What are the challenges and opportunities of sustainable supply chains in the fashion industry?

In high-street fashion and haute couture, an undercurrent of transformation is real, leading the industry towards a sustainable future. The Supply Chain of The Fashion Industry has witnessed progressive shifts and the tough challenges that lie in reducing this vibrant environmental footprint of the industry. This discourse seeks to unravel the fabric of sustainable supply chains in fashion, detailing not just the 'green' tapestry being incorporated but also the functional conditions faced in this change.

Each of these stages contributes to the environmental footprint of a product.

Design

Although the design phase might not appear extremely harmful to the environmental performance of a product, clothing design can have an influential impact on a product, as it dictates materials, manufacturing procedures, and product lifespan. Recent environment-positive inventions in design have multi-use garments which are becoming increasingly popular.

Raw materials and textile manufacturing

If people are concerned about their environmental impact, they cannot ignore the raw materials that are removed for their textile production. Today, many are popularizing the usage of organic and fair-trade materials, and some are creating waves with recycled materials and fibers.

Garment manufacturing

The greenhouse gas emissions that are made as a byproduct of manufacturing might not get as much attention as emissions from delivery fleets, but manufacturing procedures can be extremely resource and energy-intensive, demanding substantial amounts of cooling and heating water. If people are cutting down their footprint, it is important to research alternative production methods and start transitioning facilities over to renewable energy sources.

Distribution into stores

Historically, getting products to their final retail destination contributed greatly to the value chain effect and emissions. Lately, e-commerce emissions have taken some of the focus off this stage of the supply chain, but no matter where products are distributed, it is still necessary for fashion brands to optimize logistics, cut down on unnecessary miles, and enhance the energy efficiency of vehicles to decrease the impact of distribution emissions.

The challenges of sustainable supply chain management for fashion brands are: -

Addressing the environmental impact of the supply chain is not a simple or small undertaking. And for clothing brands in particular, it can pose some special challenges.

Fashion supply chains are complicated

Most supply chains are complicated, but in the fashion industry, this complexity is extreme — even though it might not seem that way on the surface. The complicatedness of fashion supply chains comes from their tiered nature; each supplier people engage with engages suppliers of their own, resulting in a supply chain including multiple tiers. Tier 1 suppliers source from Tier 2 suppliers, and so on.

When calculating the final result of a product, people need to view every link in the chain.

The sheer complexity and size of apparel supply chains make supply chain management alone very challenging, without adding environmental performance to the mix.

It is difficult to hold vendors accountable

With so many vendors in the supply chain, it is challenging to set universal criteria for environmental performance, and even more difficult to confirm they are upheld across the board. For brands operating on the sustainability of their products, a supply chain analysis may show that switching suppliers is the fastest way to lower environmental effects, rather than demanding vendors to switch to meet new standards.

Fashion needs fast turnarounds

The famously short product cycles and ever-shifting market needs mean that the supply chain requires fast change, and sometimes new products, suppliers, and materials require to be brought on quickly. While traditional supplier and material evaluations might concentrate on cost and quality, brands focused on handling their environmental impact must also evaluate potential suppliers from a sustainability lens. With cost and time conditions putting pressure on the procurement process, it can be challenging for brands to maintain high standards for environmental performance across their supply chains.

The opportunities for sustainable supply chain management for fashion brands are:-

Enhanced brand image

As more brands are analyzed for their negative environmental impact, setting high standards for the environmental performance of products is one method to stand out completely in a crowded industry. ‘Green’ is an increasingly popular label, and brands that take a strong stance on sustainability and social influence can become status symbols in the age of conscious consumerism.

A better brand image is its reward, but it also obtains co-benefits of better talent investment and retention improved investor interest, and better sales performance.

Increased market share

Consumers are more committed than ever to decreasing their carbon footprints and leaving a lasting positive influence on the environment and have made significant lifestyle shifts to enhance their environmental impact, and the usage of sustainable materials when making a purchase. If people can enhance the environmental performance of their products, and communicate their impact clearly, their market share will reap the benefits.

Financial benefits

Although ‘greener’ might not forever mean ‘cheaper’, many companies will discover that shifting to eco-friendly materials and environmentally responsible suppliers also has a positive impact on their bottom line. Also, the procedure of performing thorough life cycle assessments and supply chain analyses often indicates opportunities for improving efficiency and cutting down on costs.

Market leadership

Brands that master their supply chain sustainability and learn to convey that story well are set to become market leaders in their categories. Pioneering brands can set new standards for consumer expectations, influence competitor performance, and increase the standards for their suppliers, driving the entire industry forward as a result, and achieving results at a scale far beyond their direct functions.