We believe the supply chain, to function well, literally and figuratively speaking needs a new contract. It needs to operate with a greater sense of equity. Trust needs to be rebuilt. And changing business processes need to be backed by new agreements. That is why IAF has teamed up with the STAR Network of industry associations, GIZ, Better Buying and the OECD in a project in which around ten associations will build their recommendations for payment and delivery terms.
Even though the intentions are often good, purchasing practices are more an offer by buyers. This project will lead to better purchasing practices through a more equal discussion about them. The financial flows fueling the supply chain including a fairer distribution of risk and reward are a major part of this new contract and IAF is developing both guidance and concrete services to its members in this area.