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Global suppliers band together to improve purchasing practices
10/02/2021


Industry Associations from Turkey, Indonesia and Morocco join Asian Associations in IAF and STAR Network Initiative on 'Manufacturers Payment and Delivery Terms'


Four major industry associations, the Indonesian Textile Association (API), the Turkish Clothing Manufacturers Association (TCMA), the Istanbul Ready-Made Garments Exporters' Association (IHKIB) and the Moroccan Association of Textile & Clothing Industries (AMITH) are joining the new initiative by Asian manufacturer associations to drive better purchasing practices in the textile and garment industry. The initiative, started by the STAR Network, supported by GIZ FABRIC, the International Apparel Federation (IAF) and the Better Buying Institute, presented their plans at the OECD Forum on Due Diligence in the Garment and Footwear Sector on February 3rd, 2021. This marks a joint global effort led by manufacturers to establish a common position on payment and delivery conditions in the industry.

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

In collaboration with various global stakeholders, the STAR Network, GIZ FABRIC, IAF and Better Buying are creating a safe space for manufacturers to jointly draft a set of minimum expectations and outline recommendations and best practices related to payment and delivery conditions. This includes establishing certain red lines and core principles that they deem essential for fair legitimate business.

“Suppliers from around the world are coming together to offer solutions for strengthening global supply chains,” said Dr. Marsha Dickson, President and Co-Founder of the Better Buying Institute. “Suppliers often have the best ideas for how to overcome challenges and the impacts of brand and retailer purchasing practices on workers and the environment. It’s critical their voices be heard.” Matthijs Crietee, IAF Secretary General adds: “In the end, improvements in purchasing practices are essential to driving industry-wide change.”

Suppliers participating in this effort represent roughly two-thirds of the global market share of global apparel and footwear factory exports.  Participants include members of the STAR Network and IAF, including: VITAS (Vietnam); CNTAC (China); CMAC (Cambodia); MGMA (Myanmar); TMA, PHMA and PTEA (Pakistan); BGMEA and BKMEA (Bangladesh) and now also TCMA and IHKIB (Turkey); API (Indonesia); and AMITH (Morocco). The gamechanger is the collaboration between all of these organisations. As Miran Ali formulated it at the OECD Forum: “The fact that there is fierce competition among manufacturing countries is not an impediment to collaboration.”

The initiative is supported by GIZs regional project FABRIC Asia, built on the input from STAR Network and IAF/ITMF members and managed by IAF with support from Better Buying Institute. The first phase of the project will run until March 31st of this year.

Contacts: Miran Ali | Spokesperson miran@bitopibd.com Mobile +880 171 1565070                                

Matthijs Crietee | Secretariat crietee@iafnet.com Mobile +31 653 93 06 74


About the International Apparel Federation

IAF (www.iafnet.com) is the world’s leading federation for apparel manufacturers, (SME) brands, their associations, and the supporting industry. IAF’s membership now includes apparel associations and companies from more than 40 countries, a membership that directly and indirectly represents over a hundred thousand companies and over 20 million employees. IAF brings its members together to jointly create stronger, smarter and more sustainable supply chains

About the STAR Network

The STAR Network (Sustainable Textile of the Asian Region) is the first inter-Asian network of producer associations. It serves as a platform for dialogue and trust-building to exchange on good practices to make textile and garment production more sustainable and helps members find solutions to the challenges they all face. The purchasing practices initiative has been initiated together with the STAR Network in January (see press release on their website). The STAR Network has been established in 2016 with the support of GIZ FABRIC.

About GIZ FABRIC

FABRIC is a regional project that the German Development Cooperation “Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH” implements on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). FABRIC aims to foster sustainability in the Asian textile and garment industry. It identifies the common interests of key actors – in the factories, ministries, civil society and international brand manufacturers – and brings them together with the aim of developing a shared vision of sustainability and promoting greater cooperation.

About Better Buying™ 

Better Buying Institute reimagines supply chain sustainability, leveraging data to strengthen supplier-buyer relationships and improve purchasing practices that drive profitability while protecting workers and the environment. Better Buying’s programs provide retailers, brands, suppliers, and industry with data-driven insights to help drive lasting improvements in global purchasing practices. More at www.betterbuying.org.