Supply Chain Accountability is Rising, It’s Still Costing the Industry Without This One Shift

  • Better Buying
  • Supply Chain

For years, industry focus was on cost, speed, and efficiency. That hasn’t gone away, but it’s no longer enough.

In orange, female workers attend to garment construction.
Black and white headshot of Lee Green
Lee Green
March 25, 2026

Key Takeaways

  • Companies who show consistent, comparable, and verifiable data across complex global value chains gain in the long run.
  • Misaligned frameworks are a cost driver, increasing the burden on suppliers and creating inefficiencies and data gaps across value chains.
  • Lack of alignment hinders progress.

There’s a noticeable shift happening in how global supply chains are being assessed.

For years, the focus was largely on cost, speed, and efficiency. That hasn’t gone away, but it’s no longer enough. Increasingly, companies are being asked to show not just what they produce, but how they produce it. Environmental impact, working conditions, traceability, and the credibility of underlying data are all moving into the spotlight.

Show, don’t tell. That’s the insistence behind the latest investigatory probes.

You can see this shift playing out across multiple fronts. Trade enforcement measures are starting to look more closely at how manufacturing systems operate today and what factors fueled their current scale. At the same time, sustainability regulations, due diligence requirements, and product-level transparency initiatives are expanding in parallel, particularly in key markets like the EU and Asia — reinforcing expectations on companies to demonstrate credible, comparable data across their value chains. These are not isolated developments. Together, they point to a clear direction of travel: supply chains are becoming more accountable, and expectations are rising.

For businesses, this changes the operating model.

Access to markets is increasingly tied to the ability to demonstrate credible performance. It’s no longer just about meeting internal targets or publishing a report. Companies need to be able to show consistent, comparable, and verifiable data across complex global value chains. That is a much higher bar.

But while government expectations are becoming clearer, the way the industry is responding is not. Most companies are still navigating a fragmented landscape. Different frameworks, different methodologies, different reporting requests, often asking for similar information in slightly different ways. For suppliers, this can mean managing multiple audits, duplicative data submissions, and competing requirements from different customers.

Risk and Reward

This is where the real risk – and opportunity – sits. According to Better Buying’s 2025 Win-Win Sustainable Partnerships report, 67.9 percent of suppliers reported cost savings of $5,000 or more by using a common framework such as the Social & Labor Convergence Program (SLCP)’s Convergence Assessment Framework (CAF). The CAF underpins Cascale’s Higg Facility Social & Labor Module (Higg FSLM).

Without undue burden of duplicate audits, suppliers put this money towards workplace investments, worker programs, new technology, community support, environmental certifications, higher wages, and improved financial outlook.  It’s easy to assume that regulation is the main challenge. In reality, the bigger issue is how fragmented industry responses are making it harder to meet those growing expectations. Misaligned frameworks are now a cost driver. They increase the burden on suppliers, create inefficiencies across value chains, and make it harder to generate insights that are actually useful for decision-making.

You end up with more data, but not necessarily better data. And at a time when policy expectations are increasing, that’s a problem.

Proactively Changing Course

If companies are going to meet rising expectations from governments, regulators, investors, and consumers alike, alignment needs to move higher up the agenda. Not as a nice-to-have, but as a practical way to reduce complexity and improve outcomes.

The data speaks for itself. Aligned approaches to measurement and reporting can help cut through duplication. They create a shared understanding of performance, improve comparability, and make it easier to translate regulatory requirements into operational reality. They also support more efficient collaboration between brands and manufacturers, which is where much of the real work happens.

This is where industry collaboration becomes critical.

No single company can solve fragmentation on its own. The scale and complexity of global supply chains mean that progress depends on shared approaches and common reference points. When companies align around consistent methodologies and shared frameworks, it reduces friction and allows effort to be focused where it matters most: improving performance.

That’s the opportunity that appeals to everyone from chief sustainability and procurement officers to chief financial officers.

The direction of travel is clear. Supply chain accountability is increasing, and it will continue to do so. The question now is whether the systems supporting it evolve at the same pace.

Why Buyer Demands Continue to Drive Fashion Supply Risks

  • Better Buying

Apparel brands still don’t give suppliers sufficient notice periods and lead times. A due diligence approach should include better long-term planning and collaboration with suppliers.

A garment worker in a shell pink scarf works at a machine with more peers in background
Headshot of Joleen Ong
Joleen Ong
IF Editorial Team
March 24, 2026

Many brands now speak confidently about responsible business and supply chain resilience. But those ambitions are harder to deliver when purchasing practices remain short-term. Planning and forecasting continue to be among the biggest points of friction between buyers and suppliers, and the consequences extend well beyond operational inefficiency.

Recent Better Buying surveys show this clearly. As one manufacturer noted: “There was absolutely no visibility or production forecasting by the buyer … they place last minute orders and we have to accommodate.” That kind of instability creates pressure throughout the supply chain, particularly where suppliers are already operating with limited margins and little room to absorb disruption.

The latest Cascale Better Buying Purchasing Practices Index (BBPPI), which captures anonymised supplier feedback on buyer purchasing practices, points to continued weaknesses in 2025 across several purchasing categories. Planning and forecasting remain key areas of concern, with notable regional variation. At the same time, wider macroeconomic pressures, including new US tariffs affecting finished goods, materials and components, are adding further uncertainty and reshaping sourcing decisions.

That matters because shifting sourcing strategies and rising commercial pressure can increase the risk of unintended impacts on workers, suppliers and environmental performance. Responsible purchasing practices are therefore not separate from due diligence. They are one of the mechanisms through which companies can anticipate and manage supply chain risk.

Plan ahead

Planning and forecasting decisions carry particular weight in apparel and footwear. Seasonal demand, long lead times and fragmented supply chains mean changes made upstream can quickly affect production schedules, labour conditions and factory stability downstream.

The BBPPI data illustrates the point. On average, only 34.5% of soft goods suppliers are receiving forecasts 120 days in advance. Repeat participants scored higher, with one company reaching 45.1% through a more advanced planning approach. The gap suggests that better performance is possible, but not yet widespread.

Regional supplier lead times. Source: Cascale’s BBPPI 2025

 

Weak forecasting does not only create operational inefficiency. It can also undermine responsible sourcing efforts. When demand changes late, suppliers are often left to manage compressed timelines, fluctuating volumes and cost pressures. Over time, these conditions can contribute to wider social and operational risk.

This is why planning cannot sit within one function alone. Merchandising, sourcing and supply chain teams all shape production conditions, even when the consequences are felt furthest upstream for tier 1 and tier 2 suppliers. Poor audit or assessment outcomes are not always isolated compliance failures. In some cases, they reflect commercial decisions made much earlier in the process, often across multiple licensors, retailers and sourcing markets.

Supplier silence

A significant impediment to improving processes is that suppliers do not always feel able to say when buyer processes are creating problems. Fear of losing business can limit honest feedback, particularly when the commercial relationship is already imbalanced.

In practice, this means suppliers often prioritise continuity and cost competitiveness, even when timelines are unrealistic or forecasts unreliable. Buyers, meanwhile, may continue to renegotiate prices, shift sourcing strategies, introduce new tech packs or place last-minute orders without fully accounting for the downstream impact. In that environment, risk is often transferred rather than resolved. Amid tariffs, a new race to the bottom emerges.

This is where confidential supplier feedback mechanisms become important. Cascale’s BBPPI is one mechanism through which suppliers can share anonymised views on buyer practices at no cost. By aggregating feedback across planning, forecasting, costing, sourcing and order management, it offers a clearer view of how internal buyer decisions materialise as risk across the value chain while protecting relationships.

As the tool has scaled, the ability to segment data regionally is more illustrative. Regional segmentation also matters. Supplier conditions, sourcing models and operational pressures vary across markets, and more granular analysis can support more effective dialogue between buyers and manufacturers.

Effective action

Progress remains limited. The 2025 BBPPI benchmark shows that only 43.2% of soft goods suppliers report that buyers are covering the cost of compliant production. But those companies that do engage, plan ahead and share risk across the supply chain see results according to the Better Buying data.

Moving from discussion to impact requires companies to embed clearer planning and responsible purchasing practices into day-to-day decision making.

Here are four practical next steps companies can take.

1. Strengthen planning and forecasting practices

Provide suppliers with earlier and more reliable forecasts, and align merchandising, sourcing, and supply chain teams around realistic production timelines. This includes considering advance payments (including post–ex factory while goods are in transit), seasonal level loading, and covering the costs of compliant production upfront to reduce downstream risk for suppliers.

2. Align internal decision-making across departments

Responsible purchasing practices cannot sit within one function alone. Planning, design, costing and sourcing teams must work together to ensure commercial decisions support responsible supply chain outcomes. Responsible purchasing practices cannot sit within one function alone. Planning, design, costing and sourcing teams must work together to ensure commercial decisions support responsible supply chain outcomes.This can be enabled through mechanisms like manufacturer balanced scorecards that incorporate sustainability metrics, and guardrails such as requiring sustainability team approval before issuing POs to new factories based on social and environmental risk.

3. Create safe channels for supplier feedback

Suppliers often hesitate to raise operational challenges directly with buyers. Structured and confidential feedback mechanisms — such as anonymized surveys, third-party platforms (e.g., Better Buying), regular supplier roundtables, and independent grievance channels — can help surface issues before they escalate into operational or social risks.

4. Use industry benchmarks to measure progress

Participating in industry initiatives enables companies to gather confidential supplier feedback, understand how their purchasing practices compare with peers, and identify practical areas for improvement.

Responsible purchasing practices require collaboration across the value chain, but they also create the conditions for greater resilience and trust. The opportunity now is for industry leaders to translate these principles into everyday purchasing decisions, starting with better planning today.

To participate in the 2026 BBPPI survey, please see more here.

This article draws on discussions from a jointly held webinar with Innovation Forum, Better Buying, Soorty Enterprises, Crescent Bahuman, and Eileen Fisher, which allowed for candid conversations on reshaping purchasing. We’ll be continuing discussions off-the-record at the upcoming Sustainable Apparel and Textiles Conference USA. For details of the upcoming 2026 forum click here. Use code CASCALE10 for a discount. 

This content was originally published on Innovation Forum as part of a collaborative blog series.

Better Buying Tools Manufacturer Information Webinar

  • Public
  • Cascale Event

Learn more about the Better Buying Purchasing Practices Index (BBPI), how participation works, and why collective input drives impact.

Date & Time
April 08 2026 | 08:00 - 09:00 (PDT)

Cascale Better Buying Responsible Purchasing Practices Snapshot Survey 2025

  • Better Buying
  • Responsible Purchasing Practices

This report offers a data-driven view of how suppliers experience buyers’ purchasing practices across the apparel supply chain. It draws on findings from the fifth annual Better Buying Partnership Index (BBPI) rating cycle and amplifies anonymized supplier feedback to highlight what is working and where improvement is still needed.

Cascale Better Buying Responsible Purchasing Practices Snapshot Survey 2025
January 30, 2026

Better Buying 2025 Insights: Navigating Global Volatility and Defining the Next Steps for Better Purchasing Practices

Join Cascale and Innovation Forum for a virtual webinar on December 9 that takes a deeper dive into supplier data and insights.

Date & Time
December 09 2025 | 15:00 - 16:00 (BST)
Location
Online

Better Buying Purchasing Practices Index (BBPPI) Report, 2025

  • Better Buying
  • Responsible Purchasing Practices

Purchasing practices performance in Apparel, Footwear and Household Textile Supply Chains.

November 11, 2025

New Cascale Better Buying Partnership Index Survey Opens

  • Better Buying
  • Responsible Purchasing Practices

Cascale Better Buying has opened the fall rating cycle for the Better Buying Partnership Index (BBPI), inviting suppliers and manufacturers to submit feedback to help accelerate responsible purchasing practices across the consumer goods industry.

October 01, 2025

Supplier and manufacturer data is critical to accelerating responsible purchasing practices in the consumer goods industry

Amsterdam, Hong Kong, Oakland (CA) – October 1, 2025: Cascale Better Buying today opened the fall rating cycle for the Better Buying Partnership Index (BBPI), calling on suppliers and manufacturers worldwide to submit feedback to help accelerate responsible purchasing practices across the consumer goods industry. The survey’s unique methodology helps buyers – both Cascale brand and retail members and non-members – better understand how their purchasing practices impact suppliers and manufacturers.

“As a global manufacturer, we firmly believe that the responsibility of improving working conditions and maintaining sustainable practices lies with both buyers and suppliers and manufacturers,” said Michael Cai, Director of Operations & Supply Chain, Décor Global.

“We have been working with Better Buying for over seven years and its vision strongly resonates with us. We see its unique value – providing a safe, confidential platform for suppliers to give candid feedback and co-create solutions. Over the years we have seen positive changes as buyers became more open to our suggestions, with real improvements in forecasting, planning and business management practices. We strongly encourage our peer suppliers to take part and rate their buyers’ purchasing practices.”

Now in its fifth rating cycle, the BBPI is a concise, 12-question, five-minute confidential survey that gathers input into the quality of buyer-supplier relationships. It is aligned with Better Buying’s Five Principles of Responsible Purchasing: time, visibility, stability, fair financials, and shared responsibility, which are reflected in Cascale’s mission to support decent work for all. The BBPI is moving the needle on buyer purchasing practices. Scores for partnership quality have increased every year since the BBPI first launched, with the highest to date, 52, recorded in the last BBPI cycle, a four-point increase from the previous year, reflecting notable improvements in buyer-supplier relationships.

This cycle marks the first BBPI launch since Better Buying joined Cascale earlier this year. All responses are fully anonymized and aggregated, ensuring business relationships are protected and enabling candid, unfiltered feedback. Findings are shared with brands and retailers that subscribe to Cascale Better Buying, equipping them with actionable insights to strengthen purchasing practices. Cascale is encouraging broad participation to strengthen the evidence base, elevate supplier voices, and scale collective progress toward more responsible purchasing.

“Every day, suppliers and manufacturers are impacted by brand and retailer buyer decisions. As such, they are the only true arbiters of where we stand as an industry on responsible purchasing practices,” said Katie Hess, Head of Product at Cascale Better Buying. “To drive transformation at scale, we must expand supplier participation, elevate their voices, and build a robust evidence base. This not only helps brands and retailers improve, but also brings more companies into the journey towards responsible purchasing.”

Through October 31, suppliers and manufacturers can use this link to take the BBPI survey. Brands and retailers, including Cascale members, are also encouraged to share the survey with their suppliers and invite them to rate the quality of their partnership.

Responsible Purchasing Practices as a Tool to Promote Ethical Behavior – An Update!

  • Better Buying

In this guest blog, Chana Rosenthal, principal and founder, reDesign Consulting, a sustainable business advisory firm, and consultant with the Ethical Denim  Council (EDC), and NYU Stern Center for Sustainable Business, offers an update on responsible purchasing practices.

Headshot of Chana Rosenthal
Chana Rosenthal
September 23, 2025

Almost exactly a year ago, I wrote a blog for Better Buying Institute in my capacity as consultant for the  Ethical Denim Council (EDC), about the role of responsible purchasing practices in promoting ethical behavior in the denim industry.

I highlighted that the post-Covid-19 acceleration of collaboration by multi-stakeholder initiatives and other industry stakeholders in seeking solutions  marked a new era in which profit maximization at the expense of workers is no longer accepted. Today, organizations are increasingly expected to embed ethical values at their core.

I lauded the progress made across the industry to achieve an agreed, industry-wide definition of responsible purchasing practices, but cautioned that the real foundation for promoting ethical behavior required embedding responsible purchasing within companies’ business operations.

“There is opportunity for brands to simultaneously profit and remain ethical,” I said at the time,  “but it requires a shift in behavior centered around responsible purchasing practices.”

In the year since I wrote those words, Better Buying has become part of Cascale, the global nonprofit alliance representing 300+ of the biggest brands and retailers operating in the apparel industry today, and has placed responsible purchasing practices at the center of achieving its strategic goal of Supporting Decent Work for All.

This development presents brands and retailers, including Cascale’s members, with broader access to existing tools such as the Better Buying Purchasing Practices and Partnership Indexes which may help advance responsible purchasing practices at scale and hopefully eliminate the need for the Ethical Denim Council.

In June, I had the pleasure to speak at the Innovation Forum’s Sustainable Apparel and Textiles Conference in New York, alongside Joleen Ong, Cascale’s senior director of brand and retailer membership, and Annie Agle, vice president of impact and sustainability at Cotopaxi. We discussed how brands can navigate responsible sourcing within a global trade and sourcing that’s evolving at an unprecedented rate.

Similarly, Joleen and I will convene again at Climate Week NYC for a Cascale organized session at the “The Climate and Nature Studio” (a first-ever convening with apparel alliance and fashion industry collaborators). The session also includes Nim Deshpande, managing director, Good Business Lab (which spun out of India-based Shahi Exports) and Evre Kaynak, sustainability specialist, human rights due diligence subject matter expert, W.L. Gore & Associates. This panel conversation will unpack the intersections of climate change, adaptation efforts, and the ripple effects on social and labor rights. I’ll assert that the climate disasters, disruptions, and ongoing tariff battles reshaping the environment actually provide procurement teams with a unique opportunity to craft strategies that streamline supply chains to build resilience, and drive sustainability with responsible purchasing practices integral to this new paradigm.

Interestingly, Better Buying’s research has shown us that, even amid global shocks such as the Covid-19 Pandemic, brands and retailers that had been collecting supplier data via its surveys for at least two consecutive ratings cycles continued to improve their purchasing practices throughout the pandemic, because they had begun to build the strong, two-way buyer-supplier partnerships required to build in the necessary resilience.

The shifts over the past year, from expanding collaborations to growing research and dialogue, show that responsible purchasing practices are becoming more visible as a part of the industry’s toolkit. Yet, there is still work to do with embedding these practices deep enough to impact the day-to-day business operations. As brands move in this direction, they reduce the risk of unethical behavior and the need for the EDC to exist but achieving lasting change will require consistent efforts, transparency, and accountability. Progress has been made, yet responsible purchasing practices are not yet the norm presenting a challenge and an opportunity to define the industry’s next chapter in a more positive direction.

About the Ethical Denim Council (EDC)

The Ethical Denim Council is a non-profit organization established in 2022 to address the power imbalance and unethical purchasing practices in the denim supply chain. Through the promotion of their 8 ethical practices and accountability of brands, retailers,  importers, and all members of the jeans and denim supply chains’ actions,the EDC aims to make the world of denim a better place. Refer to the EDC website to learn more.

About the Author

Chana Rosenthal is the principal and founder of reDesign Consulting, an apparel focused sustainable business advisory firm. She works with clients on thoughtfully created strategies and frameworks that shift internal business operations to be more sustainable and drive impact across the supply chain. She’s done extensive work with the NYU Stern Center for Business and Human Rights and the NYU Stern Center for Sustainable Business, as well as other organizations and businesses. Prior to consulting, she had an established career in apparel design holding positions at Ralph Lauren, Michael Kors, American Eagle/AEO, and more.

She also serves on the associate council for Delivering Good, a non-profit that distributes excess inventory to those in need through a network of community partners. Chana has an Executive MBA from NYU Stern, specializing in Sustainable Business and Innovation, and Supply Chain Management, and is based out of Brooklyn, NY.

Sneak Peek: What This Year’s Better Buying Garment Scorecard Tells Us About Industry Progress (and What Still Needs Fixing)

  • Better Buying

Lindsay Wright breaks down the 2025 Garment Industry Scorecard, highlighting where brands’ purchasing practices are improving, where they’re falling short, and the opportunities for industry-wide change.

August 20, 2025

The BBPPI Garment Industry Scorecard, the first since Better Buying joined Cascale in February, was released earlier this month.

The Garment Scorecard provides a quick snapshot of how brands and retailers are performing on purchasing practices compared to previous years.

Before we release the full Better Buying Purchasing Practices Index (BBPPI) report and once all participating brands have received their individual company reports, we share topline, aggregated scores. These scores reveal where progress has improved, stalled, or declined.

This year’s results show a slight decline in both the overall score and in most individual category scores, which is perhaps to be expected with all the ongoing uncertainty around the imposition of trade tariffs by the United States. Also, experience teaches us that headline numbers rarely tell the full story. Last year, scores were also fairly static, but deeper analysis revealed that some buyer companies had achieved significant improvements in key purchasing practices categories.

These topline figures present us with a baseline picture of where we stand — six months into Better Buying’s new home within Cascale — and signal an unprecedented opportunity to accelerate industry action. With Cascale’s wider membership, networks, and convening power, we mean to drive collective, systemic change on purchasing practices at scale.

Because every year that progress stalls is another year that suppliers struggle to operate sustainability and profitably. Another year where suppliers have had to deal with aggressive cost negotiation strategies, order cancellations, last-minute changes, poor forecasting, and duplicative audit requests. And where brands and retailers — the vast majority of whom still don’t participate in Better Buying rating cycles — miss out on the strategic benefits of partnering with their suppliers to improve purchasing practices.

The full BBPPI report will be published later this year.  That report will go beyond the numbers — sharing supplier stories, highlighting best practices, surfacing persistent challenges, and offering supplier-driven insights on how brands can improve and innovate.

Those stories and insights will inform critical discussions on what we need to do as an industry to make responsible purchasing practices the norm, not the exception, to Support Decent Work for All.

Stay tuned!

 


 

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How Fairer, More Accurate Costing Models Can Support Decent Work for All

  • Better Buying

In her latest blog, Lindsay Wright explores how fairer, more accurate costing models can drive responsible purchasing practices and support decent work across global supply chains.

August 13, 2025

There is a lot of good work being done by global brands and retailers in relation to improving their costing practices, but some buyers’ practices continue to place financial pressures on suppliers, and could actually be making things worse.

Cascale’s flagship Annual Meeting, which takes place in Hong Kong from September 15 to 17 under the theme “A Movement for All,” will consider how we can come together as an industry to create tangible, and sustainable, business for all. A key focus of the event will be determining next steps to establish responsible purchasing practices – including fairer costing practices – as the norm in global supply chains..

Under Cascale, Better Buying recently issued the “Suppliers’ Perspectives on Solutions for Better Costing.” The report is based on data collected from suppliers by Better Buying through tailored interviews and surveys. It focuses on the costing solutions being deployed, and promoted by brands, multistakeholder initiatives, and other key stakeholders.

The report’s findings and insights reinforce why it’s so important for all of us involved in solution-finding for worker livelihoods to have a seat at the table at every stage to ensure better outcomes. With core competencies in manufacturing and first-hand experience of the importance of fair costing to their businesses, suppliers are critical stakeholders whose expertise and concerns must be brought to the table.

The Reality Check

There’s been a lot of talk around purchasing practices over the past few years, but real change has been slow, patchy, and frustrating. With Better Buying now part of Cascale, there is an unprecedented opportunity to scale up action and create the urgency needed to mainstream responsible purchasing practices across the industry. This year’s Annual Meeting will aim to shift the conversation from intention to action, secure commitment from key players who can bring about the change needed, and ensure suppliers’ and manufacturers’ voices are center stage.

The costing report published today tells us in no uncertain terms that, as far as suppliers are concerned, their brand and retailer customers’ costing prices simply aren’t cutting it. Fewer than half of suppliers report that they are being paid prices that cover fully compliant production. Of those in the majority whose total costs are not covered, more than eight out of 10 (81.9 percent) say that the prices they were getting don’t even cover basic costs, like raw materials, component parts, and labor.

Ring-Fencing Labor Costs – A Waste of Time?

Suppliers tell us that cost models that fail to include accurate information on all cost variables will inevitably lead to far too low estimates of the costs of the final product. But when they do provide detailed information about their costs, it is sometimes used in nefarious ways by buyers to pit them against other suppliers in order to drive down prices. And interestingly, the practice of “ring-fencing” labor costs within cost models is seen by suppliers as unnecessary and not connected to the payment of better living wages, which chiefly depends on the total FOB price being paid. This practice is currently popular with and required by some buyers and multi-stakeholder initiatives.

This is welcome fodder to forthcoming discussions in Hong Kong about how we root out these poor practices once and for all, and act collaboratively to embed responsible purchasing practices.

In the long run, everyone in the supply chain can benefit from reducing costing pressures, fostering good communication and dialogue, promoting better forecasting methods, embracing a willingness to compare suppliers fairly, and costing in the context of forming long-term business relationships.