Ensure a fair distribution of risk and accountability

Fluctuating consumer demand and volatile markets are common within the garment industry. Planning production in this context carries inherent commercial risks. Responsible production planning ensures these risks are distributed fairly, rather than being disproportionately borne by suppliers. 

Fierce industry competition and imbalanced power dynamics can pressure suppliers into accepting unreasonable timelines, costs and risks—conditions that undermine decent working environments. You need to work collaboratively with your suppliers to understand the realities of production and ensure your company’s ways of working support good working conditions. This also enables your suppliers to cascade good practice to other tiers in the supply chain. 

In this video: Kim van der Weerd, former general manager of a garment manufacturer in Cambodia

Kim outlines material and capacity planning processes. She explains how short lead times, used by brands and retailers to minimise their own risk, increase risk for suppliers—forcing them to hold excessive inventory, creating uncertainty over workforce employment, and reducing overall efficiency. 

Kim urges brands and retailers to:

• Share and update information about market demandand ordering plans as soon as it becomes available, helping suppliers anticipate needs for factory capacity and materials.
• Balance risk across the supply chain, rather than pushing the burden of changing consumer demand onto suppliers.