Page 30 - InterloopLimitedSR2020

OUR CUSTOMERS SUPPLY CHAIN

Interloop sells socks, tights & leggings to top brands and retailers across Europe, USA & Asia. COVID-19 pandemic has disrupted Our Green Purchasing strategy helps • Hosiery Yarns (Cotton Yarns,
Some of our top clients include: the business environment around the to limit the negative impacts on the Man-Made Yarns, Regenerated
globe and is causing supply chain environment in our supply chain. The and Recycled Yarns)
interruptions. Apart from COVID-19, strategy clearly defines the desired • Dyes & Chemicals which meet
many other externalities such as trade course of action and factors to be Oeko-Tex requirements and
wars, trends of protectionism and considered while making procurement other international certifications
nationalism, environmental and human decisions. Suppliers are required to be
rights issues have begun affecting compliant with international standards • Services General (repair &
the supply chains. These issues have related to product specification and maintenance, construction,
highlighted the need to transform quality. The procurement strategy etc.)
traditional supply chains to maintain also takes into account the existence
business as usual, in the new norm. of policies and procedures at our Our supply chain consists of around
suppliers’ sites for managing health & 1,000 suppliers spanning more
At Interloop, we are monitoring the safety, labor, and human rights-related than 24 countries. The suppliers in
impacts of these disruptions on issues. Our special consideration Pakistan (yarn suppliers) are mainly
our supply chain and working to of the sustainability criteria while labor-intensive while suppliers abroad
devise supply chain management inducting suppliers, as well as (parts, machines, and plants) are
strategies for business continuity. Our approach for carrying out periodic mainly technology-intensive. We
procurement strategy is focused on audits, help to ensure compliance, primarily procure materials and
getting the best combination of quality, and manage impacts within the supply services from local suppliers, in line
economy, efficiency, and effectiveness chain. During the year, approximately with our strategy to encourage the
while keeping sustainability as a 75% of new suppliers were screened development of a local supply chain,
priority. The Procurement & Supply for impacts on the environment and leading to economic development
department at Interloop is responsible society. within the country. However, the
for ensuring the timely availability equipment, materials, and services
of top quality materials as per We procure the following items from which are not available in Pakistan
requirements. Our procurement our wide range of supplier base: or do not meet the end customer
management not only focuses on requirements are procured from
cost-effectiveness but also on bringing abroad. During the year, we procured
a positive change for the stakeholders around PKR 16 billion material and
by pursuing an ethical and sustainable services, compared to PKR 20 billion
business. in 2019, of which 74% was from local
and 26% from global suppliers.

28 29