Supplier Certification Challenges: What Brands Need to Know

Discover the certification issues faced by suppliers and learn what actions can be taken to overcome these challenges.

The Fashion Producer Collective is a collection of producer-led projects representing a range of perspectives from individuals within apparel supply chains.

The Collective meets regularly in closed-door sessions to discuss specific challenges and offer insight and support. The following is a summary of the key points raised in a session on traceability and data equity in 2024. The points below are based on the insights written by Fashion Producer Collective co-founder, Kim van der Weerd.

“We tried to force the brand’s sourcing team to talk to their sustainability team. Then the brand’s sustainability team ended up coming to our sales team to negotiate lower prices. We fought over 10 cents for two months!”

Key takeaways:


1. Financial burden of certification:

  • Some brands pressure suppliers to ensure 100% of their ginners are certified, which is difficult for suppliers who use over 50 small ginners. The costs would require a large investment for them.
  • The additional certification costs would add $1 per unit—a cost suppliers believe brands would be unwilling to absorb.


2. Screening suppliers:

  • Suppliers are creating their own supplier checklist to understand their suppliers’ capacity and motivations for adopting more sustainable practices to ensure they are aligned.
  • They’re using this to develop strategic partnerships and consolidate their supplier base.
  • Supplier checklist hadn’t enabled price increases with brands but were used internally to avoid replicating brand behaviour with their own suppliers.
  • Whenever possible, the head of purchasing and head of sustainability engage with their suppliers together.


3. Challenges with cost distribution:

  • Efforts to distribute certification costs across various product lines and clients are hindered by the growing demand for open costings, limiting suppliers' flexibility.


4. Internal advocacy within brands:

  • Involving brand sustainability teams in price negotiations can facilitate internal advocacy, potentially leading to better support for certification-related expenses.
“Have you ever seen ginning mills in our area? It’s not the same as in the US or Australia. Here, it’s much smaller scale. Getting certified costs a ginner a lot. It’s also going to make our fabric more expensive.”


Recommendations for brands:


1. Financial support for certification:

  • Provide financial assistance or subsidies to suppliers to offset the costs of certifying small-scale ginners, recognising the shared value of sustainable practices.


2. Flexible costing approaches:

  • Allow suppliers the flexibility to distribute certification costs across multiple product lines and clients, acknowledging the collective benefit of a certified supply chain.


3. Internal collaboration:

  • Encourage collaboration between sustainability and purchasing teams within brands to ensure that sustainability commitments are reflected in pricing and sourcing decisions.


4. Transparent communication:

  • Foster open dialogues with suppliers about the challenges and costs associated with certification, working together to find mutually beneficial solutions.


By implementing these recommendations, brands can support suppliers in achieving certified supply chains, promoting sustainability, and strengthening partnerships within the industry.


Call to action:

If you’re a supplier and would like to join, Get in touch

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Author
Melanie Plank

Director of Content & Research at Common Objective

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