Global buyer-supplier partnership for softgoods up in 2022: Report

Scores improved compared to 2021 in areas including buyers making efforts to reduce duplicative audit requirements (4.2 per cent); fairness of buyers’ financial practices (4.1 per cent); buyers’ efforts to improve working conditions in supply chains (3.3 per cent); and whether a buyer was a preferred partner (2.1 per cent). Moreover, scores fell compared to 2021 in areas including business stability (6.7 per cent) and visibility (2.4 per cent), according to the Better Buying Partnership Index Report 2022.

There were significant differences in BBPI scores by region, with suppliers in China/Hong Kong and South Asia experiencing better partnerships compared to the six other regions in Better Buying’s analysis.

Brands and retailers who subscribed to the BBPI in 2021 and participated again in 2022, have improved their overall BBPI score by an average of three points. One repeat subscriber has improved its overall score by 10 points.

Business stability declined compared to 2021, suggesting that supply chain disruptions are far from over even two years out from the onset of the COVID-19 pandemic. Regional differences in BBPI scores highlight how important it is to understand partnership quality across a buyer’s full supplier base. Problems that aren’t apparent in one segment might be heavily influencing supplier relationships in another, the report concluded.

A small but emerging trend in the use of technology to improve operational efficiency, communication, and other aspects of buyer-supplier partnerships suggests suppliers’ expectations for how they engage with their buyers might be changing.

The report recommended that buyers should not let up their focus on maintaining business relationships with suppliers. Strong communication practices will continue to be a key tool in buyer-supplier partnerships as the industry continues to ride out the aftershocks of COVID-19.

In total, the purchasing practices of 160 buyers were rated in the BBPI, by far the largest number for any Better Buying Index to date (and up from 100 for last year’s BBPI).

This report presents the findings from the second annual Better Buying Partnership Index (BBPI), a short, anonymous survey of the quality of buyer-supplier relationships launched in 2021. It consists of 12 subjective measures and three open-ended questions where suppliers can share more in-depth feedback on their buyer’s partnership.

Fibre2Fashion News Desk (NB)