Home / Knowledge / News / Textiles / '60% suppliers not incentivised for code of conduct'
'60% suppliers not incentivised for code of conduct'
May '18
Over 60 per cent of the suppliers are not incentivised for being compliant to buyer codes of conduct, in spite of the incentives being essential for improving purchasing practices, according to a recent report. The report also says that the length of a relationship between buyers and suppliers does not have an impact on the nature of buying practices.

It does not matter whether buyers have had relationships with suppliers for one, five, or even 20 years – suppliers experience generally the same purchasing practices, says the first Better Buying Purchasing Practices Index (BBPPI) report.

The BBPPI finds room for all companies to improve, as well as evidence of good practice. The report notes that the average overall Better Buying score for buyers was 2.5 out of 5 stars (scores were awarded using a 0 to 5-star rating system), meaning that the kinds of practices suppliers face result in significant challenges. In most cases, suppliers were paid on time and at the price agreed upon (4.5 out of 5 stars for payment and terms), while the worst performing category was sourcing and order placement with an average of 0, meaning that suppliers were not rewarded for compliance to their codes of conduct and legal requirements and receive highly inconsistent order volumes from month to month.

Buyers scored better where they had a direct relationship with the suppliers rating them compared with buyers using a third party, which is reflected in overall Better Buying scores, cost and cost negotiation, and management of the purchasing process categories. No significant correlation was found between the length of a buyer-supplier relationship and overall Better Buying scores, which implies that a long-term relationship does not improve purchasing practices, adds the report.

Better Buying uses data submitted anonymously by suppliers through its online platform to rate the purchasing practices of buyers within the apparel, footwear, and household textiles industries globally. It is designed to support industry efforts to improve purchasing practices in supply chains globally.

“Current business practices are unsustainable and need to be overhauled if we expect companies to achieve financial, environmental, and social sustainability goals. Brands and retailers must provide their suppliers with predictable business, sufficient lead times, fair financial deals, and incentives for compliant factories. The BBPPI empowers suppliers to share concerns about poor supply chain management and the issues they face,” said Marsha Dickson, Better Buying co-founder.

‘’The BBPPI supports brands and retailers, multistakeholder initiatives, investors, and other stakeholders looking to improve purchasing practices. Rather than assessing the policies and procedures of buying companies, it instead measures their impact on suppliers using confidential data-driven surveys,” said Doug Cahn, Better Buying co-founder.

Better Buying, supported by C&A Foundation and Humanity United, is an initiative to focus on empowering suppliers and amplifying their voice. The platform tracks and releases performance scores and analysis about purchasing practices, allowing trends to be uncovered. The benchmark report summarizes the results and key findings from the first cycle of BBPPI data collection carried out in Q4 2017. It includes ratings from 156 suppliers across 24 countries and measures the performance of 65 buyers. Buyer performance is measured against seven key categories of purchasing practices: planning and forecasting, design and development, cost and cost negotiation, sourcing and order placement, payment and terms, management of the purchasing process, and CSR harmonisation. (KD)

Fibre2Fashion News Desk – India

Must ReadView All

New US alliance to promote postal package delivery service

Textiles | On 15th Aug 2018

New US alliance to promote postal package delivery service

A group of US retailing, e-commerce and logistics firms recently...

Courtesy: Industriall Union

Apparel/Garments | On 15th Aug 2018

IndustriALL-Esprit agreement to improve workers' rights

IndustriALL Global Union recently signed a global framework agreement ...

Indian minister orders fresh consultations on e-com policy

Textiles | On 15th Aug 2018

Indian minister orders fresh consultations on e-com policy

Indian commerce and industry minister Suresh Prabhu has asked for...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Carolin Russ

Weko, Weitmann &amp; Konrad GmbH &amp; Co KG, based in south Germany, is...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2018

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

news category

Related Categories:

Advanced Search