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OUR SUPPLY CHAIN

COVID-19 statement

Preamble


The global COVID-19 outbreak is taking on a scale that poses unprecedented challenges and far exceeds the scope of any single company. Despite this, we are still highly committed to respecting human rights within our entire supply chain. As a member of the Fair Wear Foundation and as a member of the Bündnis für nachhaltige Textilien (Alliance for Sustainable Textiles), but also as a responsible company, we are looking to mitigate the negative effects of the COVID-19 outbreak on the companies and workers in the supply chain, both individually and together with other stakeholders, and to secure stable relationships for the future. Our efforts are based on a collaborative approach and an understanding of the shared responsibility that all stakeholders in the supply chain hold.

Guiding principles

Deuter has enjoyed a close working relationship with its two manufacturing partners, Duke and Bellmart, for several decades. And this applies now more than ever in the current challenging conditions. We are mindful of the responsibilities we have and have committed to the following measures:

  • We are in close communication with our supply partners to find ways to minimise any negative consequences, and in particular to protect workers.

  • We are collaborating with other stakeholders to find joint solutions that best mitigate the negative effects of the COVID-19 outbreak.

  • Beyond the immediate crisis, we are continuing to help stabilise the supply chain and strengthen partnership relations through the implementation of responsible and fair purchasing practices.

Short-term measures during the COVID 19 outbreak


  • In general, we are refraining from cancelling orders, especially if they have already been confirmed and/or material has been purchased.

  • We are adhering to agreed payment terms, and if necessary, arranging advance payments.

  • There will be no late delivery penalties if these are due to the effects of the COVID-19 outbreak.

  • In the case of factory closures, workers will receive their wages and severance pay (provision of emergency financial aid).

  • We are looking into whether wages can still be paid in the case of a production standstill, or whether it is possible to make any concessions e.g. through adjusting payment terms, in order to secure wage payments.

  • Together with other stakeholders in-country, we are looking into other support measures that might be required, such as the provision of emergency financial aid to bridge workers’ wages or redundancies.

  • We are informing suppliers early of our projected orders and updating these regularly. And lead times are being coordinated with our partners. 

Regarding worker health and the risk of infection within production facilities, we are ensuring that:

  • Adequate personal protective equipment and measures are implemented to reduce the risk of infection. This also applies to the transportation of workers to and from production sites.
  • Workers are being informed about these protective measures and about their rights, and have access to employee/union representatives and other grievance procedures.

  • Suppliers are complying with government measures.

Outlook


If we are to mitigate any negative effects, in particular on the employees within the supply chain, the current situation calls for a collaborative approach from all parties involved, as well as effective communication and flexibility. It is only together that we will be able to overcome the COVID-19 crisis. However, the current situation also highlights the importance, both now and in the future, of fair and collaborative relationships between buyers and suppliers, because these are the foundations upon which stable and resilient global supply chains are built.

For further information please contact Marco Huehn, marco.huehn@deuter.com, Deuter Sport GmbH, Daimlerstr. 23, 86368 Gersthofen

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