Introduction

This is the second Modern Slavery Statement submitted by BFX Furniture.  BFX has elected to publish this statement voluntarily, as informed by the Modern Slavery Act 2018.

The purpose of this statement is to outline the business’ systems for identifying the risk of modern slavery in our operations and supply chain and implementing processes to minimise any risk.

BFX recognise that slavery and human trafficking can occur in many forms including forced labour, child labour, human trafficking, forced marriage and deceptive methods of recruiting labour.

BFX are committed to operating responsibly and maintaining ethical standards across our operations, with a particular focus on risk areas within our supply chain.

Structure

BFX Furniture is an Australian owned and operated vertically integrated manufacturer, supplier and retailer of education and commercial office furniture.

BFX Furniture is a consolidated entity consisting of BFX HO Pty Ltd and the wholly owned subsidiaries it controls, structured as follows:

• BFX HO Pty Ltd trading as BFX Furniture (parent entity)
• Bizfurn Express Australia Pty Ltd
• Accardo Pty Ltd
• BFX Furniture New Zealand Ltd

The group of companies trades under the business name of BFX Furniture, commonly known as BFX.

BFX Furniture employs over 180 people across Australia, with our headquarters, manufacturing and supply facility located in Yandina, Queensland.  BFX maintains showrooms and warehousing in Melbourne and Sydney, and further showrooms in Brisbane, Maroochydore and Townsville.

Operations and supply chains

BFX Furniture is committed to the superior design, production and supply of quality products and services.  We have been in the business for over 30 years and offer an extensive range of innovative products, professional services, experience, and industry knowledge. That is why we are one of Australia’s most trusted education and office furniture suppliers and manufacturers.

With a growing team of 55 Sales and Project Consultants located throughout Australia, a specialist distribution and installation team, a modern manufacturing and supply facility on Queensland’s Sunshine Coast and an international sourcing team, BFX has a valued reputation for reliably delivering state of the art education, government and commercial furniture solutions.

BFX Furniture’s supply chain includes both local and overseas suppliers with whom the business has established, long-standing supply agreements in place.

Our Queensland manufacturing facility produces custom and made to order furniture, sourcing raw materials and componentry from tier one suppliers mostly located in Australia.

Our importing division sources and assembles furniture that requires little or no customisation, with raw materials sourced largely from tier two suppliers located in China, Taiwan and Malaysia, as well as some local Australian suppliers.

Addressing the risk of modern slavery practices

The BFX Furniture board and executive team are committed to ethical procurement and oppose slavery in all its forms.

Policies and risk management processes have been implemented to identify and address the risk of modern slavery in our supply chain.  This includes routine supplier evaluation and supply chain mapping that encompasses a range of environmental and ethical risks, including modern slavery.

Within this supply chain analysis, BFX has identified two areas of risk.  First, a generally low risk of modern slavery in the textile sector, notwithstanding a higher product risk with third tier suppliers where cotton is the primary raw material.  Second, some second-tier suppliers where materials are imported from overseas have a medium geographic and entity risk.

For example, soft furnishings that are upholstered in textiles using cotton as a raw material and produced by second and third tier suppliers located in China where the prevalence of modern slavery per capita has a CCC rating[1].

Due Diligence and Remediation Processes

To date, BFX has had no reported incidents of modern slavery or breaches by its overseas suppliers.

Nevertheless, BFX recognises the inherent risk of slavery and human trafficking within the supply chain and has established internal processes to guide supplier selection and tendering, including:

• Consideration of certain factors before a supplier is awarded a supply contract. For example, the potential supplier’s reputation, ability to supply, integrity, financial strength and compliance with legislation and best practice.
• Ensuring that BFX Furniture do not purchase materials from suppliers that breach the UN Guiding Principles. If any existing suppliers are found to have breached the UN Guiding Principles, BFX Furniture will take immediate steps to reassess those supply arrangements.
• Staff training within BFX’s direct supply chain, together with clear direction in BFX’s Supplier Procurement Policy[2] in which supplier evaluation is conducted prior to engagement of suppliers.
• Existing suppliers are audited in line with BFX’s GECA, EMS and QMS requirements.

Future commitments

Over the next year, BFX Furniture’s focus areas will be:

• Further refining our procurement processes and training our procurement team with best practice initiatives.
• Reviewing identified risk areas in the supply chain and reporting to the BFX board annually.

Brad Henderson
Chief Executive Officer

[1] Walk Free Foundation (2018): The Global Slavery Index 2018: Asia and the Pacific Report. Perth, Australia

[2] BFX Furniture Policies and Procedures BFX001-26.02.19v2