Efforts to improve purchasing practices and embed human rights into apparel supplier contracts are just some of the changes being made to industry buying habits, argues apparel sourcing expert, David Uricoli.
Commercial compliance within the apparel industry has been getting some attention lately and at the apex of these efforts is the Purchase Order. The PO represents a binding trade agreement between apparel buyer and seller. A buyer’s mistreatment of purchase orders to benefit their revolving business plans can devastate the supplier. When production alternatives and suppliers exhaust or misuse engineering options, manufacturing and overhead costs rise. And when costs rise, margins are eroded to the point where completing an order may require more resources than planned, sometimes forcing the supplier to operate at a loss.
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