Proposal B6: Establish long-term relationships with factories.

Establish long-term, stable supply contracts with supply factories.

The sportswear industry is addicted to flexibility. In the current sportswear business model, retailers, brands, and transnational suppliers seek to maximize their ability to change not only the styles and products being produced, but the factories and/or countries in which the goods are being made, all in pursuit of the quickest, most reliable, best quality and, of course, cheapest production. The industry must come to terms with the instability in orders that encourages factories to seek an increasingly flexible workforce. Buyers must make efforts to adjust their purchasing practices to develop long-term, stable and predictable supply contracts with supply factories.

Responses

adidas

Adidas strives “to engage in long term and stable relationships with manufacturing partners,” but makes no commitment on targets.

Full response

"Over the past 7 years the adidas Group has implemented a sourcing strategy that seeks to balance security with flexibility and growth. To this end, we strive to engage in long term and stable relationships with manufacturing partners."

Lotto

Lotto claims to have relationships of more then 5 years with more than 50% of its suppliers, meaning the company already meets the Vancouver 2010 target, however, no commitment in made on London 2012 target.

Full response

"We have working relationships of more then 5 years with more than 50% of our suppliers (10% of our total suppliers longer than 15 years), highlighting positive partnerships that have been established, and these factories are present in China, Indonesia and Vietnam."

Mizuno

Mizuno acknowledges there are quality, efficiency and labour benefits to longer-term relationships with suppliers, but does not commit to any firm targets.

Full response

"To build long-term relation, we tried longer connection with factories. We understand that it should affect positive impact to 'Quality' 'Efficiency' and 'Labor Environment'."

New Balance

No response given.

Puma

No response given.

Nike

“Nike's focus within apparel and footwear is to move toward fewer stronger, longer-term strategic partnerships with factories.” The company will meet the target if calculated on FOB volume or % of workers.

Full response

"Nike's focus within apparel and footwear is to move toward fewer stronger, longer-term strategic partnerships with factories. Our ability to meet the target and report on it depends on how the percentages are measured. If based on FOB volume or % of workers, this is attainable, as it reflects our current footwear strategy. If it reflects total number of factory locations, this may be more challenging, particularly as we are just beginning to incorporate Nike subsidiary brands into the overall strategy."

Pentland

Pentland acknowledges the benefits of longer-term relationships with suppliers but does not commit to any firm targets.

Full response

"Our ability to work with our suppliers depends on a strong business relationship. If the relationship is a long term one then management can begin to build in the changes to the development plan, knowing that the business is likely to continue."

Asics

ASICS says that it awards long-term and/or stable supply contracts based on business considerations, but that it selects and retains factories that comply with its code of conduct. There is no specific commitment to creating long-term stability in the supply chain.

Full response

Long-term and/or stable supply contracts are given based on the business aspect. ASICS selects and retains partner factories that follow business practices that are consistent with ASICS policies and values on the same principles as provided for in "ASICS Vision", "ASICS Philosophy" and "ASICS Code of Conduct". Asics continues business and establish long-term relationship with the partner who shares the same spirits as our founders required, "The person who participate in the Asics business under the philosophy of common destiny should act together."

Response Key

The brand claims to implementing all components of this proposal or has agreed to implement them within Play Fair's proposed timeframe.

The brand is currently implementing or has agreed to implement some of the essential components of the proposal but has refused to implement, has overlooked, or has raised issues with one or more important components; or, the brand agrees to implement the proposal but not within Play Fair’s proposed timeframe.

The brand has refused to implement the essential components of the proposal.

The brand has misunderstood or failed to comment on the proposal; or the brand is considering the proposal, but has yet to make a decision.