Purchasing Practice

Purchasing practices refers to the ways that global brands and retailers interact and work with suppliers, including how brands source, buyers pricing, lead times for placing orders, payment terms, forecasting and stability for suppliers. Brands purchasing practices are often competitive, and push for the lowest possible prices and fasted turnaround on orders. During COVID-19, big brands specifically used their purchasing practices to minimise profit loss, such as paying suppliers only after the delivery of goods. Given the extreme power imbalances in the garment industry, where brands call the shots, it is possible for big brands to mass cancel orders or impose discounts on orders that are already completed or in production. While big brands can limit their obligations to suppliers in order to protect their profits, suppliers are left unable to pay workers and workers are left unable to buy food or pay their rent.