Global suppliers band in concert to improve purchasing practices

Sector Associations from Turkey, Indonesia and Morocco sign up for Asian Associations in IAF and Superstar Network Initiative on 'Manufacturers Payment and Delivery Terms'

Four main industry associations, the Indonesian Textile Association (API), the Turkish Clothing Producers Association (TCMA), the Istanbul Ready-Made Garments Exporters' Association (IHKIB) and the Moroccan Association of Textile & Garments Industries (AMITH) are joining the new initiative by Asian supplier associations to drive better purchasing practices in the textile and garment industry. The initiative, began by the Superstar Network, backed by GIZ Cloth, the International Clothing Federation (IAF) and the Better Buying Institute, provided their ideas at the OECD Discussion board on HOMEWORK in the Garment and Boots Sector on February 3rd, 2021. This marks a joint global work led by makers to establish a common situation on repayment and delivery circumstances in the industry.

The initiative on 'Producers Payment and Delivery Terms', which includes been officially launched on January 12th, comes as the apparel and footwear industry works to better hook up supply to demand, reduce waste, and improve profitability, recognizing that buyers and suppliers must strengthen their relationships to both support pandemic recovery and plan upcoming supply chain disruptions As Miran Ali, Director at BGMEA and Celebrity Network spokesperson, said at the OECD Forum: “Following the pandemic, there should be a complete reset of the buyer-supplier relationship; we have to not revert back to the norm.”

In collaboration with numerous global stakeholders, the STAR Network, GIZ FABRIC, IAF and the Better Buying Institute are creating a secure space for companies to jointly draft a set of bare minimum expectations and outline advice and best practices linked to payment and delivery conditions. This consists of establishing certain reddish lines and core principles that they deem essential for fair legitimate business.

“Suppliers from all over the world are approaching together to offer alternatives for strengthening global source chains,” said Dr. Marsha Dickson, President and Co-Founder of the Better Choosing Institute. “Suppliers frequently have the very best ideas for how exactly to overcome challenges and the impacts of brand and retailer purchasing methods on workers and the surroundings. It’s significant their voices be listened to.” Matthijs Crietee, IAF Secretary Standard adds “Ultimately, improvements in purchasing procedures are crucial to driving industry-wide change.”

“Suppliers taking part in this work represent roughly two-thirds of the global marketplace share of global outfits and shoes or boots factory exports, which represents unprecedented collaboration in the industry. Participants include participants of the Superstar Network and IAF, including: Vitas (Vietnam); CNTAC (China); GMAC (Cambodia); MGMA (Myanmar); TMA, PHMA and PTEA (Pakistan); BGMEA and BKMEA (Bangladesh); TCMA (Turkey); API (Indonesia); and AMITH (Morocco). “The actual fact that there surely is fierce competition among manufacturing countries isn't an impediment to collaboration,” Miran Ali noted.

The initiative is supported by GIZ’s regional project FABRIC Asia, built on the input from Celebrity Network and IAF/ITMF customers and managed by IAF with support from Better Shopping for Institute. The first stage of the job will run until March 31st of the year.