Understanding Supply Chain Levels in the Eligible Facilities List
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In the context of the Responsible Minerals Initiative (RMI), the supply chain is divided into distinct levels, each playing a crucial role in ensuring responsible sourcing practices. Here’s a detailed explanation of these levels:
Upstream:
Upstream refers to the initial stages of the supply chain, encompassing the extraction and initial processing of raw materials. This includes mining companies, traders, and processors who handle raw minerals before they reach smelters and refiners. Upstream actors are vital for implementing responsible sourcing practices from the very beginning of the supply chain.
Pinch Point
A pinch point in the supply chain is a critical juncture where relatively few actors are involved, making it a strategic point for monitoring and controlling the flow of materials. In the context of RMI, smelters and refiners are considered pinch points because they process raw materials into usable forms and have detailed knowledge of the material's origin before it is distributed to downstream users. This makes them key players in ensuring responsible sourcing practices.
Downstream
Downstream refers to the stages of production that occur after the raw materials have been processed. This includes manufacturers, traders, and other entities that use the processed minerals to create final products. Downstream companies are responsible for ensuring that their sourcing practices align with responsible and ethical standards.
Eligible Facilities
Eligible facilities are those that meet the criteria to undergo an RMI assessment based on the applicable RMI standard. These facilities can be found at all points of the supply chain: upstream, pinch point, and downstream. Inclusion on the Eligible Facility list does not necessarily mean that a facility has successfully completed an RMI assessment.