Living Crafts is a German fashion company specialised in organic textiles which joined FWF in 2016.
Brand Performance Check 2018
Living Crafts has met most of FWF’s performance requirements. It has monitored 68% of its production volume, thereby meeting the monitoring threshold of 60% required for the second year of membership. With a benchmarking score of 61 points, Living Crafts is awarded the ‘Good’ category. Living Crafts is part of the Dennree group and provides Denn’s (the group’s retailer), with workwear as well as other special textiles. Its business model of selling organic garments is mostly focused on business to business sales, although it also sells clothes through Denn’s shop and to consumers through its website. In 2017, seasonal items saw an upward trend and accounted for 53% of the annual turnover. To accommodate a wide range of products, Living Crafts requires a higher number of suppliers relative to the size of the company. The brand maintained a similar number of suppliers (in comparison to 2016), main changes being – addition of a new production location in Bosnia-Herzegovina, a new supplier in India with a long-term contract, largely reducing (towards exit) sourcing from China and adding two new suppliers in Germany, to replace a supplier facility that was closed.
The set-up at Living Crafts allows for a natural integration of social compliance considerations in sourcing and the way business is conducted. The purchasing department is responsible for material planning, cost estimation, order placement, supplier management as well as administration of compliance with GOTS standards and the FWF membership requirements. FWF recommends Living Crafts further leverage this set-up by: 1) Strengthening the supplier evaluation and scoring system, defining a scoring framework and using the information in supplier-related decision making and incentivisation of supplier performance. 2) Developing a pricing policy that ensures minimum wage at supplier factories and improving purchasing practices through increased awareness of supplier capacities and costing models. 3) Implementing a responsible exit strategy for suppliers where the brand is likely to stop sourcing for quality or other reasons. 4) Active participation and contribution to joint follow-up and remediation with other members at shared suppliers.
As Living Crafts expands its supplier base to support business growth, FWF recommends the brand use learnings from sourcing in 2017, strengthen its supplier identification and selection process for new suppliers, towards ensuring possibility of long-term relationships. Living Crafts also needs to consciously work towards increasing the monitoring percentage to over 80% of its production volume in its third year of FWF membership.
Score: 61, % under monitoring: 68, Category: Good