental management system applicable to any industry.

Clean Air Act of 1963

Designates what is a hazardous air pollutant, how to dispose of them and what are the penalties for non-compliance with the Environmental Protection Agency’s Standards.

OSHA Occupational Chemical Database

Lists chemical compounds that are restricted for health and safety concerns.

U.S. Foreign Corrupt Practices Act (FCPA)

Forbids bribing foreign officials and mandates transparent accounting practices.

UK Bribery Act

Covers British criminal laws related to bribery and establishes penalties including imprisonment, fines, and confiscation of property.