800 words Opinion Editorial Assignment (8am. EST Mar 5th)
Draw on all course materials/speakers/activities so far to write a half to full page essay that in your own words defines what are brand and retailer purchasing practices. Give examples of specific purchasing practices and explain how they impact sustainability.
Purchasing practices are regulations, considerations and activities practiced by buyers and suppliers during any short or long term business deals. Purchasing practices dictate the type of product to be purchased as well as the number of goods bought by consumers.
· It is very common in the fashion industry that oftentimes buyers demand a greater amount of a certain garment at a low price. The brunt of this effort is forced onto the suppliers who are left to deal with meeting the new target goal by working overtime with low wages. This downward pressure inflicted onto suppliers skews the relationships between buyer and seller through creating a false hierarchy of power. Often times there is a perceived hierarchy of power between buyers and suppliers. Buyers may think that they are above suppliers, and think of them as just workers who must do what they say and have it done when they tell them to. This negatively affects the supply chain because it does not consider the importance of the supplier. This can lead to harsher conditions for the suppliers. It is important for the suppliers and the buyers to be at the same level, and equally involved in decisions to avoid negatively impacting the suppliers and their conditions. Buyers need to be aware of the conditions for factory workers specifically when it comes to living wages. It is necessary to give a fair market price to the supplier. For example, There is the survey showed that less than 20% of the customers are willing to factor any labor costs into their pricing discussion with their customers. But, over a third of those of buyers themselves are driving price pressures down on them and often 55% of the suppliers reported selling below their own cost just to keep their competitive advantage for mostly.
What are your opinions about brands and retailers and what they should be expected to do regarding purchasing practices and sustainability? List several ideas about this.
· Visibility and Transparency
· Control over more ethical issues in garment factories
· Buyers should be thinking about what they are asking of their suppliers, what are they expecting from them and are they offering them enough time?
· The factory is expected to be upgraded, and it is hard to pay for wages of work. Company need to earn money for their workers.
· Rise of demand for environment friendly and raw materials
· Sustainable design initiatives, like NIKE
· Include the wages of workers in their prices