We have been in close conversations with our manufacturers, customers, landlords, banks and all other partners to find solutions together to ensure that we can sustain the entire value chain. We have worked with both our retail partners and manufacturers to slow down shipments, stretch payments and make sure that we all share the burden across the whole value chain. We are also offering our manufacturers access to our vendor financing program, a financial support package which was established in 2016. The International Finance Corporation (IFC), banking group BNP Paribas and HSBC offer attractive financing terms to them. We are currently in the process of adding Standard Chartered Bank as our new financing partner to increase financing options available for our suppliers.
We acknowledge the importance to follow our responsible purchasing practice policy. We agreed with some suppliers on longer lead times due to the lockdown in some countries. As of today, all PUMA orders completed or in progress have been paid in full. We canceled very few (less than 1%) orders, which have also been paid to the manufacturers. PUMA did not ask for discounts on orders already delivered or prepared.
We have been keeping an open dialogue with our manufacturers to evaluate any risk related to any factory work suspension, workers’ layoffs, wage payments, overtime hours and working conditions. Our direct hotline with workers and organizations representing them all along remained open and any workers concerns were responded and addressed. We have been working closely with the ILO Better Work Program to ensure workers are treated fair and acknowledge the Fair Labor Association guidance. We are closely following up that any work suspension or retrenchment procedure are as per law and workers are paid as per law. PUMA deferred or advanced some future orders in a dialogue with our suppliers to make sure they have production in months which are critical for them, so they can maintain as much as possible workers’ employment and wages or rehiring previously dismissed workers.
We have guided our manufacturers to follow strictly their respective government instructions to protect workers health. To address the absence of Health instruction in some countries, we shared the International Labor Organization guidelines on prevention and remediation of COVID-19 at work.