MK 7041- Managing Sustainable Global Value Chains Assignment Sample 2024
Introduction:
The international supply chain has been going through changes over time due to changes in customer demands. A major contemporary change that can be noticed in the supply chain of fashion is using recycled material. Customers or buyers across the world has accepted the change whole-heartedly as they are concerned about the pressing risk associated with landfills and waste of water and greenhouse gas emission. The sourcing strategy is facing changes due to the change of supply chain in the fashion sector.
The chosen challenge is highly significant as the fashion industry is responsible for 10% of greenhouse gas emission with textile fabrication only, which releases greenhouse gases amounting 1.2 billion tonnes in the atmosphere every year and 10% of the global waste of water. 92 million tonnes of textile waste is formed every year, which can be solved using recycled items.
The BBC report has stated that by 2030 people will discard over 134 million tonnes of textiles in a financial year (BBC, 2020). The existing fashion structure usages non-renewable assets, including petroleum, which is extracted to produce clothes. Then, such materials are discarded to landfills which refers to waste of water, pollution and degrading ecosystems.
The country of choice to discuss the change and how it amplifies sustainability will be the UK. The majority of the fashion companies in the UK have decided to go green and offer stylish recycled clothes. Millennials, who are the targeted demographic of the industry, are highly aware of the pressing concerns associated with fast fashion.
Therefore, the UK’s fashion customers are highly sincere about the environmental impact of the industry. The customers are also likely to buy frequently and pay more for sustainable and environment-friendly fashion items.
Academic Literature Review:
The global supply chain of firms has helped in reducing cost. Following Awe et al. (2018), enterprises can lesser production costs and subcontract to free capital from related activities and produce large-scale efficiency. On the other hand, Sarkar, et al. (2016) cost of shipping, charges related to communication and tariff have reduced over time.
The supply chain of any company is built with eight components such as planning, information, source, inventory, production, location, transportation and return of goods. Sourcing is the major part of the supply chain used by firms to find the right suppliers and the quality that is wanted at an effective price point.
Strategic sourcing plays a role in ensuring a long-term relationship with suppliers. The businesses can consolidate their purchasing power using strategic sourcing to achieve the lowest possible total cost of ownership and minimise risk to the supply chain. Following the approach of strategic sourcing, brands try to be strategic about sourcing instead of being tactical. Sourcing affects Purchase cost, quality and development and design cost.
The businesses are shifting their supply chain to more sustainable supply chain management. The study by Ciccullo, et al. (2018) refers that management of sustainable supply chain is about incorporating environmentally and financially feasible observes into the entire supply chain life cycle from product design to material assortment, manufacturing, packing and transportation.
On the contrary, Esfahbodi, et al. (2016) claims that supply-chain sustainability can be characterised by an business issue that affects a company’s supply chain network in terms of environmental, risk and waste costs. It can be discussed using the theory of Green Supply-Chain management.
The theory is about incorporating environmental understanding into supply-chain management, calculating material sourcing and collection, manufacturing processes, product design, and delivery of the ultimate product to consumers and end-of-life management of the product after its useful life.
Waste management is one of the green operations which is linked with reverse logistics. For example, many products are not be placed in landfills, and companies are responsible for taking back products after their useful lifetime, a decrease of landfill availability and increase the landfill cost.
Green logistics effectively reduce energy waste and material as it focuses on minimising the ecological impact of logistics. The major elements of sustainability are social, environmental and financial sustainability. Thus, sustainability in the supply chain is more than going green as it helps improve productivity while saving money.
Purchasing trends are shifting as consumers trust in a product, its origin, and the production process has become a huge driver regarding how companies should operate to remain relevant. According to McNeill & Moore (2015), sustainable fashion is not about offering clothes which are more fashionable but being sustainable without sacrificing style.
The sustainable collection of cloths of brands reveal using new-fangled supplies from sustainable sources, recycled fabrics and raw supplies for accessories. Supply chain configurations refer to three types of sourcing such as single sourcing, multiple sourcing and delegated sourcing. All of these has own benefits and limitations. However, multiple sourcing is more appropriate for sustainable business.
The issues related to authenticity and quality, continuity of supply and more. Sustainable businesses require unique products which should be available all the time to ensure proper flow of production. Majority of the fashion brands and huge distribution chain has team that completely maintain responsible and sustainable manufacturing. Thorlakson, et al. (2018) say consumer awareness regarding ethical practice and sustainable sourcing is inspiring brands to achieve sustainability.
Following the Triple bottom line of the sustainable approach, a sustainable business takes care of all the bottom lines such as plant, people and profit. As per the theory, only working towards providing environment-friendly products is not enough; the community should receive advantages while the company increases its profits.
As the sourcing comes from emerging markets, companies are working towards being a helpful dynamism in local societies. Big companies can use their influence towards establishing effective working environment, lessen environmental impact and respect through the inclusive value chain.
Global agreements of trade unions have helped brands to work for generating improvements for worker and their family members, which includes fair wage system, rights of trade union and collective negotiation. Jung & Jin (2016) says fashion companies are focusing on a sustainable approach that includes ensuring decent wages, which is a part of the corporate policy.
The brands have set examples of good practices by publishing the list of suppliers, which improved transparency. Here, sustainable brands achieve success because of implementing a triple-bottom approach in the supply chain.
Access to technology and information is unprecedented. Thus, consumers are highly aware of brands impact on the planet, both negative and positive. Resources are not unending, and recycling is no longer an option to ensuring sustainability which ensures a great change in the supply chain.
Brands also promote an environment of safe and social-conscious practices by accepting diversity and inclusion in the supply chain. A major transformation in future is expected, which is creating clothes out of old ones. T-shifts, shoes, athletic clothes, underwear usually have a very short life span. Customers use these items regularly thus cannot be resold or donated thus ends up in a landfill, and most of them are not biodegradable.
The clothes are made of synthetic materials such as polyester or nylon, which can further leach chemicals into the earth. The major disproportion is seen between the usages of a t-shirt and time, energy and resources. Khan & Islam (2015) said 700 gallons of water is used to prepare a single t-shirt. Thus, even if it is damaged, it must be recycled into something else or another t-shirt.
A huge quantity of clothing ends up in landfills as they are not recycled and reused. The waste also comes from \ fabric and yarn manufacture and apparel creation and more. These are called post-industrial waste. However, all these materials are sourced by sustainable clothing manufacturers, which can be recycled and reused.
The length of change need further enlargement as 80% of the textiles can be recycled and reused but currently 25% is being recycled. In the sourcing process, garments are sorted and classified as natural, blended and synthetic fabric. Wearable clothing items are usually donated to charity institutions, whereas unwearable textiles are processed in factories as rags. Suppliers provide fresh fabric out of the old fabric by fibre reclamation and stuffing.
Sustainable fashion is a movement that fosters change to fashion products towards greater ecological integrity and social justice. In other words, sustainable and ethical fashion is an approach towards obtaining, scheming, and manufacturing clothes that benefit the fashion industry and society while reducing the impact on the environment.
As per Ma et al. (2020), re-using existing fibres and textiles reduces the need for manufacturing new fibres, which save water, energy, dyes and chemicals. The sustainability of brands is dependent on the transparency and activities of suppliers as the authenticity of products and price points are dependent on the brand-supplier relationship.
The sustainable approach also caters to reducing costly consumerism as it promotes a minimal lifestyle. The author adds that it saves vital energy, which is essential for every living being. The fashion apparels produced using a complex manufacturing process that uses a high amount of water, electricity and other energy sources.
Country Case:
Sustainable fashion is a famous fashion trend in the UK, where it is working on addressing the environmental price tag of the industry. The UK Government identified compressing issues and developed rules and regulations so that companies must follow the guidelines.
The supply chain operations are greatly influenced by rules and regulations which focuses on a sustainable business approach. The guidelines regarding measuring and reporting the environmental impact of companies were implemented from 1st April 2019 (GOV, 2019). The particular companies have been mentioned who should report on their international energy usage.
Large companies are given the responsibility to disclose their UK annual energy use and greenhouse gas emissions. The Climate Change Act (2008) has set a mitigation target where the UK will work to reduce the greenhouse gas emissions by 80% by 2050, and the new target expects the UK to bring all the greenhouse gas emissions to be net zero by 2050 (GOV, 2008). Besides environmental aspect of sustainability approach, the country has also focusing on improving society in general.
The National Minimum Wage Act (1998) ensures that suppliers or manufacturers associated with the industry is receiving a proper wage and can lead their life well (BBC, 2020). Brands are entitled to pay a certain minimum amount of money to worker per hour. The employees associated with the supply chain are likely to face risks while working.
The Health and Safety at Work etc., Act (1974) ensures the safety of every worker and protecting them against any health and safety risks (GOV, 1974). Following the risk management approach of the supply chain, legal risks can negatively impact the sustainable approach of a brand.
The risks must be mitigated as quickly as possible by considering four stages of risk management such as risk identification, analysis and probability and consequences, risk mitigation strategies and control and documentation. Risk Matrix can be applicable in such situation to understand the likelihood and impact of the risk.
The risk is of high impact and high risk, leading to negative consequences on the business. Risk and mitigation tactics commonly implemented by brands are innovative planning, flexible and secure supply chains.
Companies are expected to a safe working environment, and providing safety policy and risk assessment also ensures a developed workforce and also developed safety. The nation also has focused on the huge societal issue which is discrimination where brands need to treat everyone equally irrespective of age, sex, religion and more.
The Equality Act (2010) ensures everyone is given similar opportunities to work and should not be discriminated (GOV, 2010). Each of these legal approaches has derived brands to consider the change in sourcing and implementing sustainable opportunity.
Industry Case:
The global market dynamics of the fashion industry mostly related to sustainable fashion, where clothes are made out of recycled fibres. Over time, ethical and sustainable clothing brands in the UK has grown in number as customers are prioritising such brands over fast-fashion brands.
The above graph depicts the majority of the people who are interested in purchasing sustainable fashion, which transcends the demographic of millennials. This information also influences fashion brands to implement a sustainable strategy to the entire supply chain instead of just offering environmentally-friendly products.
Fanfare launches one collection in the year, which aligns with the sustainability approach against high consumerism. On the other hand, the brand redesigns the old clothes into new clothes (FANFARELABEL, 2021). The brand sources distinctive vintage pieces, mainly denim and outerwear and up cycles them to lavish clothing. The brand uses a mixture of sustainable new fabric fragments and completely recycled ones.
The designer team uses embroidery and embellishment from offcuts and production waste. The sourcing of such materials are done from high-quality fashion and interior design brands, however where such companies are located are not mentioned. The supply-chain offers packaging which is 100% recycled and biodegradable.
Inclusivity of the cloths are also great but it depends on the availability of stock and the quantity of dead stock fabric. Fanfare is partnered with various companies to overcome and eliminate modern slavery and plastic pollution.
A brand named Organic Basics manufactures sustainable and ethical basics, which includes accessories, activewear, underwear, t-shirts and tanks (ORGANICBASICS, 2021). The recycled fibres such as recycled nylon, recycled wool are sourced from Italy, and factories are in Austria, Turkey, Portugal and more countries.
The company offsets the carbon amounting to 100 Kg. On the other hand, the brand’s clothing items are available in XS-XL sizes, which caters to every body type and promotes body positivity. The company’s community and charitable services are conducted using Organic Basic Fund and Low Impact project. The company focuses on serving the triple bottom line.
It improves the environment by using recycled fibres. Whereas, people are also given financial opportunity to help secure their future, and the cloths are also available in vast size range. Last is profit gained by the company to a great extent as there are highly sensitive customers about the brand.
RubyMoon is a sustainable swimwear and activewear clothing not-for-profit company. The brand sources material, which is ECONYL from Ocean in partnership with HealthySeas.org. Every product is wholly recycled (RUBYMOON, 2021). The manufactures are either in Spain or in the UK, and bagsofsupport.co.uk handled their distribution.
The trainings are done safely, and a fair wage is given. The company has implemented nine out of seventeen sustainable development goals in business practices and produce 42% fewer carbon emissions. The company’s fabric recycling program send back old swimsuits and stretch fabric to use further.
It is the only non-profit swimwear brand globally, which means that entire profit is provided as loans to females to want to become entrepreneurs to break the cycle of poverty. Following the Triple-bottom line of sustainability, it does not focus on profit.
Conclusion and recommendation:
The report concludes that recycled fashion is a contemporary change in the international supply chain, which demonstrate the importance of sustainability. Sustainable fashion is highly in demand in the UK which is why a lot of brand is offering sustainable fashion and also promoting social integrity. Fast-fashion has led to leading compressing issues such as carbon emission, huge wastage of water and other energy resources and increasing landfills.
The statistics have shown that these practices will keep increasing and will cause harm to the environment. The UK has taken various approaches and developed legal rules and responsibilities in the the form of various acts such as the Climate Change Act (2008), the National Minimum Wage Act (1998), the Health and Safety at ,Work etc. Act (1974) and the Equality Act (2010).
Every UK based companies are expected to maintain their supply chain activities based on these rules. All of these country approaches have helped the brands shift to a sustainable business approach as it also provides a competitive advantage and greater profit.
The brands such as Fanfare, Organic Basics, and RubyMoon offer recyclable fashion items to everyone, promoting inclusivity, ensuring workplace safety, and engaging in charitable Work. The major change in sourcing recycled products has been a revolution in the fashion industry, saving the planet and its people.
The recommendations will be measuring the waste and using eco-friendly equipment in the supply-chain activities. A brand must measure how much waste is produced, including common waste products such as papers, water bottles, plastic cups, office supplies, paper towels and coffee pods.
After learning how the company produces much waste, it can consider taking approaches or develop strategies to make sustainable changes. Brands can weigh the waste produced for a week to know where the changes are needed for a more sustainable brand. After making some changes, waste should be measured again to see how much waste has reduced.
The brands can determine if they are on the right path or can make the required changes to reduce further changes. Eco-friendly equipment can make major changes in supply-chain management and help in establishing sustainable brands to stay relevant in the market. There are automatic switch systems and sensors fitted for lights that can be switched off to save electricity when space is not used. It also used to turning off heating and thermostats.
It also helps the company to reduce expenses. Besides that, reducing unnecessary energy consumption can be saved by making small changes such as setting sleep mode on the screen, utilising energy-saving modes and decreasing brightness. It might seem insignificant, but it is likely to have a big impact when it is done on a large scale. Therefore, these recommendations are given to the fashion brands, when incorporated, can help become more sustainable brands.
References
Awe, O., Kulangara, N. & Henderson, D., 2018. Outsourcing and firm performance: a meta-analysis. Journal of Strategy and Management, 01(01), p. 01.
BBC, 2020. Legislation. [Online]
Available at: https://www.bbc.co.uk/bitesize/guides/zcs4ng8/revision/3#:~:text=The%20National%20Minimum%20Wage%20Act,workers%20the%20national%20minimum%20wage%20.
[Accessed 11 May 2021].
BBC, 2020. Why clothes are so hard to recycle. [Online]
Available at: https://www.bbc.com/future/article/20200710-why-clothes-are-so-hard-to-recycle#:~:text=By%202030%2C%20we%20are%20expected,tonnes%20of%20textiles%20a%20year&text=Globally%2C%20around%2056%20million%20tonnes,160%20million%20tonnes%20by%202050
[Accessed 11 May 2021].
Ciccullo, F. et al., 2018. Integrating the environmental and social sustainability pillars into the lean and agile supply chain management paradigms: A literature review and future research directions. Journal of cleaner production, 172(01), pp. 2336-2350.
Esfahbodi, A., Zhang, Y. & Watson, G., 2016. Sustainable supply chain management in emerging economies: Trade-offs between environmental and cost performance. International Journal of Production Economics, 181(01), pp. 350-366.
FANFARELABEL, 2021. NEW IN , SHOP LATEST SPRING COLLECTION. [Online]
Available at: https://fanfarelabel.com/
[Accessed 11 May 2021].
GOV, 1974. Health and Safety at Work etc Act 1974. [Online]
Available at: https://www.hse.gov.uk/legislation/hswa.htm
[Accessed 11 May 2021].
GOV, 2008. Climate Change Act 2008. [Online]
Available at: https://www.legislation.gov.uk/ukpga/2008/27/contents
[Accessed 11 May 2021].
GOV, 2010. Equality Act 2010: guidance. [Online]
Available at: https://www.gov.uk/guidance/equality-act-2010-guidance
[Accessed 11 May 2021].
GOV, 2019. Measuring and reporting environmental impacts: guidance for businesses. [Online]
Available at: https://www.gov.uk/guidance/measuring-and-reporting-environmental-impacts-guidance-for-businesses#:~:text=From%201%20April%202019%2C%20quoted,and%20Carbon%20Report)%20Regulations%202018.
[Accessed 11 May 2021].
Jung, S. & Jin, B., 2016. Sustainable development of slow fashion businesses: Customer value approach. Sustainability, 08(06), p. 540.
Khan, M. & Islam, M., 2015. Materials and manufacturing environmental sustainability evaluation of apparel product: knitted T-shirt case study. Textiles and Clothing Sustainability, 01(01), pp. 1-12.
Ma, X. et al., 2020. Sustainable ultrasound-assisted ultralow liquor ratio dyeing of cotton fabric with natural turmeric dye. Textile Research Journal, 90(5-6), pp. 685-694.
McNeill, L. & Moore, R., 2015. Sustainable fashion consumption and the fast fashion conundrum: fashionable consumers and attitudes to sustainability in clothing choice. International Journal of Consumer Studies, 39(03), pp. 212-222.
ORGANICBASICS, 2021. Recycled Activewear. [Online]
Available at: https://uk.organicbasics.com/
[Accessed 11 May 2021].
RUBYMOON, 2021. About Us. [Online]
Available at: https://rubymoon.org.uk/
[Accessed 11 May 2021].
Sarkar, B., Ganguly, B., Sarkar, M. & Pareek, S., 2016. Effect of variable transportation and carbon emission in a three-echelon supply chain model. Transportation Research Part E: Logistics and Transportation Review, 91(1), pp. 112-128.
STATISTA, 2020. Share of consumers who prefer purchasing clothes from sustainable brands in the United Kingdom (UK) in 2020*, by age and gender. [Online]
Available at: https://www.statista.com/statistics/1169415/sustainable-fashion-choice-demographic-distribution-united-kingdom/
[Accessed 11 May 2021].
Thorlakson, T., de Zegher, J. & Lambin, E., 2018. Companies’ contribution to sustainability through global supply chains. Proceedings of the National Academy of Sciences, 115(09), pp. 2072-2077.
Know more about UniqueSubmission’s other writing services:
