These findings were presented during a public forum on 13 November, following a two-year period from October 2022 to October 2024.
Despite extensive recognition of the negative consequences of poor purchasing practices, such as human rights violations in supply chains, excessive work hours, and inadequate wages, there has been a lack of practical guidance and success stories demonstrating tangible enhancements for companies seeking to make positive changes.
Go deeper with GlobalData
To address this gap, the Responsible Purchasing Practices (RPP) ‘LIC’ was launched in 2022 by leading organisations including the Ethical Trading Initiative, Ethical Trade Norway, Fair Wear, German Partnership for Sustainable Textiles, and Solidaridad.
This collaborative group of 35 apparel brands convened as a peer-learning community every bi-monthly in virtual sessions to learn from manufacturers, experts, and peers while actively experimenting with RPP enhancements and sharing their experiences.
Interactive sessions incorporated manufacturers into practical breakout group discussions, attracting over 60 individuals from brand teams, spanning both commercial and sustainability departments—and upwards of 50 factory managers from major production countries.
Strategic supply chain partners were invited by the brands themselves, while others joined through local manufacturing associations at the behest of the Sustainable Terms of Trade Initiative (STTI), a vital partner of the LIC.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFinancial support for the LIC was provided by STITCH and the Initiative for Global Solidarity (IGS), with implementation overseen by GIZ1. The STTI’s participation received funding from GIZ FABRIC.
Key outcomes from the initiative
– A notable 70% of participating companies have received direct feedback from suppliers on how their purchasing practices affect operations.
– 60% have enhanced bilateral communication with suppliers and are actively engaging in collective problem-solving.
– 55% are working to improve forecasting accuracy and are monitoring internal critical path adherence to enhance it.
An Indian garment manufacturer Animesh said: “We saw this as a good opportunity to raise issues that we are experiencing. The discussions were organised by a neutral third party, with brands we are not in business relationship with, so we could be honest without fear of losing business. If pricing or practices are not fair it will not be sustainable in the long run. I’m sure it will bring improvements, and it will be a win-win for both suppliers and brands.”
Brands have candidly discussed adjustments made to their purchasing protocols as a result of their engagement with the LIC.
–Holzweiler has extended production timelines, establishing lead times based on supplier input and setting a firm cut-off date for changes.
– HEMA has embarked on a journey to solicit supplier feedback and secure executive-level support, forming an interdepartmental team to guide RPP implementation.
– Zeeman has implemented interactive RPP training for buyers and designers and collaborated with suppliers to create a reciprocal ‘Two-way Code of Conduct’.
– Norwegian Concept has increased video interactions with suppliers, fostering an environment for shared challenges and collaborative solutions such as utilising surplus materials in new products.
– Hobbs has streamlined their critical path process, improved order information transparency for suppliers, optimised sampling efficiency, and consolidated fabric orders to minimize waste.
Steps forward
Looking ahead, the Working Group on RPP—which initially developed the ‘Common Framework on Responsible Purchasing Practices’ in 2022—has expanded its membership to include the Fair Labor Association and ET Denmark.
The group is advancing initiatives such as an Accountability Framework on RPP that offers benchmarks and KPIs for company performance assessment.
Currently open for consultation, this framework will serve as a tool in implementing Human Rights Due Diligence legislation. By 2025, they aim to launch an online Resource Hub featuring video content and briefings to assist companies in refining their purchasing practices.
In partnership with STTI, they remain committed to facilitating ongoing collaborative learning between apparel brands and manufacturers.
LIC’s two-year study reveals new lessons on purchasing practices to brands, retailers and manufacturers. Credit: Gorodenkoff/Shutterstock.
sources:
https://www.iafnet.com/2024/12/13/new-lessons-on-purchasing-practices-uncovered-valuable-to-brands-retailers-and-manufacturers-alike/
image: https://www.shutterstock.com/image-photo/shopping-clothing-store-interior-modern-fashionable-2060828318
