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Legally binding commitments for producers
Early, detailed and reliable planning
VAUDE develops and produces two collections annually: a summer and a winter collection. The exception is the Packs'n Bags which has four annual collections.
Internal planning process
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 pre-order rounds with our customers, we check the forecast again and adjust it if needed before putting in a fixed order to the producer. Once an order is placed, it is not longer modified or cancelled.
| GRI: | DMA Aspect of procurement |
Supplier Assessment for Labor Practices
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Legally binding commitments by producers
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.
Verification by the FWF
This point is covered in the audits of the Fair Wear Foundation (FWF); in the Management Requirement, VAUDE's Sourcing Practice; and checked at every Brand Performance Check (BPC). This FWF issue is a component of the annual producer meeting to assess the collaboration.
Overall, there were 20 complaints about "VAUDE buying practices": 17 in China and three in Vietnam.
The main complaints were:
- VAUDE’s prices are, especially in terms of VAUDE’s small quantities, lower than other customers’.
- The management of production facilities expects that VAUDE could give more orders.
- An uneven order placement distribution over the year was mentioned. This can result in excessive overtime.
Year-round utilization of producers as a target
We have evaluated these concerns and have had discussions with our management and our allocations and purchasing departments in order to place orders earlier and/or balance the quantity and times of orders in the future. We are in the process of consolidating our producers to achieve a year round workload.
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