As mandatory human rights and corporate sustainability due diligence come on stream, global companies are under increasing scrutiny in relation to how they engage with their supply chain business partners.

According to the 2023 Know the Chain Benchmark, which evaluates corporate efforts to assess forced labour risks in their supply chains, despite their pledges to improve, fashion brands are falling short in the area of Purchasing Practices, scoring a dismal 12/100. There is a pressing need for businesses to adopt and disclose responsible purchasing practices.

This concern is echoed among our members. Based on feedback about focus areas the Mekong Club’s members wanted to prioritise and learn more about, the issue of improving purchasing practices and partnering more effectively with suppliers was among the most valued. Many of our members are already on that journey, and beginning to make improvements.

The Mekong Club is working with Better Buying Institute (BBI), which collects anonymous, independent data from suppliers on the purchasing practices of their brand and retailer customers, to better understand how to support our members on responsible purchasing. Companies that have subscribed with BBI over a number of ratings cycles are continuously improving their purchasing practices as well as reporting business benefits such as improved pricing, fewer delays, better on-time delivery, and more responsive and resilient supply chains.

Data collected by BBI in 2023 found that Consumer Products buyers score lower overall for supplier partnership quality than Softgoods (apparel and footwear) buyers, with suppliers reporting particular challenges in relation to operational efficiency and business stability, and highlighting the urgent need for members to focus their attention on developing fairer purchasing practices.

BBI’s annual Fall ratings cycle opens on October 1^st, enabling suppliers to rate the quality of their buyer partnerships via the Better Buying Partnership Index^TM, a short, subjective survey that is quick, easy, and anonymous for them to complete.

The Mekong Club is seeking to use this opportunity to collect data and insights on how our members are performing, so we can ensure that the learning and support we offer you on purchasing practices is informed by the data and focused on the right areas.

We are encouraging all our members to invite their suppliers to participate via the BBI survey link, which will be made public on October 1st via the BBI website and on social media, stay tuned! If the Mekong Club members receive sufficient ratings, BBI will be able to generate a report highlighting where our members are doing well, and where we need to improve, data which we can then use to discuss strategic next steps to enhance purchasing practices.

Companies that subscribe with Better Buying^TM receive actionable data in the form of individual scores and company reports, which they can use to drive improvements in their purchasing practices, in partnership with their suppliers. The data can also be used to compare company performance against an industry benchmark; to monitor year-over-year progress; to push for internal and C-suite buy-in for focusing on purchasing practices. Subscriber companies can also cite their work with BBI as part of their public and modern slavery due diligence reporting.

Any members who would like to find out more about subscribing for BBI data collections to contact Leonie Abraham at BBI to find out more.

Author: Clémence Aron