After kicking off their cooperation in 2021 as the first supplier led initiative on purchasing practices, STTI has just celebrated their 10^th working group meeting in Guangdong China. What many deemed a short lived response to the poor purchasing practices during COVID, has thus turned into a long standing cooperation, still uniting manufacturers globally around responsible purchasing practices.

When the initiative kicked off their cooperation with STTI’s white paper, they clearly communicated their hopes for the future of the sector. While the COVID pandemic that shed light on the poor purchasing practices has ended, new pressures on purchasing practices arise. The Russian-Ukrainian war and its effects on energy prices, inflation and recession in many consumer markets and high raw material costs, put persistent pressure on fair and responsible purchasing practices.

Chaired by STTI Member CNTAC, STTI discussed their individual responses to these pressures and reconfirmed their commitment to pushing for systemic change as a group.

After 2 years of commitment STTI is being globally recognized as the only manufacturer led initiative on purchasing practices and has strengthened its cooperation with a number of brands and Multi-Stakeholder groups, collecting buy in from relevant stakeholders for an agenda for change. While some sustainability challenges require national or even factory specific approaches, purchasing practices require systemic change. To foster an upward spiral instead of a vicious downward cycle, STTI will remain committed to seek conversations with other stakeholders as a group.

One issue that currently remains unsolved is a lack of accountability when it comes to commitments around better purchasing practices. STTI thus adds trust-building and transparency with the sector on purchasing practices commitments to their list of priorities for the near future.

Another priority concerns changes in the legislative landscape. The group remains alert to policy changes that acknowledge responsible purchasing practices as a key element of due diligence, ultimately allowing manufacturers to run socially, environmentally and economically sustainable businesses. STTI thus decided to next meet at the OECD Garment and Textile Forum in late February 2024. The group will seek exchange with policy makers, buyers and other stakeholders alike.

The initiative also celebrated receiving the International Textile Manufacturing Federation’s (ITMF) award for international cooperation on responsible purchasing practices on 5^th of November. This event acknowledges the attention needed for a unified approach to improve responsible purchasing practices. STTI will stay committed to this objective or as STTI Member and IAF President Cem Altan said: “Manufacturers can’t act green, when in the red”.

For further questions please contact: 

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070  

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74 

— 

The Sustainable Terms of Trade initiative, led by the STAR Network, the International Apparel Federation (IAF) and the Better Buying Institute and supported by GIZ FABRIC consists of 13 industry associations from 10 countries facing similar challenges regarding purchasing practices in the textile and garment industry. These are: API, Indonesia; VITAS, Vietnam; CNTAC, China; TAFTAC, Cambodia; MGMA, Myanmar; BGMEA and BKMEA, Bangladesh; AEPC, India; PHMA, PTEA, TMA, Pakistan; TCMA, Turkey and AMITH, Morocco.

STTI spokesperson and Vice President BGMEA Miran Ali called for a globally standardised approach to due diligence at the prestigious Global Fashion Summit last week.

Mr. Ali was speaking at a panel focusing on the upcoming due diligence legislation, led by OECD due diligence head Tyler Gillard, alongsideMaxine Bedat, founder and director of New Standard Institute and author of the book “Unraveled: The Life and Death of a Garment” and Sebastian Herold, deputy head of division sustainable textile supply chains and sustainable consumption at the German Federal Ministry for Economic Cooperation and Development (BMZ).

He made clear that for manufacturers it is crucial to have a globally standardised approach and not fragmented regulation in different countries, regions and states. He went on to say that “The terms of trade have changed. The Sustainable Terms of Trade Initiative (STTI) was created to give the supply chain a voice. If we are going to make change as an industry there needs to be a discussion on equal terms.” Maxine Bedat backed Miran Ali’s pledge and stated that “We have to shift away from passing the buck to manufacturers. There is a tendency of brands to cascade requirements up into the supply chain, but this is old fashioned.” She called for approaching legislation and complianceto be two way streets.

This year’s Global Fashion Summit was clearly focused on industry wide alliances and the STTI alliance among manufacturers was often referred to. At the same time, the summit also laid bare that despite the steps forward taken by the formation of alliances, much of the heavy lifting is still be done.

The STTI and its partners are working hard on building the necessary infrastructure to create structural improvement of purchasing practices, working on the development of model contract clauses with Rutgers University, researching options for arbitration with GIZ,  creating collaborations with Multi Stakeholder Initiatives building purchasing practices codes, and developing a long-term mechanism for measuring progress on commercial compliance by brands and retailers, among other activities.

For further questions please contact:

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070

Fatima-Zohra Alaoui | STTI  Deputy Spokesperson | f.alaoui@amith.org.ma

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74

—

The Sustainable Terms of Trade initiative, led by the STAR Network, the International Apparel Federation (IAF) and the Better Buying Institute and supported by GIZ FABRIC consists of 14 industry associations from 11 countries facing similar challenges regarding purchasing practices in the textile and garment industry. These are: API, Indonesia; VITAS, Vietnam; CNTAC, China; GMAC, Cambodia; MGMA, Myanmar; BGMEA and BKMEA, Bangladesh; AEPC, India; PHMA, PTEA, TMA, Pakistan; TCMA, Turkey; ECAHT, Egypt and AMITH, Morocco.

The Sustainable Terms of Trade Initiative (STTI) held its first bi-annual in-person meeting on Monday March 14th in Istanbul, Turkey and announces spokespersons.

The event was hosted by IHKIB, one of the now 15 associations participating in STTI, and planned to coincide with the IAF-IHKIB seminar “Greening the Apparel Industry”, as well as the vibrant Istanbul Fashion Week, which STTI associations attending the event were also able to attend.

The STTI meeting consisted of an external component where STTI exchanged ideas and insights with key stakeholders including global retailers, and an internal part that focussed on concrete planning for each of three themes that are currently in place to drive the implementation of ‘commercial compliance’ in the apparel industry. These included:

• STTI’s outreach to MSIs and brands and retailers to eventually establish plans of action on commercial compliance and hence the improvement of purchasing practices;
• The work on transparency on commercial compliance, which is led by project partner Better Buying and is aimed at developing a permanent survey mechanism for measuring progress by brands and retailers, as reported by manufacurers; and
• ‘Supplier solutions’, which covers practical instruments that manufacturers may use to help improve the commercial compliance of their clients, including supplier contract clauses, training, and a complaints mechanism.

It was hugely valuable to be able to meet again in person, as a sector, to address the many challenges the global apparel industry faces. The meeting was characterized by lively discussions, illuminating country perspectives from the manufacturer associations, and a palpable sense of clarity and purpose.

A recurring theme from the manufacturers in attendance was ‘reciprocity’. Sanem Dikmen, Co-Chair of TCMA, comments: “To achieve real impact in purchasing practises we finally need reciprocity in buyer-supplier relations and agreements. Only then can we move from win-lose to win-win.”

STTI also decided to strengthen its representation in upcoming in-person industry events. Next to STTI spokesperson Miran Ali, Vice President at BGMEA, now Fatima-Zohra Alaoui, Director General of the Moroccan Apparel and Textiles Association AMITH, is STTI’s deputy spokesperson.

For further questions please contact:

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070

Fatima-Zohra Alaoui | STTI  Deputy Spokesperson | f.alaoui@amith.org.ma

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74

—

The Sustainable Terms of Trade initiative, led by the STAR Network, the International Apparel Federation (IAF) and the Better Buying Institute and supported by GIZ FABRIC consists of 15 industry associations from 11 countries facing similar challenges regarding purchasing practices in the textile and garment industry. These are: API, Indonesia; VITAS, Vietnam; CNTAC, China; GMAC, Cambodia; MGMA, Myanmar; BGMEA and BKMEA, Bangladesh; AEPC, India; PHMA, PTEA, TMA, Pakistan; IHKIB and TCMA, Turkey; ECAHT, Egypt and AMITH, Morocco.

STTI welcomes two new members and now covers 11 manufacturing countries. Furthermore, the Initiative kicks-off their negotiations with talks with organisations representing brands and retailers.

The governing body of the STTI held its fifth global working group meeting held on Thursday January 27th, welcoming two new participants. From India, the Apparel Export Promotion Council (AEPC) joined and was represented by its chairman, Mr. Naren Goenka. From Egypt, new participant ECAHT was represented by its executive director Mr. Hany Kadah. As a result, now STTI brings together apparel industry associations from 11 countries which now include Indonesia, China, Vietnam, Cambodia, Myanmar, Bangladesh, India, Pakistan, Turkey, Egypt and Morocco.

Uniting behind the common goal of improving commercial compliance the initiative has published their white paper in September 2021. Now, driven by the push for application in the industry the global working group formally started talks with three major, globally operating organisations representing brands and retailers and that have the improvement of purchasing practices high on their agendas. These are the SAC, ACT and the Common Framework for Responsible Purchasing Practices (CFfRPP). It is STTI’s goal to make plans of action with these organizations on commercial compliance, or in other words, agree on practical steps to improve purchasing practices between the members of the organization and the members of STTI. The necessity for this remains without question. Participants questioned “how we would contribute to the fairness of the industry if we don’t have fair purchasing practices to begin with.”

Out of this need it became clear that these groups aim at tangible improvements and prioritise the topic already.  The STTI is ensuring that manufacturers globally are participating on an equal level and that their voice is an integral part of this work. Additionally, this reduces the ever-present danger of a fragmented and uncoordinated approach in the apparel and textile industry.

The coming year will see intensive work on impactful actions to improve purchasing practices. STTI’s growth, its work with brands and retailers and the organisations that represent them and its prominent role in the OECD’s Annual Forum (on due diligence in the garment and footwear sector) reflects the initiative’s optimism that we are on the right track.

For further questions please contact:

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74

—

The Sustainable Terms of Trade initiative, led by the STAR Network, the International Apparel Federation (IAF) and the Better Buying Institute and supported by GIZ FABRIC consists of 15 industry associations from 11 countries facing similar challenges regarding purchasing practices in the textile and garment industry. These are: API, Indonesia; VITAS, Vietnam; CNTAC, China; GMAC, Cambodia; MGMA, Myanmar; BGMEA and BKMEA, Bangladesh; AEPC, India; PHMA, PTEA, TMA, Pakistan; IHKIB and TCMA, Turkey; ECAHT, Egypt and AMITH, Morocco.

The white paper contains the core principles that manufacturers as part of the Sustainable Terms of Trade Initiative (STTI) do not want to see breached by the companies that buy from them. And it suggests how manufacturers will collaborate to apply commercial compliance in the apparel sourcing business.

The initiative, led by the STAR Network, the International Apparel Federation (IAF) and the Better Buying Institute and supported by GIZ FABRIC consists of 13 industry associations from nine countries facing similar challenges regarding purchasing practices in the textile and garment industry. Through a process of consultation, these associations have now jointly agreed on the text of the white paper that is published today. This marks the first joint manufacturers’ position on the improvement of purchasing practices. 

The white paper establishes commercial compliance as a leading principle for the manufacturer’s perspective on the improvement of purchasing practices. STTI defines it as ‘purchasing practices that do not cause obvious and avoidable harm to manufacturers’. The white paper lists  ‘key recommendations’, defining what purchasing practices manufacturers consider to be breaches of their definition of commercial compliance. The associations participating in the initiative recognise that the breaches of these key recommendations seriously impair their ability to run a commercially viable business, let alone to contribute to stronger and more sustainable supply chains. 

Going beyond the key recommendations, the work by the associations has also yielded a set of further recommended improvements to current common purchasing practices. Importantly, the white paper also contains a comprehensive research agenda aimed at finding out how purchasing practices can adhere to commercial compliance and be further improved while maintaining the flexibility and commercial independence that is to the advantage of both buyers and suppliers, as well as their customers and workers. 

A phase 2 to the initiative is foreseen to start within weeks.  In phase 2, two major and interconnected approaches will emerge. The initiative will seek structural dialogue with buying brands and retailers and some of the MSIs in which they participate on the inclusion of the concept commercial compliance in purchasing practices codes. Secondly, the initiative will aid the creation of a system of improved transparency regarding commercial compliance. 

For further questions please contact: 

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070  

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74 

The Manufacturers Payment and Delivery Terms Initiative has taken an important step yesterday, concluding its phase 1 during its second Global Working Group Meeting. This initiative has been started by the STAR Network- which is supported by GIZ FABRIC- and by the International Apparel Federation (IAF). It is supported by the Better Buying Institute and the OECD and a range of experts. It is an initiative of now 13 participating manufacturing associations in the apparel and textile industries from 9 countries, together representing close to 70% of initial global apparel exports. The number of participating associations is set to grow further in the coming months.

The main deliverable of phase 1 is a white paper that will be released towards the end of April, after it has received input from the Initiative’s Advisory Board, in which major stakeholders representing buyers, government, MSIs and academia are well represented. Even though full details will be shared when the white paper is published later, today’s meeting demonstrated that the participating associations clearly agree on the following key principles that form the foundation of this paper:

First, this initiative has started from the recognition that even though buyer’s own initiatives to improve purchasing practices are important, they are not sufficient. While buyer purchasing practices have been increasingly scrutinized over the last decade for the impact they have on economic, social and environmental sustainability, in the past years it has become very clear to manufacturers that their vulnerability has increased and that they must play a stronger role in setting standards for purchasing practices that support mutually beneficial and sustainable partnerships.

Second, the initiative’s participants agree to make ‘commercial compliance’ the core principle of this initiative. In the context of the buyer-supplier relations in the fashion and textile industries, the initiative is defining ‘commercial compliance’ as purchasing practices that do not cross the boundary of misuse of buying power to the obvious and avoidable detriment of the manufacturer. In phase 2 of the initiative the united manufacturers associations will build structures for the enforcement of ‘commercial compliance’, which will inevitably include instruments to achieve transparency.

Finally, the white paper’s main body will consist of three tables, one listing ‘red lines’ for purchasing practices not to cross, one listing a range of recommendations for improving purchasing practices and one listing recommendations for further research. The list of ‘red lines’ clearly sets the bar for ‘commercial compliance’. “Publication of the red lines in a few weeks’ time will enable us to put the principle of commercial compliance into practice. The list of recommendations for improvement of purchasing practices and for research meanwhile will form the foundation for a structural dialogue that we are setting up in phase 2” says Matthijs Crietee, Secretary General of the IAF “This will be a dialogue on the improvement of purchasing practices involving the world’s main apparel manufacturing associations, buyers and organisations representing them.” The research list includes such topics as an international arbitration mechanism, the transfer of ownership of goods and research aimed at modernizing performance indicators that measure the value of end-to-end contributions to profitability.

The work on the Manufacturer’s Payment and Delivery Terms Initiative is continuing with the publication of the white paper in late April and with the start of phase 2 in May of this year. The initiative had initially started with nine associations of the STAR Network and already expanded with four additional associations of the IAF joining.

Note: Participating associations are:

Association	Country
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)	Bangladesh
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)	Bangladesh
Garment Manufacturers Association in Cambodia (GMAC)	Cambodia
Myanmar Garment Manufacturers Association (MGMA)	Myanmar
Pakistan Hosiery Manufacturers and Exporters Association (PHMA)	Pakistan
Towel Manufacturers Association (TMA)	Pakistan
Pakistan Textile Exporters Association (PTEA)	Pakistan
China Nationale Textile and Apparel Council (CNTAC)	China
Vietnam Textile & Apparel Association (VITAS)	Vietnam
The Indonesian Textile Association (API)	Indonesia
Turkish Clothing Manufacturers Association (TCMA)	Turkey
Istanbul Apparel Exporters Association (IHKIB)	Turkey
Moroccan Association of Textile and Apparel Industries (AMITH)	Morocco

For further questions please contact:

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070

Fatima-Zohra Alaoui | STTI  Deputy Spokesperson | f.alaoui@amith.org.ma

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74

Industry Associations from Turkey, Indonesia and Morocco join Asian Associations in IAF and STAR Network Initiative on ‘Manufacturers Payment and Delivery Terms’

Four major industry associations, the Indonesian Textile Association (API), the Turkish Clothing Manufacturers Association (TCMA), the Istanbul Ready-Made Garments Exporters’ Association (IHKIB) and the Moroccan Association of Textile & Clothing Industries (AMITH) are joining the new initiative by Asian manufacturer associations to drive better purchasing practices in the textile and garment industry. The initiative, started by the STAR Network, supported by GIZ FABRIC, the International Apparel Federation (IAF) and the Better Buying Institute, presented their plans at the OECD Forum on Due Diligence in the Garment and Footwear Sector on February 3^rd, 2021. This marks a joint global effort led by manufacturers to establish a common position on payment and delivery conditions in the industry.

The initiative on ‘Manufacturers Payment and Delivery Terms’, which has been officially launched on January 12^th, comes as the apparel and footwear industry works to better connect supply to demand, reduce waste, and improve profitability, recognizing that buyers and suppliers must strengthen their relationships to both support pandemic recovery and prepare for future supply chain disruptions. As Miran Ali, STAR Network spokesperson, said at the OECD Forum: “Following the pandemic, there should be a complete reset of the buyer-supplier relationship; we should not revert back to the norm.”

In collaboration with various global stakeholders, the STAR Network, GIZ FABRIC, IAF and Better Buying are creating a safe space for manufacturers to jointly draft a set of minimum expectations and outline recommendations and best practices related to payment and delivery conditions. This includes establishing certain red lines and core principles that they deem essential for fair legitimate business.

“Suppliers from around the world are coming together to offer solutions for strengthening global supply chains,” said Dr. Marsha Dickson, President and Co-Founder of the Better Buying Institute. “Suppliers often have the best ideas for how to overcome challenges and the impacts of brand and retailer purchasing practices on workers and the environment. It’s critical their voices be heard.” Matthijs Crietee, IAF Secretary General adds: “In the end, improvements in purchasing practices are essential to driving industry-wide change.”

Suppliers participating in this effort represent roughly two-thirds of the global market share of global apparel and footwear factory exports.  Participants include members of the STAR Network and IAF, including: VITAS (Vietnam); CNTAC (China); GMAC (Cambodia); MGMA (Myanmar); TMA, PHMA and PTEA (Pakistan); BGMEA and BKMEA (Bangladesh) and now also TCMA and IHKIB (Turkey); API (Indonesia); and AMITH (Morocco). The gamechanger is the collaboration between all of these organisations. As Miran Ali formulated it at the OECD Forum: “The fact that there is fierce competition among manufacturing countries is not an impediment to collaboration.”

The initiative is supported by GIZs regional project FABRIC Asia, built on the input from STAR Network and IAF/ITMF members and managed by IAF with support from Better Buying Institute. The first phase of the project will run until March 31^st of this year.

About the International Apparel Federation (IAF)

IAF (www.iafnet.com) is the world’s leading federation for apparel manufacturers, (SME) brands, their associations, and the supporting industry. IAF’s membership now includes apparel associations and companies from more than 40 countries, a membership that directly and indirectly represents over a hundred thousand companies and over 20 million employees. IAF brings its members together to jointly create stronger, smarter and more sustainable supply chains

About the STAR Network

The STAR Network (Sustainable Textile of the Asian Region) is the first inter-Asian network of producer associations. It serves as a platform for dialogue and trust-building to exchange on good practices to make textile and garment production more sustainable and helps members find solutions to the challenges they all face. The purchasing practices initiative has been initiated together with the STAR Network in January (see press release on their website). The STAR Network has been established in 2016 with the support of GIZ FABRIC.

About GIZ FABRIC

GIZ FABRIC is a regional project that the German Development Cooperation “Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH” implements on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). FABRIC aims to foster sustainability in the Asian textile and garment industry. It identifies the common interests of key actors – in the factories, ministries, civil society and international brand manufacturers – and brings them together with the aim of developing a shared vision of sustainability and promoting greater cooperation.

About Better Buying™

Better Buying Institute (www.betterbuying.org) reimagines supply chain sustainability, leveraging data to strengthen supplier-buyer relationships and improve purchasing practices that drive profitability while protecting workers and the environment. Better Buying’s programs provide retailers, brands, suppliers, and industry with data-driven insights to help drive lasting improvements in global purchasing practices.

For further questions please contact: 

Miran Ali | STTI Spokesperson | miran@bitopibd.com | Mobile +880 171 1565070  

Matthijs Crietee | STTI Project Lead at IAF | crietee@iafnet.com | Mobile +31 653 93 06 74 

Representatives of the STAR Network, the first inter-Asian Network of Producer Associations of the textile and garment industry, came together on Tuesday, January 12, 2021 to start a new initiative calling for better purchasing practices in the textile and garment industry.

“We want to come together as associations and manufacturers in Asia, to agree on common positions regarding payment and delivery terms so that we have a stronger voice in individual and in collective discussions with brands and buyers on improving purchasing practices”, spokesperson Miran Ali, representing the STAR Network, stated. The unique aspect about this initiative is: It is raising questions around purchasing practices, such as payment and delivery terms, from the perspective of manufacturers and the associations representing them, making it a true bottom-up initiative, that all nine member organizations, GMAC, BGMEA, BKMEA, CNTAC, PTMA, PHMA, TMA, MGMA and VITAS support. “This common position will be powerful”, Miran Ali states, who estimates that the Network represents over 60% of all global apparel exports by manufacturers.

The textile and garment industry has been characterized by a power imbalance between the brands and buyers on the one end and the textile and garment producers on the other. This imbalance has been increased and made more visible during the COVID-19 pandemic, in which order cancellations, especially from European and US-brands and buyers, left many Asian producers with their backs against the wall. “The situation has been difficult before”, the initiatives’ spokesperson Miran Ali explains, “but COVID-19 changed everything. However, it does not end with COVID-19!”.

Until March 2021, the associations will work together in five working groups, defining their “red lines”, requests and recommendations on topics such as payment and delivery practices, planning and information exchange and third-party negotiations. Based on the output of the working groups, the second phase of the initiative will drive the roll-out in the industry. Many industry organizations and networks have already pledged support to the initiative. They will be involved as experts, supporting the working groups or as part of an industry advisory board. However, before brands, buyers and other stakeholders are joining the discussion table, manufacturers and associations will use the “safe space” of their new initiative to develop joint requirements and recommendations, to then communicate them with one voice.

The STAR Network serves as a platform for dialogue and trust-building to exchange on good practices to make textile and garment production more sustainable. It has been established in 2016 with the support of the German Development Cooperation Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which implements a project called FABRIC Asia, that aims to foster sustainability in the Asian textile and garment industry on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Amidst the early phase of the COVID-19 pandemic, the STAR Network had already issued a joint statement, calling for Responsible Purchasing Practices amid the COVID-19 crisis, which they published on their joint website in April 2020.

After all members confirmed their commitment, STAR and GIZ FABRIC joined forces with the International Apparel Federation (IAF) to build this purchasing practices initiative. IAF is already in contact with further IAF-member associations who are planning to join the initiative.

For further information please contact:

Miran Ali | Spokesperson miran@bitopibd.com Mobile +880 171 1565070                          

Matthijs Crietee | Secretariat crietee@iafnet.com Mobile +31 653 93 06 74