Power In Supply Chains Campaign
Present day supply chains are characterized by massive concentrations of (buying) power on the level of retailers and large traders. This leads to the diminishment of bargaining power for the small suppliers and subsequently to the ability of supermarkets and large traders to effectively dictate the terms of business. Producers and other suppliers are often left with a painful choice - to sell on poor and unpredictable terms, or not to sell at all. Although they may not be able to make a profit or may face long hours working in unsafe conditions, there are few alternative ways to earn a living for communities with no safety net to fall back on in hard times. Those marginalized and powerless at the end of the supply chain hence suffer most from unequal power in supply chains – and this is why the Fair Trade movement takes action.