Improving purchasing practices by (self-)assessment

The PPA and PPSA data provide valuable insights on positive developments, but also on challenges that remain, including responsible exit strategies, cost breakdowns, scorecards and incentive systems, and training and awareness of responsible purchasing practices.

Conventional purchasing practices often include aggressive price negotiations, as well as late orders, last-minute changes, or delayed payments. These practices put intense pressure on suppliers and, in most cases, result in poor working conditions and low wages for workers.

In the PPA, suppliers confirmed that responsible purchasing practices can contribute significantly to living wages. They saw price negotiations, price offers and contract awards as particularly important in this regard.

As with the previous survey, it is now clear that purchasing practices are crucial for decent working conditions and living wages. The results make it clear: The foundation has been laid, but much remains to be done.

PST and AGT therefore call upon companies to engage in responsible purchasing practices and living wages and to make use of the industry knowledge, tools and support available.

The two initiatives presented the aggregated results of the PPSA and PPA and the resulting opportunities and recommendations at a webinar on December 14. On this occasion, some companies also reported on their learnings and measures to improve their purchasing practices.