ttp://idea-space.eu:19001/up/a29450dbbdf97bb9c2edc8ace6a2b06e.pdf Sustainability

Question

ttp://idea-space.eu:19001/up/a29450dbbdf97bb9c2edc8ace6a2b06e.pdf Sustainability is significantly important for fashion business due to consumers’ increasing awareness of environment. When a fashion company aims to promote sustainability, the main linkage is to develop a Sustainable Supply Chain. Explain with elaboration the meaning of a Sustainable Supply chain (SSC) - Please explain it in detail (in your own words) not just stating its definition using the academic facts stated in the case. Extrapolate from the case study how H&M managed to implement successfully its SSC in areas of: Eco-Material Preparation Sustainable Manufacturing

Explanation / Answer

Traditional supply chain metrics were always about efficiency – lower cost, just in time delivery, shrinking transportation times and agility. This definition considers aspects only relevant to organization’s profitability and growth, but ignores impact on social and economic implications of that very supply chain. With increasing awareness among consumers and increasing environmental costs of these supply chains, organizations are moving towards Sustainable supply chain practices. Along with efficiency parameters,

I would define Sustainable supply chain as - Supply chain incorporating features and requirements generating climate positive value, leading towards circular and renewable fashion, and resulting in wellbeing at all three levels and aspects: social, environmental and economic.

For Fashion, sustainability is even more relevant considering changing global consumer trends (increasing consumption, reducing product lifecycles) combined with manufacturing practices involving heavy use of chemicals, low standards at manufacturing facilities. Thus sustainable supply chain should focus on reducing the energy needs and improving a. Raw materials, b. Manufacturing and production processes c. Distribution and in-store activities and d. Recycling

As part of Eco-material preparation, H&M focused starting from better production practices to changing consumer practices. In production and raw material input, H&M has shifted to Organic cotton which doesn’t use pesticides. Traditional cotton growth involves heavy use of pesticides and by moving to organic cotton, the negative impact of usage of chemicals is taken out of supply chain. H&M has collaborated with BCI (Better cotton initiative) to educate the farmers, saving water practices and maintaining the quality of output. Along with organic cotton, H&M adopted using recycled polyester, recycled polyamide, recycle wool etc in their production reducing water needs. Along with H&M focused on standards to ensure there is no product quality degradation because of these measures.

For other companies looking at sustainable eco material preparation, organizations should start from breaking down the raw materials and going through the current practices in producing them will help in identifying candidates where changes are required. Options like new methodologies for production, finding suitable alternatives, recycling ingredients can be looked at. Collaboration seems to be the way forward in adopting sustainable supply chain measures because of the fear of a loss of commercial control and competitive advantage by working closely with other companies. Along with internal changes, industry shall focus on defining standards so that there is uniformity in the practices and results are measurable .

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