Avoiding Common Pitfalls in Procurement Contracts

Avoiding Common Pitfalls in Procurement Contracts

Uniform procurement might seem straightforward – but up to 30% of uniform budgets are lost to poor planning, hidden costs, and supplier issues. Without careful planning, the process can become complicated and costly. Poorly constructed contracts can lead to supplier lock-in, hidden charges, delayed deliveries, and garments that simply don't meet the needs of your workforce.

In today's workplace, uniforms do more than meet dress codes – they convey brand identity, support team performance, and contribute to compliance and sustainability goals. That's why taking a strategic approach to procurement is essential.

1. Vague Specifications: A Costly Mistake

One of the biggest risks in uniform procurement is unclear or incomplete specifications. If you don't clearly define materials, fits, performance requirements, or delivery expectations, you may end up with garments that look fine but fail in practice. The more precise your specifications, the more likely you are to receive a product that works for your team.

Specifications should include details such as:

  • Fabric weight and composition (e.g. 200gsm, 65% polyester / 35% cotton)
  • Size grading and measurements across the full size range
  • Shrinkage tolerances (min/max)
  • Colour fastness and UV resistance ratings
  • Wash durability (e.g. tested to 50+ industrial washes)
  • Fit type and pattern (e.g. relaxed fit, drop shoulders)
  • Fastening types (e.g. YKK zippers, snap buttons)
  • Branding methods (e.g. embroidery, heat press)
  • Quality assurance (QA) tolerance limits
  • Labelling requirements (e.g. care instructions, garment origin)

Well-defined specs are your quality control foundation. Without them, you risk receiving inconsistent products, limited recourse for faults, and delays resolving issues.

2. Restrictive Supplier Contracts

Supplier exclusivity can sometimes seem like a practical move – but it can backfire. While strong, long-term relationships with a trusted supplier are valuable, your contract should never limit your ability to evolve.

A well-structured agreement might include:

  • Flexibility to scale up or down as staffing levels change
  • Allowances to trial new garments or adopt new technology
  • Clear performance expectations and review checkpoints
  • Exit clauses linked to missed KPIs or delivery failures

Your uniform should evolve alongside your workforce. Contracts should enable innovation – not stifle it.

3. Underestimating the Total Cost of Ownership

Uniform pricing is about more than the per-unit figure. Focusing only on the upfront cost often leads to hidden spend and operational inefficiencies over time.

Total uniform cost may include:

  • Freight and handling (especially for remote locations)
  • Branding and customisation fees
  • Storage or warehousing costs
  • Returns processing and credit issuance
  • Sample development and approval rounds
  • Portal setup and admin time

Consider longevity as well. A $30 shirt replaced every 6 months is more expensive long-term than a $60 shirt that lasts 2 years. Beyond price, the cost of staff discomfort, increased admin, or inconsistent appearance can erode brand trust and efficiency. 

4. Aligning with Broader Procurement Standards

Uniform contacts should align with your company's wider procurement and ESG goals. This includes ethical sourcing, sustainability, safety standards, and supplier diversity.

For example, your garments might include:

  • REPREVE® fabrics made from post-consumer plastic bottles
  • Verified ethical supply chains through third-party audits
  • Compliance with NZ/AU safety standards (hi-vis, FR, etc.)

Programmes like AROUND also allow you to build circularity into your procurement by offering textile recycling and uniform takeback options – an increasingly important factor for values-led organisations.

5. Supplier Services Matter

More than just product delivery, your supplier should act as a partner. Features like real-time order tracking, online portals, and post-delivery reporting aren't luxuries – they're now the standard.

Look for suppliers who offer:

  • Implementation and rollout support
  • Integrated online ordering with live inventory
  • Clear returns and warranty handling
  • Reporting dashboards for spend and forecasting
  • Dedicated account management and responsive service

These capabilities reduce admin, support your teams, and ensure accountability.

A well structured uniform contract does more than secure a supplier – it protects your brand, your budget, and your people. By taking a strategic approach to procurement, you gain flexibility, transparency, and peace of mind. And most importantly, you ensure your workforce is equipped, comfortable, and aligned with your company's values.

Tags:
Older Post Back to Stay Sharp Blog Newer Post

Found this article useful?

Continue exploring insights, updates, and industry expertise from the Arrow team. Our blog covers the latest in uniform design, workplace trends, and how we’re helping teams stay ready for work.

BACK TO BLOG HOME