our belief
WE DESIGN, SOURCE & MARKET APPAREL
We source product from all the major apparel producing countries. To ensure that our suppliers are operating with the same high standards which we and our partner brands and customers set for ourselves, we have actively developed holistic & responsible global sourcing strategies. This Responsible Sourcing Policy represents our pledge to conduct business with integrity, openness, and respect for the rights of all individuals and core labor principles throughout our supply chain. This Policy provides the framework through which we set out our responsible sourcing ambitions and approach.
FUNDAMENTAL OBJECTIVES
INVESTING IN PEOPLE
All suppliers need to adhere to LTAG’s Social Compliance Program and Code of Conduct. Prospective suppliers undergo a rigorous compliance process which include comprehensive review of supplier records, worker interviews, on-site inspections of factory operations, etc., to ensure they meet LTAG and partner brand/customer standards. Post-audit assistance is also provided to suppliers to address issues of non-compliance, improvement and continuous operational performance.
LTAG personnel are trained and educated for practicing a fair purchasing policy to avoid any adverse impact on worker conditions. LTAG sourcing strategy does not revolve around buying at the cheapest price. Alignment of prices & financial terms with workplace standards & true value of the product forms the core of purchasing decisions. LTAG internal as well as partner teams conduct regular audits to ensure that all suppliers pay legal wages and benefits to workers, including the ones mentioned in Collective Bargaining Agreements, wherever applicable. LTAG is conscious that any factory/supplier termination has an impact on the workers. We provide advance termination notice to the suppliers to ensure they can find other customers for their open production capacities. We work very closely with the suppliers to minimize any adverse impact on the workers. LTAG has a zero-tolerance approach to bribery and corruption. We stand committed to act professionally, fairly and with integrity in all our business dealings and relationships. To avoid a conflict of interest or the appearance of a conflict of interest, and to deter any efforts to influence any employee, LTAG adheres to a “No costly” gifts policy as reflected in LTAG Employee Handbook.
Planning & purchasing practices
LTAG personnel are trained and educated for practicing a fair purchasing policy to avoid any adverse impact on worker conditions. LTAG sourcing strategy does not revolve around buying at the cheapest price. Alignment of prices & financial terms with workplace standards & true value of the product forms the core of purchasing decisions. LTAG internal as well as partner teams conduct regular audits to ensure that all suppliers pay legal wages and benefits to workers, including the ones mentioned in Collective Bargaining LTAG is aware of the consequences of improper planning and purchasing practices. Unreasonable production lead times, irrational product prices and delayed payments have direct and adverse impacts on workers. Such practices lead to excessive overtime, harassment, hazardous working conditions and late/under-payment of wages and benefits. It also impacts our business with late product delivery and also product integrity, safety and quality issues. To avoid these issues, among other things we:
• Share seasonal calendars & order projections with suppliers.
• Perform a capacity analysis with suppliers before confirming orders.
• Perform a product capability risk analysis before confirming styles to suppliers.
• Provide clear instructions for successful execution of our orders. Comprehensive manuals shared with suppliers lists out all our requirements (Vendor Manual, Product Integrity Manual, etc.) Our staff is well-versed in, and train the suppliers on, these requirements.
• Ensure suppliers are accommodated and not penalized for matters out of their control.
Agreements, wherever applicable. LTAG is conscious that any factory/supplier termination has an impact on the workers. We provide advance termination notice to the suppliers to ensure they can find other customers for their open production capacities. We work very closely with the suppliers to minimize any adverse impact on the workers. LTAG has a zero-tolerance approach to bribery and corruption. We stand committed to act professionally, fairly and with integrity in all our business dealings and relationships. To avoid a conflict of interest or the appearance of a conflict of interest, and to deter any efforts to influence any employee, LTAG adheres to a “No costly” gifts policy as reflected in LTAG Employee Handbook.
Motivate suppliers
