EARLY AND IMMEDIATE PAYMENTS TO OUR SUPPLIERS
BESTSELLER is immediately releasing payments on current orders, as well as implementing early payments until October, to ensure suppliers' cash flows. The focus is on bringing our partners through the crisis.
Over the past four months, we have all faced significant challenges and disruptions due to the global COVID-19 pandemic, and we have all had to make difficult decisions in order to protect our colleagues, our partners, and indeed our supply chain.
It has been necessary for us, due to lockdowns across the world, to adjust our business and indeed our inflow of goods. Our own order intake and own revenues have been hit hard, at times being close to zero, but we have tried our very best to minimise the impact passed on throughout our global supply chain. Due to our long-term commitments and close cooperation, we have supported each other and secured our mutual businesses’ immediate future, for which all of us at BESTSELLER are thankful.
Our closeness to our supply chain partners is something that we have always been proud of and, as a company, we see this as a critical part of our foundation and an enabler for future development. We meet our suppliers in all production countries face-to-face multiple times per year, and we take pride in visiting production sites, to follow up on actual progress and developments, and to address issues when needed. We have global teams working with labour rights, environmental improvements, chemical management and more. We work in close collaboration with our suppliers and all regional stakeholders – and have done so throughout BESTSELLER’s history.
Immediate payment on all orders
We understand the current situation for many manufacturers in our industry, and are determined to support our suppliers in the most effective way at this critical time. Therefore, BESTSELLER will immediately pay all current invoices early – regardless of the date of invoice. By releasing payments early, we aim to instantly strengthen our suppliers’ cash flow.
Early payment for an extended period
The coming three months with Cargo Closing (CC) dates in July, August and September, we are with immediate effect implementing TT10 days. This applies to all orders living up to agreed CC dates. We trust that providing this immediate cashflow will - in the best possible way - enable our partners to do even better business with us, while helping all our suppliers meet their commitments.
As of 1 October, we will revert to standard payment terms TT90 days.
Disruption expected to continue
We at BESTSELLER have continued to pay all our suppliers. We actively monitor worker payments from suppliers to ensure proper conduct – this is an imperative part of our supplier agreements and always has been. We have, from the beginning of the COVID-19 pandemic, been committed to accepting delivery of orders already made and those in production. We have, to the best of our ability and despite lockdowns, tried to support the entire supply chain and we continue to submit orders to safeguard as many jobs as possible.
We have maintained a close dialogue with all our suppliers to understand their situation, and to find the best way forward for our mutual business. There will always be room for improvement. We continue to be motivated to improve our supplier collaboration and to strengthen our supply chain. This also means that we must accelerate the planned consolidation of our supply chain and unfortunately that will mean reducing the number of suppliers that deliver to us.
Our industry does operate in less developed regions where regional structures on labour law implementation are less developed. We work with a global supply chain team of 40 colleagues, who work closely with our suppliers to secure working conditions and to work on continuous improvements. We do expect the disruption caused by the pandemic to continue and it is therefore imperative that we as a brand and as a partner to suppliers in developing countries, continue to work on improving supply chain working conditions – and setting a long-term focus on improving with our strategic supplier partners. We will continue to reach out to all regional stakeholders, NGOs, labour unions, governments and employer associations, to support the development of stronger systems in all regions where we operate.
BESTSELLER endorses ‘COVID-19: ACTION IN THE GLOBAL GARMENT INDUSTRY’, an initiative that has been developed by the ILO, IndustriAll and other relevant global stakeholders. This commits us to take action to protect garment workers’ income, health and employment and support employers to survive during the COVID-19 crisis, and to work together to establish sustainable systems of social protection for a more just and resilient garment industry.