This white paper outlines the core principles manufacturers, as part of Sustainable Terms of Trade Initiative (STTI), do not want to be violated by companies who buy from them. It also suggests ways that manufacturers can work together to ensure commercial compliance in the apparel-sourcing industry.

The initiative is led by the STAR Network and the International Apparel Federation, (IAF), and the Better Buying Institute, and supported by GIZ FABRIC. It consists of 13 industry organizations from nine countries that face similar purchasing challenges in the garment and textile industries. These associations reached an agreement through consultations on the text of today’s white paper. This is the first time that manufacturers have come together to agree on the text of the white paper.

The whitepaper establishes commercial compliance to be a key principle in the manufacturer’s view on improving purchasing practices. STTI defines it as “purchasing practices that don’t cause obvious and avoidable harm for manufacturers”. The whitepaper lists key recommendations, which define what purchasing practices are considered to be in breach of commercial compliance. Participating associations recognize that these key recommendations severely impair their ability run a profitable business and contribute to stronger, more sustainable supply chains.

The associations have also recommended additional improvements to common purchasing practices, in addition to the main recommendations. The white paper contains a detailed research agenda that aims to find out how purchasing can be improved to meet commercial compliance, while still maintaining flexibility and commercial independence to benefit both buyers and sellers, as well their customers and employees.

person writing on white paper

The initiative’s second phase is expected to begin within the next few weeks. Phase 2 will se\e the emergence of two interconnected, major approaches. This initiative will encourage structural dialogue between retailers, buying brands, and MSIs to discuss the inclusion of commercial compliance into purchasing practices codes. The initiative will also help to create a system that is more transparent regarding commercial compliance.

Leave a Reply

Your email address will not be published. Required fields are marked *