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Monday, 21 November 2022 17:33

IAF wants equitable distribution of risk and reward

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The International Apparel Federation (IAF) is aiming at a fairer distribution of risk and reward between buyers and producers.

IAF is a global network uniting small and medium manufacurers, brands, manufacturers and their associations. When western brands collapsed during the Covid pandemic, one of the first things they did was to cancel already completed orders.As buyers cancelled orders, suppliers were left in a lurch. They had to sink or swim. The IAFhas identified the need to urgently rebuild trust and has begun emphasising on supply chain issues guided by the urgency of the need for industry transition in a changed world. IAF believes the supply chain, to function well, literally and figuratively speaking, needs a new contract and needs to operate with a greater sense of equity.

So IAF has teamed up with the Star Network of industry associations, GIZ, Better Buying and the OECD in a project in which around ten associations will build their recommendations for payment and delivery terms. Even though intentions are often good, purchasing practices are more an offer by buyers. The financial flows fuelling the supply chain including a fairer distribution of risk and reward are a major part of this new contract and IAF is developing both guidance and concrete services to its members in this area. Another way IAF is preparing for the new world is by adapting to the policies and core values which will gain significance but will come at a steep cost. IAF feels that as the essence to the greening of the industry is a supply-chain-wide collaborative approach, pledges to reduce CO2 emissions are important but not sufficient and that costs and the rewards of transformation need to be shared in the supply chain.

So the financial sector can bridge gaps, education across the supply chain will help and consumers can drive change though they need to be able to base their buying decisions on clear and trustworthy green claims. The organisation notes circularity – the practice of encouraging reuse, recycling, or sustainability in consumption, manufacturing – as the most effective method to reduce the pressure on climate exerted by the apparel industry.At the same time, IAF will focus on bringing the manufacturers' voice more clearly into the global industry infrastructure that is being built to reduce apparel's global environmental footprint.

Other priorities

The IAF's other priorities are working on institutional infrastructure, education and training, digitisation and transparency. It believes the apparel industry needs a better global, institutional industry infrastructure, promoting more inclusivity and that this can be done by reducing audit and standard fatigue.IAF and the International Textile Manufacturers Federation have taken up a project to do this.In line with its aim to build a stronger global institutional infrastructure for the industry, IAF will also work to enhance global coordination of industry education.

Global coordination implies alignment of priorities, quality and efforts to reduce the chances of overlap. IAF is working with several multilateral organisations to organise a more structured transfer of knowledge aimed particularly at industry associations.The IAF will also stress on all-out, all-forces-joined drive for digitization and has emphasised on the need to accelerate efforts to increase transparency of its supply chains since transparency is important to create more responsive supply chains, to improve sustainability and is needed to comply with demands of civil society and government.

IAF's mission is to unite all stakeholders of the fashion and apparel industry, including brands, retailers, manufacturers, suppliers and country associations from around the world to enable and promote smarter, stronger, more sustainable supply chains.Buyers’ conduct at the start of the pandemic often was the exact opposite of collaboration and the breach of trust created caused damage to supply chains that needs to be repaired. IAF has formulated a strategy for strengthening supply chains that will help repair this damage, prevent new damage and contribute to the creation of a stronger, smarter and more sustainable industry.