Supply Chain Management: Sustainability Challenges in Fashion Report

This report critically examines the challenges facing modern supply chains, with a specific focus on the fashion industry. It explores the increasing complexity and global nature of supply chains, emphasizing the need for businesses to respond to emerging challenges. The report delves into the sustainability issues within the fashion supply chain, covering economic, environmental, and social dimensions. It highlights problems such as poor working conditions, environmental pollution, and ethical concerns. The report provides recommendations for improvement, including the use of eco-friendly materials, recycling, and adherence to sustainability standards. The report concludes that addressing these challenges is crucial for the long-term viability of the fashion industry and offers insights into how companies can implement positive changes.

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Contents
Introduction................................................................................................................................2
Sustainability in the supply chain..............................................................................................3
Sustainability in the fashion supply chain..............................................................................4
Sustainability issues in fashion supply chain.............................................................................4
Economic sustainability issues...............................................................................................6
Environmental sustainability issues.......................................................................................6
Social sustainability issues.....................................................................................................7
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
In the dynamic environment, this has been found that supply chain management is considered
as the critical function for any kind of business. The rising complex as well as the global
nature of supply chains is considered as organisations requires responding to new or
upcoming opportunities and challenges with the motive to remind the competitive nature. The
aim of the report is to critically determine both the present challenges as well as trends that
might lead to the exploitation in the near future. It major include the key challenge facing
modern supply chains with the major focus on the Sustainability issues in fashion supply
chain. It has been found that fashion industry is growing consistently and with this they have
witnessed the major sustainability issues in supply chain. All these issues are witnessed in the
paper with the recommendations to deal with the issues.

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Sustainability in the supply chain
As per the view of World commission on Environment and development, sustainability is
majorly well-defined as the expansion that accomplish requirement of current without
cooperating skill of upcoming generation that contributing in meeting their requirements. It
becomes essential for the different industry dealing in the global environment to follow the
sustainability in supply chain, which is a movement of product from supplier to final
customer. In the global environment there are many industries as well as companies who
ensure to maintain the sustainability in their supply chain operations such as automobile
industry, oil industry, retail industry and many others (Mora, Rocamora and Volonté, 2014).
It has been found that these industries are also dealing with the wide range of issues linked to
sustainability in supply chain. For instance; automotive manufactures like GM, Honda, and
Toyota dealing with the environmental problems such as excessive release of gas, use of
toxic substance and that results in the manufacturing of the products. The below given are
some of the facts: -
(Source: Sustain Your Style, 2019)
Along with this, many other company deals with issues like Oil industry which deals with
most of the environmental sustainability issues by using excess of natural resources.
Considering these industries, the further discussion will be carried on sustainability issues
faced by fashion industry (Diabat, Kannan and Mathiyazhagan, 2014).

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Sustainability in the fashion supply chain
The worldwide textile industry intake is predicated to additional than 30 million tons in a
year that major occur due to the thoughtful environmental, social influence that occur within
supply chain management. It has been witnessed that the sustainability issues are considered
as the vital to fashion industry. In search of little manufacture prices, the companies that
perform the fashion in apparel takes the benefit of the lower ecological consciousness with
the looser controlling scheme of the environmental in most of the developing countries. Most
of the fashion brands like Benetton, Adidas as well as C&A are liable to form their
unsustainably supply chain. The fact is accepted by the numerous fashion businesses like
H&M, Uniqlo, The North Face and New balance that sustainability plays a vital role in the
business which is further integrate green practice into their supply chain (Vural, 2019). It
becomes essential for the businesses in fashion industry to consider issues related to
sustainability in supply chain. SSCM requires consideration of the three major dimensions
that include economy, surroundings and civilization while managing SCM in fashion
industry.
Sustainability issues in fashion supply chain
The issues related to the sustainability problems in fashion chains are extremely rely on the
particular features of industry. The production as well as sourcing segment majorly
responsible due to the poor working conditions, improper safety at the workplace as well as
problems linked with the forced child labor. It has been found in the research that fashion
supply chains were one of major industries that are faced by the industries after child disgrace
that was majorly exposed in supply of Nike by the year 1990s. There was absence of the
environmental events at dealers majorly in the global market. The table given below reflects

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the diverse kind of sustainability problems that can be witnessed in supply chain of the
fashion industry.
Sustainability problems in supply chain
Sustainability dimensions Supply chains Fashions supply chains
Economy Customer loyalty
Reliability of suppliers
Cost reduction
Increased returns
Financial capital
Shareholder value
Assuring the quality
Reuse, Recycle and Returns
Labour relocations
High potential of innovation
Fast turnover
Valuable names of brand
Labour-intensive
Highly competitive market
(Ahi, and Searcy, 2013)
Environmental Waste reduction and
management
Use of materials and
resources
Reduction of negative
impacts
Pollution prevention
(Khurana and Ricchetti,
2016)
Cotton production
Chemical dependence
Land pollution
Water pollution
Toxic waste production
Society Working conditions
Positive impact on society
Human rights Increased
Lack of workplace safety
Social responsibility
campaigns

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Diversity in work force Child labor
Economic sustainability issues
The term economic sustainability issues include the capability of the company to maintain the
long-term benefits as well as profit in the market that include the effective financial, tangible
and intangible elements (Gimenez, Sierra, and Rodon, 2012).
In the fashion industry some issues linked to the economy of the county are also witnessed
that occurred due to loss of wide range of jobs due to relocating of manufacturing in Europe
to Asia which is considered as one of the way of basis of employment majorly in Asian
developing economies. Along with this, it has been witnessed that apart from the luxury
segment, fashion industry is measured as the small value production industry majorly when
the entire market has the intense price based competition (Ahi and Searcy, 2015). However, it
has been witnessed that there is possibility of the high innovation potential which remains
high as the European fashion producers contribute in the innovation and technology side of
industry along with innovative methods, skilled-workforce and new techniques.
Environmental sustainability issues
The environmental sustainability is considered as the operations that are performed by the
businesses keeping the cost-saving and effective utilization of resources. The environment
sustainability in managing of supply chain is determined with help of diverse stages such as
product design, substantial allocation and obtaining, manufacture, distribution and many
others (Bhardwaj and Fairhurst, 2010).
It has been witnessed that the consumption of the apparel with the change in trends and
design are continuously improving which leads to the direct influence on the supply chain
management. The question that has been raised includes waste production, consumption of

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the resources as well as the influence of the pollution in terms of the fashion industry. It has
been found that major issue of environment sustainability is linked to the pollution and use of
water that exists while maintaining the processes of these products by the customers
(Saicheua, Knox and Cooper, 2012, June). Along with this, fast fashion producers lead to rise
in the preferences of consumer as well as lead to change those results in waste to be returned,
reused or recycled. In addition, most of the garments that are manufactured are directly
dumped into the rivers that involve untreated toxic (lead, mercury, and arsenic, among
others). Thus, this lead to the issue of aquatic life and health of the million people living get
affected. The below given are some of the facts: -
(Source: Sustain Your Style, 2019)
Social sustainability issues
Social sustainability is defined as the impact of the business on the social systems as well as
on their association with stakeholders. The elements of community sustainability linked with
the supply chain include respect to diversity, health as well as safety conditions, social
responsibility and many others (Gimenez, Sierra and Rodon, 2012).
In the fashion supply chains, the major social issues are attributes to complex, long as well as
the highly segmented nature. It has been found that suppliers of the fashion brand are consist
of the different tiers as well as the processes of manufacturing of finished garments which is

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segmented among the subcontractors multi-tier that are in charge of ironing, printing, and
many others (Hammervoll, Jensen, and Beske, 2012). These complex generally takes place in
the market of Asia because the company get easy and cheap labour. Along with this, the
supply chain of the fashion industry involved child labour and forced labour. In the Asian
market, the workforce that is majorly employed by the fashion industry include low-educated
women that belongs to the rural areas with the lack of essential bargaining power in opposite
of their employees. The rights of the women’s are not protecting when they perform the
functions of manufacturing or sourcing or supplying the products in the market due to lack of
regulations. Thus, this clearly shows that the companies who are getting products
manufactured from the Asian market are following the unethical practices majorly for the
production purposes. This has been found that poor wages is one of the major issues which
leads an issue of sustainable society. Moreover, the fashion company who get their products
manufacturer are not concern about the health of the workers.

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Recommendations
It has been witnessed that the fashion industry leads to the disastrous influence on the
environment and this is the reason it is considered as the major contaminator in world just
behind oil industry. Considering the issues, it has been high time when the companies in
fashion industry need to adopt solutions as well as alternative to deal with problems. The
major step includes forming awareness as well as willingness to bring the change. However,
the fact is that these problems vary from company to company so every company should
ensure that they implement changes as per their own company. The below are some of the
recommendations considering the brands dealing in fashion industry.
 It is suggested to the companies involved in the fashion industry to use eco-material
production is considered as one of essential segment of sustainable fashion supply
chain that is often made by the organic fabrics that are manufactured with the less use
of harmful chemicals as well as water that contribute in improving the environment
resources. Some of the company like Hong-based Esquel has started producing
products like cotton shirts with organic fabric.
 It is suggested to the company to reuse and recycle the material that consists of old
clothes, manufacturing scraps and bottles for maintaining sustainability in fashion
industry.
 It is suggested to the companies in fashion industry to adopt the sustainable practice
with ISO 14000 standards in their supply chain. The verification of ISO 14000 depicts
that companies have formed their eco-friendly linked processes as well as effort flows
in production processes (Shen, 2014).
 The companies in brand ensure that they maintain the green retaining that means they
make the customers to purchase the products that are majorly eco-fashion.

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 It is suggested to the fashion brands to make use of effective technology with the
motive to decrease waste like H&M who executed energy and resource management
scheme that allows them to manage the operation with least environmental impact.
 The companies should have proper implications of legal and health regulations in the
developing nations to meet the economic as well as social sustainability.
Conclusion
In the end of the report, this can be concluded that SCM is basic function which is adopted by
every company but most of the companies or industries deals with sustainability problems in
SCM. The major focus is done of the Sustainability issues in fashion supply chain which are
defined specifically founded on triple bottom line that include economic, environment and
society. The issues related faced by the companies in the fashion industry are highly which
shows that it high time for the companies to take required steps. In the end of the paper, some
of the recommendations are given to the companies who are dealing with the problems of
sustainability while managing the supply chain.

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References
Ahi, P. and Searcy, C. (2013) A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of cleaner production, 52, pp.329-341.
Ahi, P. and Searcy, C. (2015) Assessing sustainability in the supply chain: A triple bottom
line approach. Applied Mathematical Modelling, 39(10-11), pp.2882-2896.
Bhardwaj, V. and Fairhurst, A. (2010) Fast fashion: response to changes in the fashion
industry. The international review of retail, distribution and consumer research, 20(1),
pp.165-173.
Diabat, A., Kannan, D. and Mathiyazhagan, K. (2014) Analysis of enablers for
implementation of sustainable supply chain management–A textile case. Journal of cleaner
production, 83, pp.391-403.
Gimenez, C., Sierra, V. and Rodon, J. (2012) Sustainable operations: Their impact on the
triple bottom line. International Journal of Production Economics, 140(1), pp.149-159.
Gimenez, C., Sierra, V. and Rodon, J. (2012) Sustainable operations: Their impact on the
triple bottom line. International Journal of Production Economics, 140(1), pp.149-159.
Hammervoll, T., Jensen, L.M. and Beske, P. (2012) Dynamic capabilities and sustainable
supply chain management. International journal of physical distribution & logistics
management.
Khurana, K. and Ricchetti, M. (2016) Two decades of sustainable supply chain management
in the fashion business, an appraisal. Journal of Fashion Marketing and Management, 20(1),
pp.89-104.