Legally binding commitments for producers

VAUDE develops and produces two collections annually: a summer and a winter collection. The exception is the Packs 'n Bags which has four collections annually.

We are aware that processing times play an important role. Our planning process is of the utmost importance.

• Internally, we first create a forecast for the expected amount we will need for each model. This is checked for feasibility by the producer and adjusted as necessary.

• After the international sales meeting with our sale departments, we check the forecast again and adjust it if needed before giving a fixed order to the producer. Once an order is placed, it is no longer modified or cancelled.

We require early, detailed and binding planning of the purchase quantities from our sales department. The better our forecasts, the better the producer can plan, and the less unplanned overtime is incurred during production.

Prices are negotiated and set at an early stage with the producers. This is usually done by means of cost breakdowns. The cost breakdown is a detailed list by the producers of all materials used and their associated costs, and all other relevant costs incurred in the manufacture of a product.

After each season, the producers are evaluated in terms of deadlines, delivery reliability, quality, quantity, etc. and then measures for improvement are discussed.

This point is covered in the audits of the FairWear Foundation, in the management requirement, „VAUDE's Sourcing Practice” and is checked at every Brand Performance Check. This Fair Wear Foundation issue is a component of annual producer meetings to assess collaboration.
Overall, there was one complaint regarding „VAUDE buying practices" in Turkey:

The main complaint was that VAUDE’s prices, especially in light of its small quantities, are lower than other customers.

We have evaluated this concern and have had discussions with the producers and our Allocations and Purchasing departments in order to ensure that we pay reasonable prices in the future. In addition, the collection size and feasibility on the part of the producer is taken into account. 

We are striving to consolidate our collaboration with our producers, particularly to achieve a year round workload. This has two advantages: first, we can become a predictable, secure customer for the producer. And secondly, we have the opportunity to equalize quantities for both sides.