Foster long-term supplier relationships 

Contents

Many of the key building blocks of responsible purchasing become more meaningful and effective when supplier relationships are sustained over the long-term.

  • Communication, trust, and joint problem-solving can be improved, as you find ways of working that suit both parties.
  • The burden on suppliers of audit and administrative tasks—often heavier during onboarding—can be reduced over time.
  • Setting company targets that aim for long-term supplier relationships encourages shared responsibility and joint problem-solving and discourages a “cut-and-run” approach.
  • Suppliers are more likely to invest in decent working conditions and cascade good practices when they have confidence in a long-term relationship.

This case study explores the relationship between schoolwear retailer One+All and supplier New Horizon. It shows how their commitment to the partnership helped both parties navigate challenges during difficult times.

Enable two-way communication

Transparency and clear communication with your suppliers are important for building trust, strengthening partnerships, and enabling your suppliers to manage their business effectively. Ensuring this communication is two-way and enables suppliers to raise concerns without fear of negative consequences is an essential part of responsible purchasing.

In this video: Elisa Shepherd, Senior Advisor for Business Practices at ETI 

Elisa introduces the supplier engagement briefing, shared as part of the LIC, and highlights key considerations:

  • Supplier surveys are a popular way to gather feedback. They can:
    • Enable suppliers to share honest insights.
    • Provide evidence to support internal engagement.
    • Offer a baseline to measure progress.
  • However:
    • Survey fatigue is a real concern.
    • Surveys alone don’t build communication or improve practices.
  • Companies should:
    • Have a plan for analysing results and for next steps.
    • Take action based on feedback.
    • Share aggregated feedback with suppliers.
    • Seek continuous input.
    • Communicate intentions before sending surveys to build understanding and trust.
  • Face-to-face communication is also important. Companies should:
    • Make intentions clear from the outset.
    • Approach discussions with sensitivity.
    • Meet in cross-functional teams.
    • Allow buyers and merchandisers to take a leading role.
    • Focus on practical improvements the brand can make.

 This briefing document — developed with support from manufacturing initiative STTI — shares practical advice on how your teams can engage with suppliers to enable open and honest feedback. 

In this video: manufacturers Animesh, Jerry, and Thiru

Animesh, Jerry, and Thiru share insights on the challenges they face from brands’ purchasing practices. They highlight how unrealistic lead times, unfair pricing, and delayed payments put pressure on their operations and workforce. The manufacturers explain that while some customers expect low prices similar to vertically integrated manufacturers, they fail to consider the higher costs suppliers face when outsourcing processes like dyeing and printing. They also stress the need for open dialogue and collaboration, urging brands to understand local economic conditions and rising costs before setting prices or timelines.