Improving purchasing practices by (self-)assessment
Insights from feedback of buyers and suppliers in the joint report from the Textiles Partnership and AGT.
Once again, members of the Partnership for Sustainable Textiles and signatories of the Dutch Agreement on Sustainable Garments and Textile (AGT) were invitet to complete the purchasing practice self-assessment (PPSA) and obtain feedback from their suppliers via a purchasing practices assessment (PPA). A total of 48 PST and AGT companies participated. The results are now published by AGT and the Textiles Partnership in a joint report.Download).
For the first time in 2020, companies used the Purchasing Practices Self-Assessment (PPSA) ( seeResults). This year, there was an additional questionnaire ( Purchasing Practices Assessment (PPA) ) for suppliers to give feedback to their business partners.
Both questionnaires were developed by the initiative ACT (Action, Collaboration, Transformation), with which the Textiles Partnership cooperates.
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.