The International Apparel Federation (IAF) has called on global fashion brands and retailers to adopt fairer sourcing practices as the industry faces growing pressure from economic uncertainty, geopolitical instability and climate-related disruptions.
The federation warned that traditional sourcing models are increasingly unsustainable, particularly during periods of market volatility when financial and operational risks are often shifted disproportionately onto manufacturers.
According to IAF, recent shocks across global supply chains, including fluctuating consumer demand, rising production costs, logistics disruptions and regulatory changes, have exposed structural weaknesses in how sourcing relationships are managed within the apparel industry.
Manufacturers, especially in developing countries, are frequently required to absorb sudden changes such as order cancellations, price renegotiations or delayed payments. These practices can strain suppliers’ financial stability and limit their ability to invest in long-term improvements.
IAF said that fair sourcing must go beyond basic compliance standards and instead focus on building more balanced and transparent partnerships between buyers and suppliers. This includes ensuring stable order volumes, realistic pricing structures and timely payments that reflect the true cost of production.
Also read: Global Fashion Groups Urge Saks To Support Independent Designers
Industry analysts note that sourcing practices have come under increasing scrutiny in recent years, particularly following disruptions caused by the COVID-19 pandemic and subsequent global economic challenges. These events highlighted vulnerabilities within the apparel supply chain, where many suppliers struggled to remain operational due to sudden order withdrawals and payment delays.
The federation emphasized that improving sourcing practices is essential not only for supplier stability but also for the overall resilience of the global fashion industry. Stronger supplier relationships can help companies better manage risk, maintain production continuity and respond more effectively to future disruptions.
IAF also highlighted the connection between fair sourcing and sustainability goals. Manufacturers require financial stability and predictable order flows to invest in cleaner technologies, energy efficiency and improved working conditions.
Without fair commercial terms, suppliers may find it difficult to adopt sustainable practices, limiting the industry’s progress toward reducing environmental impact and meeting climate targets.
The fashion sector is estimated to account for a significant share of global greenhouse gas emissions, with a large portion generated during manufacturing processes such as textile production, dyeing and finishing. Addressing these emissions requires coordinated action across the supply chain, including support for suppliers.
IAF said brands must take a more active role in supporting their manufacturing partners by sharing risks and aligning sourcing strategies with long-term sustainability objectives.
The organization also called for greater collaboration across the value chain, involving not only brands and suppliers but also policymakers, financial institutions and industry groups.
As new regulations emerge — particularly in Europe, where due diligence laws are placing increased responsibility on companies to monitor supply chain practices — sourcing strategies are expected to evolve further.
Companies are increasingly required to demonstrate transparency in how products are made, including labor conditions, environmental impact and sourcing decisions.
Industry experts say this shift is pushing brands to rethink their procurement models, moving away from purely cost-driven approaches toward more responsible and resilient sourcing frameworks.
IAF noted that fair sourcing practices can deliver business benefits as well. More stable supplier relationships can improve product quality, reduce delays and enhance supply chain reliability.
In addition, companies that adopt responsible sourcing strategies are likely to strengthen their reputation with consumers and investors, who are placing greater emphasis on ethical and sustainable business practices.
The federation stressed that achieving meaningful change will require a shift in mindset across the industry. Rather than treating suppliers as interchangeable vendors, brands are encouraged to view them as strategic partners in delivering long-term value.
IAF said that creating a more equitable sourcing environment is essential for ensuring the future stability of the global apparel sector, particularly as it navigates an increasingly complex and uncertain operating landscape.
Analysts say that as supply chain disruptions continue to reshape global trade, the adoption of fair sourcing practices could become a defining factor in the competitiveness and sustainability of fashion companies worldwide.
The call from IAF reflects a broader industry trend toward greater accountability, collaboration and resilience, as the fashion sector adapts to new economic realities and rising expectations around responsible business conduct.
