The best outcomes are usually found by working in partnership to understand challenges, make use of each other’s expertise, and explore viable options.
In this next video: Michelle Tjokrosaputro, president of an Indonesian garment manufacturer
Michelle shares her experience of difficult dynamics and unfair practices from purchasing companies. She highlights:
- Losing clients is difficult, and this often happens because low prices are the buyer’s top priority.
- Production demands are often increased with very short lead times, which buyers refuse to negotiate.
- Suppliers are held strictly accountable for excessive working hours, despite the pressure to meet unrealistic deadlines.
Michelle describes a case where 50% of an order was rejected, even though the buyer could only find fault in one out of ten of the rejected items. The same quality control checker later attempted to buy the rejected items at just $0.50 apiece. Michelle describes the impact this rejection had on the morale and confidence of the workforce. She highlights the importance of communication in commercial partnerships, to understand each other’s concerns and challenges and find solutions.
In this video: Valéa Vadaleau, co-founder of Kybele
Valéa discusses how equal partnerships between purchasing companies and suppliers can create value and build resilience across the supply chain. Drawing on her experience as a buyer, Valéa shares practical advice and two real-world scenarios where collaboration helped avoid negative impacts.
Scenario 1:
- A jacket order was shifted from air to sea shipment to reduce environmental impact.
- This was made possible because the supplier produced during low season, balancing factory capacity.
- The later delivery date created cash flow risks for the supplier under the agreed payment terms.
- Good communication led to the purchasing company bringing payment forward, enabling workers to be paid on time.
- Trust and a long-term relationship enabled the buyer to break standard procedure and pay before goods were checked.
- This action strengthened trust and improved the partnership going forward.
Scenario 2:
- A shorts order from Morocco was rejected by the QC warehouse in Germany due to seam damage from the washing process.
- Valéa worked with the supplier to find a mutually beneficial solution.
- Instead of returning the items to Morocco—causing delays and increasing environmental impact—they were reworked locally in Germany.
- This approach saved costs and resolved the issue faster.
- Working together led to a better outcome for both parties.
In this video: Brita Beresford, production manager at Norwegian Concept, and Duan Gunaghui (Jerry), team leader at Luoyang Jumei Business
Brita and Jerry share their experience and tips for joint problem solving.
Partnership and joint problem solving
As described by Brita and Jerry in the above video, this case study highlights some of the key improvements made by Norwegian Concept to promote better partnerships with their suppliers.