What Suppliers Wish Their Brand Partners Knew: Four Opportunities to Improve Collaboration and Accelerate Impact

At our recent Worldly Customer Forum, we hosted a panel discussion called “Better Together: Collective Action Between Brands and Facilities.” This session brought together sustainability team members from Legend Swimwear, RE&UP, and The Lenzing Group, which represent Tier 1, Tier 2, and Tier 4 manufacturers across the apparel industry.

The discussion, moderated by Worldly’s CTO, John Armstrong, covered (from a facility perspective) how brands can support their suppliers and enable smoother collaboration. The discussion shined a light on four specific things suppliers wished their brand partners knew, and which would support the goal of partnering for sustainability throughout the supply chain.

If you couldn’t make it to this session, or even if you did, read on for a recap of the things suppliers wish their brand partners knew about their obstacles to sustainability and how to solve them.

1. Sourcing and sustainability need better alignment

According to our panelists, one of the primary challenges suppliers face is the disconnect between a brand’s sourcing or buying departments and its social and environmental sustainability team. The latter may put a lot of value on the facility’s ability to operate at a certain level, while the former doesn’t factor sustainability into the vendor scorecard at all.

This disconnect can cause friction when a brand simultaneously expects its suppliers to operate in an environmentally responsible manner, but doesn’t assign value to that when making purchasing decisions. 

The solution: Brands need to integrate sustainability criteria into their sourcing and buying processes. By attributing value to suppliers’ sustainability efforts and including these metrics on vendor scorecards, brands can incentivize and reward a supplier’s performance and progress. This alignment will encourage suppliers to invest in sustainable practices and technologies, knowing that their efforts will be recognized and supported by their brand partners. By supporting their facilities in this work, brands will accelerate their own impact improvement, achieve their sustainability goals, and meet regulatory requirements for legislation like CSRD and CS3D.

2. Sustainability doesn’t have to compete with profit, but consumers still prioritize price above all else

Another significant obstacle for suppliers is the perception that consumers are not willing to pay more for sustainable products. Studies show that consumers say they’re willing to pay more for products that are produced in environmentally sustainable ways. However, when push comes to shove, consumer behavior still reflects their preference for low prices, and brands oblige by continuing to aim for lower and lower cost items. 

The solution: For suppliers, sustainable production makes more sense when their brand partners view it as an opportunity to tap into consumer values beyond price alone.

Lucietti also points to the automotive industry as a model where clear sustainability rankings allow consumers to see the correlation between sustainability and cost, with those prioritizing sustainability willing to pay more for a vehicle that delivers it. 

This trend especially benefits premium and mid-market brands, which are better positioned to attract consumers interested in quality and sustainability. By marketing sustainably sourced products as high-value items, brands not only set themselves apart but also ensure that suppliers receive fair compensation for their investments in sustainable practices. This approach can establish a profitable, mutually beneficial cycle that rewards both ethical production and consumer demand for quality.

3. Tier 1 facilities have sustainability strategies for their own supply chains

Tier 1 manufacturers would like brands to know that they often have a significant sustainability focus of their own in regards to their upstream partners. Sometimes, their efforts to improve sustainability with Tier 2, 3 and Tier 4 facilities can be hindered by a brand’s preference for a different facility, where the Tier 1 has very little buying power or influence but still needs the facility to meet environmental benchmarks. 

“Brands like to nominate the mills that we as Tier 1 suppliers work with, maybe because they have more bargaining power with them because they work with them across multiple Tier 1 facilities. However, I hold the PO relationship with that facility and I have very little buying power in the scheme of all of their customers, so it becomes difficult to ensure they’re sustainable if they aren’t already committed to it of their own accord,” says Chan.

The solution: Brands can recognize and support their Tier 1 suppliers’ efforts to drive sustainability throughout their own supply chains by working together to balance the brand’s preferences and the Tier 1’s sustainability strategies. Putting this into action may mean brands providing more flexibility in facility selection, or Tier 1 suppliers proactively communicating their sustainability goals and criteria to brands. By finding a middle ground and presenting a united front, brands and Tier 1 suppliers can increase their collective influence over upstream partners and drive more significant change throughout the supply chain.

4. Navigating government bureaucracy and public policy is a team effort

Finally, suppliers highlight the challenges of navigating government bureaucracy and public policy when it comes to enacting their sustainability investments and initiatives. Many manufacturers are prepared to make large capital investments to meet their own and their brand partners’ sustainability goals, yet face immense roadblocks when they try to do so. This is despite the fact that many governments now provide incentives to encourage sustainable manufacturing.

The solution: Brands and suppliers must work together to engage with policymakers and advocate for supportive regulations and an environment conducive to making these investments. Even when willingness and ambitions exist, bureaucratic red tape can still hold up sustainability efforts like the case Dr. Manda described.

By presenting a united front and sharing their expertise and experiences, brands and facilities can help shape public policy in a way that enables and accelerates sustainability progress. Collaboration and collective action are essential for overcoming bureaucratic hurdles and creating an enabling environment for sustainable investments.

Brands and facilities truly are “better together”

Achieving sustainability requires a collaborative and partnership-driven approach between brands and suppliers. Manufacturers want their brand customers to know about their challenges and work together to overcome them for the benefit of sustainability across the entire supply chain.   

At Worldly, we are committed to supporting these partnerships and driving progress by facilitating effective communication and the ability to share data and insights via our platform. By providing the tools and support needed for collaboration, we aim to accelerate the industry’s transition to a more sustainable and equitable future. Learn more about Worldly and how we can help brands and facilities alike meet their sustainability goals.