Fiona Gooch, Responsible Purchasing Initiative
The professional activity of purchasing causes the dominant effect UK companies have on the livelihoods of workers and farmers who contribute to the supply chains which serve western markets. To address the importance of purchasing decisions the Responsible Purchasing Initiative has been initiated in collaboration with Chartered Institute of Purchasing and Supply, investors, companies, NGOs and other experts to provide purchasers with guidance. Materials on how to purchase responsibly from developing countries is available at www.responsible-purchasing.org. The materials available include:
- The Buying Game: a 10minute on-line self assessment interactive supply chain game;
- Taking the Lead, a good practice report which includes case studies;
- As well sector specific guidance for purchasing garments and ambient or perishable agricultural products
We would welcome feedback on these publications which propose specific solutions in recognition that sometimes the core purchasing activities of agreeing cost prices, lead times, volumes and payment terms are what lead to insufficient remuneration, forced over time, and delayed wages. These materials highlight where win – win – win outcomes are possible for the purchasing company, their suppliers and workers/farmers.
In some circumstances there are structural problems in the market where the purchasing company is able to abuse its buyer power, which disables suppliers from bring about the positive developmental outcomes for their employees and farmers they work with. For example the UK Competition Commission found in its recent Groceries investigation that UK food retailers ‘transfer excessive risk and unexpected costs onto their suppliers.’
- The Buying Game: a 10minute on-line self assessment interactive supply chain game;
- Taking the Lead, a good practice report which includes case studies;
- As well sector specific guidance for purchasing garments and ambient or perishable agricultural products
We would welcome feedback on these publications which propose specific solutions in recognition that sometimes the core purchasing activities of agreeing cost prices, lead times, volumes and payment terms are what lead to insufficient remuneration, forced over time, and delayed wages. These materials highlight where win – win – win outcomes are possible for the purchasing company, their suppliers and workers/farmers.
In some circumstances there are structural problems in the market where the purchasing company is able to abuse its buyer power, which disables suppliers from bring about the positive developmental outcomes for their employees and farmers they work with. For example the UK Competition Commission found in its recent Groceries investigation that UK food retailers ‘transfer excessive risk and unexpected costs onto their suppliers.’
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Comment by Business Fights Poverty on April 27, 2009 at 11:50am -
Useful Links
Responsible Purchasing Initiative website
The Buying Game
"Taking the Lead" Good Practice Report
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