LONDON–(BUSINESS WIRE)–The use of sweatshops is common in fashion industry supply chains because of their high production speeds and low labour costs. However, brands might save more in the long run by establishing supply chain transparency and using only ethical means of production.
This is according to SpendEdge, in their blog titled The Importance of Transparency in Fashion Industry Supply Chains.
SpendEdge explains, “Brands might actually benefit more from making their supply chains wholly transparent, researching their suppliers’ and partners’ business practices, and not using sweatshops. According to a study conducted by Political Economy Research Institute, customers would be willing to pay 15% more to know that a product wasn’t produced in a sweatshop—and doubling the salaries of sweatshop workers would only increase the price consumers were charged on a garment by 1.8%.”
To establish supply chain transparency, SpendEdge suggests that, “They can start by tracing and documenting each step of their supply chain and considering the working conditions, costs, and well-being of the workers at each stage. They should also evaluate each of their suppliers and consider whether or not they fit in with an overall goal of sustainability and ethical production.”
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Supply chain transparency is critical to ensure that workers at every stage of the supply chain have access to safe working conditions and fair wages, and can help to build consumer trust and retention.
Read the entire blog here: https://www.spendedge.com/blogs/importance-transparency-fashion-industry-supply-chains
More information on achieving supply chain excellence and how properly assessing supply chain risk is helping multinational companies across all industries can be found using resources from SpendEdge. These resources are compiled from SpendEdge’s team of 500+ procurement solutions experts.
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