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Transformers Foundation publishes report on ethical business practices

  

A non-profit organization, Transformers Foundation has published its first white paper: ‘Ending Unethical Brand and Retailer Behavior: The Denim Supply Chain Speaks Up.’ As per Sportswear International, the report focuses on the experiences of denim supply chain vendors, their ethical business practices, and expectations from brands, retailers, and importers. The report aims to inspire the entire denim industry to collaborate for developing fair business relationship codes and offer actionable steps and solutions for all stakeholders. The report features in-depth interviews with executives representing a diverse cross-section of the denim supply chain, including laundries, mills, and cut-and-sew factories in 14 countries informs Marzia Lanfranchi, Intelligence Director, Transformers Foundation, and Alden Wicker, Freelance Journalist.

The report surveys 79 leading denim suppliers and jeans factories. It shows how even the leading denim suppliers with the longest relationships with brands faced significant financial damage from brand, retailer and importer behavior: Many in the supply chain decided to cancel and delay orders, postponed payments and extend payment terms, with no possibility for negotiation or discussion.

Customers such as brands, retailers and importers refused to pay for goods even after they were delivered to the retailer or the next supplier in the chain. One brand tried to lengthen payment terms from 45 to 90 days, impose a discount of 15 per cent as well as delay payments into a months-long repayment schedule. The survey also analyzes commonalities between brands that canceled orders and those who came upon the table with solutions. According to it, independent, privately-owned brands, acted more reasonably which could be attributed to their core culture.

 
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