On 29 October, Better Buying Institute released the Better Buying 2020 Index Report. The annual report aims at assessing the impact of the purchasing practices of 22 brands and retailers active in the apparel, footwear and household textile sector by analysing the relevant data provided by more than 2,000 global suppliers. The report mentions several amfori members.
The report identifies three key criteria of purchasing practices, including planning and forecasting, cost and cost negotiation, and payment and terms, and assesses their impact on profitability, business relationships and working conditions.
Better Buying Institute found that several brands made significant steps forward thanks to improvements in planning and forecasting, which enhance production efficiency, reduce financial pressure on manufactures and foster workforce stability. Similar progresses have also been made in other areas.
The report concludes that:
- Companies can improve their planning and forecasting, which is highly beneficial for suppliers since it allows them to avoid additional cost and provide stable employment
- When the orders are priced to cover all costs of production, companies can have a real impact in terms of living/decent wages
- Data plays a pivotal role in highlighting underlying issues in supply chains and helping raise awareness of the fact that buyers’ purchasing practices may contribute to human rights abuses in supply chains
In April, amfori published Guidelines for Responsible Purchasing Practices to urge companies to continue conducting due diligence and carry out responsible business practices even in times of COVID-19. The guidance seeks to support companies in their efforts to ensure their supply chains respect human rights, uphold core labour standards and protect the environment.
In July 2020, Marsha Dickson, President and Co-Founder of Better Buying, joined amfori’s Stakeholder Advisory Council. Better Buying and amfori will explore a closer collaboration on the topic of responsible purchasing practices in 2021.
If you have questions about Responsible Purchasing Practices, please get in touch via firstname.lastname@example.org.