Launched to an audience of senior purchasing professionals from both the public and private sectors, the report: Win Win: Achieving Sustainable Procurement with the Developing World, guides buyers to better working relationships with developing countries and unfamiliar cultures.
Helping to minimise business risks and reputational damage, the report examines the many pitfalls facing procurement professionals when buying from the developing world – such as not being able to assume that laws are enforced, and the difficulties of communicating across cultures.
The report also sets out a framework of guidance to help the purchasers in the UK ‘buy better’ from the developing world using economic, social and environmental performance as key success indicators.
Participants at the launch were surprised to learn that debt bondage of workers still exists in many international supply chains, meaning that slavery continues today.
Kariwala, a supplier of workwear and eco-friendly bags to M&S, Tesco and ASDA, presented the business benefits of improving working conditions and explained they were surprised to find that as a result of implementing the ‘corrective actions’ identified by an audit the business realised net benefits despite having to increase labour expenditure by 4%. Productivity went up by 10% and the business experienced a net reduction in costs by 6%.
During the discussion, Katharine Kirk, high-street retailer Primark’s Ethical Trade Director, confirmed that they have found that suppliers with good working conditions were also the better business partners, delivering products to agreed specifications and on time.
David Noble, Chief Executive at CIPS said “The aim of the game here is for highly efficient supply chains, helping buyers to overcome some of the major challenges when working with the developing world. Getting it right can mean better quality, better productivity and more trusting relationships which provides a platform for openness, discussion and improvement and innovation. Responsible purchasing from developing countries is increasingly an economic and reputational imperative and is key to a successful business agenda.”
Report co-author, Fiona Gooch of Traidcraft, said, “In recent years, over-reliance on audits of overseas suppliers has diverted attention away from on-going improvements and, in the worst cases, stimulated dishonest supplier reactions like keeping double books and coaching workers to respond to auditors’ questions.
“The report aims to help the buyer create strong and sustainable supplier relationships across the globe by showing how to integrate unique aspects of developing world suppliers into a company’s regular purchasing activities – helping both trading partners address the issues and achieve positive business results.
“It’s encouraging to see the high level of interest and enthusiasm from the procurement profession in creating positive, sustainable relationships with developing world suppliers.”
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Notes to editors:
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The report: Win Win: Achieving Sustainable Procurement with the Developing World was produced jointly by Traidcraft and the Chartered Institute of Purchasing and Supply as part of the Responsible Purchasing initiative.
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The report is available online at www.traidcraft.org.uk/policyreports
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Further resources ‘Buying Game’ and ‘Taking the Lead’ are available from www.cips.org and www.responsible-purchasing.org
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For further information about the Chartered Institute of Purchasing & Supply please contact: Liz Lees, Head of Public Relations, on 01780 761575 or +44 (0)7917648564 or email liz.lees@cips.org or visit www.cips.org
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For more information about Traidcraft contact Melissa Duncan on +44 (0)7831 576103 or email melissad@traidcraft.co.uk or visit www.traidcraft.co.uk
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Report authors Helen Alder (CIPS) and Fiona Gooch (Traidcraft) are available for comment.
