Responsible Purchasing
Responsible Purchasing
Our Policy
Our purchasing policy has been established to meet and exceed the standards of the ACT Global Purchasing Practices and Commitments.
Our commitment to ethical purchasing has a positive effect at every level of our supply chain. It is a policy built on trust, honesty, fairness and shared responsibility. All involved parties are mutually committed to supporting wage increases, making sustainable production decisions, shared financial responsibility, and ultimately fostering change for people and the planet.
OUR COMMITMENT
1. WE COMMIT TO LONG TERM EQUAL PARTNERSHIPS
We and our suppliers respect each other as equal business partners, we engage in respectful sourcing dialogue; and pursue win-win situations, with a shared responsibility to improve working conditions.
This includes:
- Partnering with business who share our values and commitment to sustainability as outlined in our Code of Conduct (COC).
- Building long-term secure sourcing relationships.
- Reducing the churn of suppliers.
- Formulating agreements on mutual responsibilities for responsible purchasing.
- Only using force majeure responsibly.
- Improving communication.
- Achieving partnership in problem solving.
- Employing responsible exit strategies.
2. WE COMMIT TO SUSTAINABLE COSTING
We ensure the costing procedures and levels of the purchasing company reflect and support wage increases and sustainable production. Prices cover all costs of compliant production and allow for a reasonable and maintained supplier profit margin.
This includes:
- We commit that purchasing prices include wages as itemised costs.
- Developing mechanisms to ensure costing allows for all labor costs and increases when labor costs increase (through national minimum wages and/or collective bargaining).
- Implementing a costing strategy that supports increased wages towards a living wage.
3. WE COMMIT TO BETTER PLANNING AND FORECASTING
We are committed to working collaboratively with our suppliers when planning our Critical Path and production.
This includes:
- Reducing the number of samples and by being clear and decisive.
- Providing accurate technical packs.
- Increasing forecasting accuracy and providing dates and frequency of any adjustment to forecasts.
- Balancing orders through peaks and troughs.
- Tracking reasons for delay in the critical path.
- Taking responsibility for delays caused by missed deadlines on our part.
- Accepting delivery delays resulting from amendments.
- Allowing sufficient lead-times to stop workers having to do overtime or outsource to subcontractors.
4. WE COMMIT TO FAIR TERMS OF PAYMENT
We and our suppliers agree on fair and transparent payment terms that include all relevant information about the payment procedure and do not place a disproportionate burden on one party. Contractual obligations are honored at all times. Payments are made in full and on time.
This includes:
- Payments made in line with agreed timeframe.
- Ensuring the amount paid to suppliers is in line with the payment terms agreed and retrospective changes may only be made where it is mutually agreed and is not to the detriment of the supplier.
- No imposing penalties that fall outside the terms of the purchase agreement.
- Ensure that the purchase agreement clearly references financial consequences for non-performance.
5. WE COMMIT TO PRACTICING RESPONSIBLE EXIT STRATEGIES
This includes:
- Consider reasons for and consequences of exiting.
- Allow appropriate phase out time.
- Seek to avoid negative impact on workers.
- Take reasonable measures to assure that all wages and legally entitled severance payments are made.