Transparency is becoming increasingly crucial in the fashion industry, a sector often criticized for excessive production, human rights abuses, and unethical sourcing practices. With growing pressure from consumers and regulators for more sustainable products and reduced emissions, fashion companies are finding it necessary to evaluate and document their operational processes and impacts, as well as those of their business partners.
Supplier Scorecards: A Vital Tool
Supplier scorecards are emerging as an essential tool for achieving such visibility. These scorecards allow fashion companies to gather standardized data that is cost-effective to collect and easy to analyze. They also facilitate consistent and transparent discussions around measurable performance for brands like Patagonia.
Choosing the Right Metrics
Scorecards can aid companies in forging successful supplier partnerships by providing a channel to exchange feedback, improve relationships, and align goals. For instance, Brooks Running uses an internal scorecard to rate the performance of its tier 1 and tier 2 footwear vendors based on categories such as manufacturing quality and responsible sourcing and sustainability.
The Challenges of Implementation
Implementing supplier scorecards requires a unified system for data and information sharing. Creating such a framework can be challenging, but the key to successful implementation is transparent communication. However, compliance can still pose a challenge. In some cases, companies may opt to cease working with a supplier if the relationship doesn’t align philosophically and jeopardizes product quality.
Filling in the Gaps
Despite their popularity and success, supplier scorecards are not without flaws. Even large U.S. fashion companies sometimes struggle to collect sustainability data beyond their tier 1 suppliers. This can lead to inconsistent data quality, particularly when coupled with a lack of industry-wide standards and data complexity. However, third-party audits and sustainability certifications can offer solutions.
The journey towards a sustainable and ethical fashion supply chain is a long one. However, supplier scorecards can be a valuable tool along the way, helping companies understand and evaluate the performance of their suppliers in a tangible, consistent, and scalable manner.
