OUR LATEST SUSTAINABILITY NEWS

May 5th 2020
Hunkemöller warehouse

COVID-19 AND OUR SUPPLY CHAIN

The Covid-19 pandemic has become a truly global crisis of an unprecedented scale influencing businesses and supply chains in an unexpected way. Hunkemöller believes that we have a responsibility towards our employees and our customers, as well as a responsibility towards our suppliers and the welfare of their factory workers.  With this statement we would like to be open and transparent about how we are working with our suppliers during this time and what we are doing to protect them, their business and their workers.

Hunkemöller warehouse

COVID-19 AND OUR SUPPLY CHAIN

The Covid-19 pandemic has become a truly global crisis of an unprecedented scale influencing businesses and supply chains in an unexpected way. Hunkemöller believes that we have a responsibility towards our employees and our customers, as well as a responsibility towards our suppliers and the welfare of their factory workers.  With this statement we would like to be open and transparent about how we are working with our suppliers during this time and what we are doing to protect them, their business and their workers.

A LASTING RELATIONSHIP WITH SUPPLIERS

We have long-standing relationships with the majority of our suppliers, which has enabled us to build a strong partnership allowing us to work in a collaborative way. Our supplier base reaches across several countries, with a total of 47 providers.  We maintain these long-term relationships: in 2019 approximately 55% of our purchase value was spent at suppliers who we have worked with for 10 years or longer. Our top 10 suppliers represent around 70% of our total buying requirements.

We build lasting relationships with our suppliers
We build lasting relationships with our suppliers

 

A LASTING RELATIONSHIP WITH SUPPLIERS

We have long-standing relationships with the majority of our suppliers, which has enabled us to build a strong partnership allowing us to work in a collaborative way. Our supplier base reaches across several countries, with a total of 47 providers. We maintain these long-term relationships: in 2019 approximately 55% of our purchase value was spent at suppliers who we have worked with for 10 years or longer. Our top 10 suppliers represent around 70% of our total buying requirements.

AN UNPRECEDENTED CHALLENGE NEEDS DIALOGUE

In light of the global pandemic and resulting country lockdowns, Covid-19 has had a big impact on business both in terms of customer demand and production. To react to the new situation, we have had to scale-up dialogue and work closely with our suppliers, supporting them to take the correct responsive and preventative measures. This has included reviewing our stock intake both in terms of re-phasing delivery dates and shifting to preferable products.

AN UNPRECEDENTED CHALLENGE NEEDS DIALOGUE

In light of the global pandemic and resulting country lockdowns, Covid-19 has had a big impact on business both in terms of customer demand and production. To react to the new situation, we have had to scale-up dialogue and work closely with our suppliers, supporting them to take the correct responsive and preventative measures. This has included reviewing our stock intake both in terms of re-phasing delivery dates and shifting to preferable products.

NO CANCELLED ORDERS

Our actions and reactions with respect to suppliers are made with long-term thinking in mind, to ensure we continue to collaborate through and after Covid-19. To maintain a sustainable approach Hunkemöller commits to take the following steps:

  • • We are committed to staying in close contact with our suppliers so as to take joint decisions and get through this together in the most sustainable way. We work with our suppliers on an individual and personal basis. Each relationship is unique and requires its own approach to achieve mutually agreeable solutions.
  • • To date, we have not cancelled any finished goods or those in the production process. In addition, all orders will or have been paid as per the price agreed in the contract with that particular supplier. Furthermore, we are committed to continuing to place orders in the same seasonal structure as the previous year(s) and we are not applying late-delivery penalties in relation to the current situation.


NO CANCELLED ORDERS

Our actions and reactions with respect to suppliers are made with long-term thinking in mind, to ensure we continue to collaborate through and after Covid-19. To maintain a sustainable approach Hunkemöller commits to take the following steps:

• We are committed to staying in close contact with our suppliers so as to take joint decisions and get through this together in the most sustainable way. We work with our suppliers on an individual and personal basis. Each relationship is unique and requires its own approach to achieve mutually
agreeable solutions.

• To date, we have not cancelled any finished goods or those in the production process. In addition, all orders will or have been paid as per the price agreed in the contract with that particular supplier. Furthermore, we are committed to continuing to place orders in the same seasonal structure as the previous year(s) and we are not applying late-delivery penalties in relation to the current situation.

Bangladesh production facility

IF WE CAN HELP MORE, WE WILL

  • • Due to changes in demand and closed factories, 11% of our total original purchase requests have been re-phased to different delivery dates. These were under agreed commercial terms and force majeure clauses were not part of this process.
  • • In cases where materials were already ordered we are committed to collaborating closely with our suppliers, using the materials in future orders or bearing the costs if there is no alternative solution.
  • • We will continue serving our customers both online and where possible in stores under strict social distancing guidelines. Therefore, we are placing new orders, which will ensure that our suppliers can continue to do business and provide employment.
  • • To date, none of the factories producing for Hunkemöller has filed for bankruptcy. Where appropriate, and indeed possible, Hunkemöller is open to supporting the factories in need and renegotiating commercial terms as required.
Bangladesh production facility

IF WE CAN HELP MORE, WE WILL

• Due to changes in demand and closed factories, 11% of our total original purchase requests have been re-phased to different delivery dates. These were under agreed commercial terms and force
majeure clauses were not part of this process.

• In cases where materials were already ordered we are committed to collaborating closely with our suppliers, using the materials in future orders or bearing the costs if there is no alternative solution.

• We will continue serving our customers both online and where possible in stores under strict social distancing guidelines. Therefore, we are placing new orders, which will ensure that our suppliers can continue to do business
and provide employment.

• To date, none of the factories producing for Hunkemöller has filed for bankruptcy. Where appropriate, and indeed possible, Hunkemöller is open to supporting the factories in need and renegotiating commercial terms as required.

HELPING OUR SUPPLIERS
HELPING HEALTHCARE WORKERS

  • • Hunkemöller is committed to promoting and respecting the ILO core labour standards, as well as safe and healthy workplaces. We are in close contact with local and national stakeholders and continuously review our risk assessment procedures, which we will update as necessary. Our Code for Labour Practices can be found here
  • • In March we shared guidelines with all factories in Bangladesh, Cambodia and Myanmar on Covid-19 awareness and preventative measures as well as information on who to contact and how to stay updated. We urged factories that needed help to directly reach out to our CSR Manager.
  • • Due to the changes in demand, we have more stock than expected and we are looking into the possibility of donating leftover stock to charities.
  • • In addition, we have prepared 1,700 gift packages that we will deliver to healthcare key workers in The Netherlands to show our appreciation for their huge efforts.

 

HELPING OUR SUPPLIERS HELPING HEALTHCARE WORKERS

•   Hunkemöller is committed to promoting and respecting the ILO core labour standards, as well as safe and healthy workplaces. We are in close contact with local and national stakeholders and continuously review our risk assessment procedures, which we will update as necessary. Our Code for Labour Practices can be found here

•   In March we shared guidelines with all factories in Bangladesh, Cambodia and Myanmar on Covid-19 awareness and preventative measures as well as information on who to contact and how to stay updated. We urged factories that needed help to directly reach out to our CSR Manager.

•   Due to the changes in demand, we have more stock than expected and we are looking into the possibility of donating leftover stock to charities.

•   In addition, we have prepared 1,700 gift packages that we will deliver to healthcare key workers in The Netherlands to show our appreciation for their huge efforts.

Hunkemöller is determined to tackle this challenge in a devoted way and the safety of our employees, customers, suppliers and other stakeholders is our priority. We understand that this is something we cannot do alone and are, therefore, open to working in collaboration with other brands and stakeholders in joint actions to secure the future of the garment supply chain and the garment workers. Only through working together will we get the best possible outcomes. We are open to suggestions and hope we can come out of this adversity as soon as possible – together, and even stronger.