Home / Knowledge / News / Apparel/Garments / Puma sets up financing programme for suppliers with IFC
Puma sets up financing programme for suppliers with IFC
16
Apr '16
Courtesy: Puma
Courtesy: Puma
German sports goods and apparel maker Puma and the International Finance Corporation (IFC), a member of the World Bank Group, have entered into a partnership to provide financing to Puma's suppliers in emerging markets. This innovative programme, which is the first a European brand signs with IFC, will offer financial incentives for suppliers to improve environmental, health and safety and social standards, Puma has announced.

In its first phase, the programme will be rolled out in Bangladesh, Cambodia, China, Indonesia, Pakistan and Vietnam.

IFC will adopt a financing structure with tiered pricing of short-term working capital, offering lower costs for those suppliers that achieve a high score in Puma's supplier rating, that is applied after Puma has monitored a supplier's adherence to the company's social and environmental standards through an auditing process.

“This financing programme enables our suppliers to leverage their relationship with us and benefit from Puma's strong reputation and financial position," said Lars Soerensen, Puma's Chief Operating Officer. "This is the first programme in our company that rewards a supplier's rating within Puma's environmental and sustainability programme through related fees."

"IFC is the perfect partner for us to implement this program”, said Frank Wächter, Senior Head of Treasury & Insurance at Puma. "They have a proven track record in designing such programmes and implementing them in countries in Asia, where many banks are not as active.”

Sergio Pimenta, IFC Director of Manufacturing, Agribusiness and Services said: “This agreement with Puma advances IFC's efforts to encourage small and medium companies such as Puma's suppliers to improve environmental and social sustainability while achieving strong financial results”.

Ball Planet, a Chinese supplier of soccer balls with production facilities in China, is the first supplier to join the programme. “We are keen to start using this financing facility, since access to affordable financing is always a challenge," Ken Hong, General Manager of Ball Planet Industrial Ltd., said: "This innovative programme will not only help us improve our cash flow, but will also provide us with a financial incentive to improve our environmental, health and safety and social standards, which will ultimately reduce our operating costs and enhance our performance.” Ball Planet has been a business partner of Puma since 2010.

Puma and IFC launched this initiative in partnership with GT Nexus, a cloud-based business network and platform for global trade and supply chain management. The platform enables participants to operate against a core, real-time set of information across multiple supply chain functions. This optimizes the flow of goods, funds and trade information.


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search