Sustainable Fashion Supply Chain Management: From Sourcing to Retailing
Sustainability is the hot topic of the decade. A global trend, more like a global issue, sustainability is critically raising concerns about our production and consumption patterns of goods and services. The ever-so-polluting fashion industry is on everybody’s radar when sustainability is a rising issue. An industry that contributes to almost 6–8 percent of emissions or some 1.7 billion tonnes of carbon emissions per year globally, it becomes very essential to adopt sustainable aspects not just into the products, but also in the entire inter-connected supply chain. A supply chain is a network of individuals, groups, organizations, activities, resources, and technology involved in creating a product and delivering it to the consumer. The centralized management of the seamless flow of goods and services that converts raw materials into final products and delivers them to the consumer is defined as Supply Chain Management (SCM). From procurement to production to distribution, SCM ensures the processes are performed in an efficient and economical manner. It helps companies to cut excess costs and deliver products faster by taking control of internal inventories, production, distribution, and sales. In widespread scenarios of fast fashion, supply chains are highly responsive to market fluctuations to satisfy changing consumer needs. But in recent years due to increased interest and pressure from consumers, sustainability advocates, media, and government bodies, many fast fashion leaders have adopted sustainable initiatives like Sustainable Supply Chain Management (SSCM) in their operations. Incorporating sustainability in the supply chain means an environment-friendly, socially responsible, and economically sustainable supply chain. Although initially, organizations have resisted changes in the environment, more recently companies have felt the need to adapt and transform their supply chain to not only obtain economic benefits but also incorporate social and environmental aspects into their supply chains. According to IBM, SSCM is embedding environmental, social, or corporate governance considerations into raw materials procurement, product development, distribution, and delivery.
SCM seeks to coordinate the individual parts of a supply chain with the goal to improve an organization’s overall performance in the long term. But when we compare conventional SCM to SSCM, there are additions of environmental and social aspects. Brands can take a comprehensive approach to SSCM by focusing on two key areas: reducing indirect impact created by upstream and downstream activities, and reevaluating garment design to make current sustainability measures more effective. Starting from sourcing, SSCM ensures the integration of environmental and social factors while selecting suppliers. The aim is to not only surpass challenges in regard to increased raw material prices but also to actively engage with global challenges, such as climate change. The idea is to build sustainable supplier relationships while improving other sustainability factors. For example, sourcing recyclable and certified materials that are generated from natural renewable resources from a local and transparent source. Following a strict code of conduct while onboarding suppliers will enhance transparency in sourcing amongst the entire supply chain and considering the human rights impact of the sourced material will add to the features of a socially responsible supply chain. This may be done because of widespread criticism from consumers but SSCM implication can save a brand’s image in the long term. Sustainable design, from idea to final product, is an essential part of SSCM as the design remains the core activity of the fashion industry. Important sustainable factors like waste generation, recyclability, use of natural materials, and longevity among others are crucial in design from a sustainable point of view. Effective planning of the design and its processes that meet the demands of the consumers while being less impactful to the environment can go a long way. Manufacturing these designs also have a great impact across the supply chain. Adopting a green and ethical method of manufacturing garments can tick all three pillars of sustainability. Incorporating energy-efficient technology and machinery, digitized processes of production, innovative waste management, and ethical production at a human speed will enhance the brand’s trust in consumers and can provide long-term benefits.
The SSCM doesn’t end at the manufacturing level. Distributing, warehousing and inventory management are inseparable parts of Sustainable Supply Chain Management. Transportation is an integral part of logistics, thus, reimagining the current ways of transportation has become important. The current methods of distribution have led to unimaginable levels of carbon emissions and are continuing to do so. In order to integrate sustainability factors in the supply chain, green alternatives of logistics like using fuel and energy-efficient vehicles, electric vehicles, using multi-drop and pack deliveries, full-load capacity utilization, identifying short routes, and promoting public transportation for deliveries can be encouraged. To effectively keep inventories in control at the retail and online stores, it is essential to have comprehensive communication between inventory control and the information systems to determine the proper order quantity and reorder points. Keeping all these factors in mind while keeping in mind ethics and social responsibility towards employees by providing employee satisfaction, fair pay, humanly behavior practices providing customer satisfaction with providing transparency, effective support and care will enhance the positive impact of the brand.
As the state of the planet where climate change is a major challenge, it is essential for the fashion industry to realise the extent of their contribution to global emissions and landfill waste. To address the urgency of the issues prevailing in the industry, brands and manufacturers can actively engage in a comprehensive approach to SSCM in their operations. They can reduce their impacts by investing in energy-efficient improvements, decarbonizing practices, and renewable energy. They can gain customer trust and generate more clientele by investing in repair, resell, recycle, and rental programs and being transparent in their sustainability reporting to the world. If the industry takes decisive action to prioritize sustainability in supply chains, fast fashion companies can significantly mitigate their environmental impact and create a more sustainable industry that offers long-term benefits to their bottom line, to customers, and the planet.
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