Impact of Quick Response Strategy on Sustainable Fast Fashion Supply Chain and Its

Challenges in Indonesia
Ni Putu Cista Deviutami Sukma1
1
09111640000073; Institut Teknologi Sepuluh Nopember Surabaya

1. Introduction
Fast fashion industry characterized as an industry with short lead times, faster inventory
movement, uncertainty in demand and high customer demand (Turker & Altuntas, 2014). As
the industry passed through several stages of supply chain from manufacturers where the fiber
and apparels are produced to their warehouses until it reached the customer in a particular retail
shop, they need to make sure that this stages happened in a short time to make sure that the
customers wouldn’t missed out the trend in the runway (Quantis, 2018). Throughout the year,
fast fashion industry has going through a tremendous growth. But, despite the fast growth of
the industry, it has a downside for sustainability of the environment (Todeschini, Cortimiglia,
Callegaro-de-Menezes, & Ghezzi, 2017). This industry has a great impact on environment as
it become the second largest polluter in the world and continued to receive global awareness.
According to Quantis (2018), this industry gives an impact of 35% climate change by 2005 to
2016 and are projected to continued increasing until 2030 if a business-as-usual scenario
prevails. Thus, due to the negative impacts, fast fashion industries became more aware of the
importance of sustainable development in the economy, environment and society as they
started to campaign green marketing to affect customer’s image on their products (Li, Zhao,
Shi, & Li, 2014).
Responding to the environmental impact fashion industries bring, they developed a
various new business model innovation in order to decrease those impacts. Quick response is
one of the innovation on these industries business model. Quick response by definition is an
inventory management practice in which emphasizes on cooperative efforts among every
echelon in supply chain, flexibility and product velocity in order to face the volatility of
industry (Barnes & Lea-Greenwood, 2006; Bhardwaj & Fairhurst, 2010; T. Choi, 2017). This
strategy is widely adapted in fast fashion industry, as this industry has a lot of inventories (T.
Choi, 2017). Quick response strategy emphasizes on how to distribute in a shorter lead times
and is widely used globally especially in Europe and America. This strategy relies a lot on
technology which called Quick Response Technology (QRT), thus a firm needs to have an
adequate technology and knowledge capability in order to applied this strategy (Ko & Kincade,
1997).
 The fact that Indonesia apparel industry as a developing country is also in a positive
growth, negative environmental impacts has also been a problem for the industry to solve. As
a lot of fast fashion brand emerge in Indonesia, such as The Executives and Lea, this industry
contributes 18.5 percent to the national economic growth in creative industry sector (Best
Present Guide, 2018). Due to a deep influence from Europe and Asian cultures, Indonesia fast
fashion developed even faster as Indonesian consumer wants to stay with the current trends.
The rise of Indonesian middle class segment also become a factor that influencing the
development of fast fashion industry in Indonesia. (Susanti, 2017) states that fast fashion
industry’s production activities in Indonesia also produced the same environmental impact on
water and air. Thus, it can be concluded that Indonesia fast fashion industry also feel the same
pressure and demand of environmentally conscious products.
In this paper, the author would like to identified the possibility of applying quick
response strategy in any echelon of supply chain and then create a sustainable supply chain out
of it. Thus, the author focus on two main questions such as the impact of applying quick
response strategy in creating sustainability of fast fashion supply chain and challenges
Indonesia as developing country has to face when applying quick response strategy in its fast
fashion industry. This focus considers the urgency of production responsibility that the industry
has to applied in order to decrease negative environmental impact that they’ve produced and
the application of this strategy both in developed and developing countries.
Furthermore, this paper consists of 5 sections, where section 1 summarizes the urgency
and objective of this study and continued by the definition of the scope of this study in section
2. Then section 3 will briefly explained about the methodology of this study which will focused
on literature review. Specifically, section 4 will analyzed what is the impact of quick response
strategy in creating sustainable fast fashion supply chain in the industries, and also provide the
readers a benchmark between strategy application in developed and developing countries to
further identified what challenge might developing country face in order to applied the strategy.
It will then conclude in section 5, in which the author provides the further research available
related to the topic.

2. Scope
The results presented in this study are based on literature review research and video
research with the object of fast fashion industry that applied quick response strategy in its
sustainable supply chain. The focus of object in this study is fast fashion industry in developing
country by looking at its difference to developed country. The study considers Indonesia as the
specific object of fast fashion industry in developing country.
The scope of the study is analyzing the impact of quick response strategy that Indonesia
fast fashion industry applied in their sustainable supply chain. The study explained the
challenges on applying quick response strategy through benchmark method to compare with
the current condition of Indonesia fast fashion industry. The study focused on the impact of
quick response strategy since the last two decades in order to see how the strategy developed
overtime.
The scope does not include the other factors that affecting the sustainable supply chain
such as social and economic. Thus, it might influence the recommendation for the object
studied and should be considered. This study only considers environmental sustainable supply
chain performance in a fast fashion industry that have applied quick response strategy and
challenges in fulfilling the requirements to applied this strategy.

3. Methodology
As it states in the scope of this study, the author has reviewed 15 papers published in
the recent decade (2016-2019). Regarding the searching and the selection criteria for papers,
the author focused on the dominant operations research, including Omega, International
Journal of Logistic Management, International Journal of Retail and Distribution Management,
International Journal of Production Economics, Transportation Research Part E, International
Journal of Physical Distribution and Logistic Management, Journal of Fashion Marketing and
Management, Sustainability, Clothing and Textile Journal, and International Review of Retail,
Distribution and Consumer Research. The author generated a search with keywords “quick
response strategy”, “impact of quick response strategy” and “fast fashion supply chain”
Then, in order to fit the scope in the paper, the author used x categories of publications
that employ quick response strategy on sustainable fast fashion supply chain: i) Those
considering QR impacts on the sustainability of fast fashion supply chain directly (Like T.-M.
Choi, 2013; T.-M. Choi & Li, 2015; De Brito, Carbone, & Blanquart, 2008; Nagurney & Yu,
2012; Shen, 2014; Yang, Qi, & Li, 2015); ii) Those considering QR strategy implication in fast
fashion supply chain (Like Bhardwaj & Fairhurst, 2010; Birtwistle, Siddiqui, & Fiorito, 2003;
Bruce & Daly, 2006; Christopher & Towill, 2002; Jin & Moon, 2006; Kim & Johnson, 2009;
Ko & Kincade, 1997; Macchion et al., 2015); iii) Those implying QR as one of the solution
that firms can applied (Like Yang, Qi, & Li, 2015). This categories also differs to 2 sub-
categories, including: i) Practice in developed countries and globally (Like Barnes & Lea-
Greenwood, 2006; Bhardwaj & Fairhurst, 2010; Birtwistle et al., 2003; Christopher & Towill,
2002; De Brito et al., 2008; Ko & Kincade, 1997); and ii) Practice in Developing countries
(Like (Jin & Moon, 2006). Table 1 illustrates the statistics of the collected papers in each
journal. The majority of selected paper are published in quartile 1.
Therefore, the author use 15 papers that are proper in building the research while adding
video review related to the topic intentionally to create a more comprehensive findings. This
classification strategy aims to create a simple structure for readers to follow and understand
what the impact of quick response strategy in fast fashion industry also the challenges of
implication in developing countries.
Table 1. Statistic of collected papers

Journal Scopus Quantity

Omega Q1 1

International Journal of Logistic

Q1 1
Management

International Journal of Retail and

Q1 2
Distribution Management
International Journal of Production
Q1 3
Economics
Transportation Research Part E Q1 1
International Journal of Physical
Q1 1
Distribution and Logistic Management
Journal of Fashion Marketing and
Q2 2
Management: An International Journal
Sustainability Q2 2
Clothing and Textiles Journal Q3 1

International Review of Retail,

Q3 1
Distribution and Consumer Research

Total 15

4. Discussion
According to table 2, the author has reviewed 15 papers and differs them from several
category scope of topics for each paper, including focus object, quick response strategy, impact
of quick response to sustainability, fast fashion industry or other industry. The categorization
aims to have an easier way to construct an analysis from out of it.
The author concluded that quick response strategy has been a dominant theme in the
fashion industry. Quick response strategy refers to a strategy to shorten lead times of a supply
chain. Ko & Kincade (1997) said that quick response strategy could optimize the flow of
information and merchandise in a supply chain in order to compress lead time, effective
information management, dynamic planning and strategic planning. Thus, Quick response
strategy has a role in terms of logistic and distribution of products in a supply chain in order to
give benefits of short lead time and effective information distribution. The author states a
proposition, in which, a firm who applied quick response strategy might need another
combination of sustainable strategy to enhance the direct impact, as the strategy itself only
produces indirect impact from the decrease stock to the number of apparel left unsold.
Table 2. Categorization of Paper Based on Scope
Scope

Author Focus Object Quick Impact of QR Fast

Other
Response to Fashion
Industry
Strategy Sustainability Industry
Yang et al (2015) Global ● ● ●
Bruce (2006) Global ● ●
Choi (2015) Global ● ● ●
Christoper (2002) USA and Global ● ●
Ko (1997) USA ● ●
Macchion (2015) Global ●
De brito (2018) Europe ● ● ●
Birtwistle (2003) UK ● ●
Shen (2014) H&M ● ● ●
Choi (2013) Global ● ● ●
Nagumey and Yu (2012) Global ● ● ●
Barnes (2006) UK ● ●
Bhardwaj (2010) UK ●
Kim (2009) Global ●
Jin (2006) Korea ● ●
The author also elaborate more insight from video review on the application of Quick
response strategy and what factor will give the biggest impact in fast fashion industry. Table 3
refers to the categorization of video review. It is found according to BBC Earth (2019), in
appendix 1, about the main issue about fast fashion industry, is that they produced leftover
from the production while each production give environmental impact due to the chemical
reactions. Furthermore, the author concluded that a fast fashion industry supply chain need to
be more accurate on their demand prediction in order to provide the right apparels with short
lead times and to make sure that their stock matches the demand of market.
 Table 3. Categorization of Video review
Scope

Author Focused Object Quick Impact of Fast

Other
Response QR in Fashion
Industry
Strategy Environment Industry

Berman (2017) Zara in Global ● ● ●

Riccoboni (2017) Global ●

Real Human Stories

Zara in Global ● ● ●
(2011)
BBC Earth (2019) Global ●
Bruce (2006), Christoper (2002), De Brito (2018), and Birtwistle (2003) refer to quick
response strategy as a solution to the leftover issue as this strategy provide an almost accurate
demand prediction which aim to reduce both excess stock holding in the supply chain to
lowered their inventory levels and shorten the lead time. Alex Berman (2017) and Real Human
Stories (2011) in their video also emphasizes on how Zara can replenish their collection in a
week by applying quick response strategy with just-in-time concepts. This strategy brings Zara
to be more stock efficient, as they only focused on producing the latest trend and directly
replenished what’s in their store so they don’t use a lot of inventories. They also produces a
significant number of production for each trend they made which adjusted from the quick
response technology in order to reduce leftover. Thus, the author concluded that from applying
quick response strategy along with just-in-time concept, a firm can reduce its leftover stock
and reduced the stock level itself which will lessen the production activities and later give an
impact on lessen the chemical being produced from those activities. Then, the impact of
applying quick response strategy also explained in (Birtwistle et al., 2003; T.-M. Choi & Li,
2015; MacCarthy & Jayarathne, 2010), which are: increasing sales volume, reduced
markdowns, reduced stockout, reduced cost and prices, greater price validity in retail store,
improved financial performance and increased competitiveness, shorter development cycle
time and increase stock turnover rate.
Furthermore, the impacts of quick response strategy are being concluded to providing
a precise demand forecasting in order to produce in the right amount of products and in shorter
lead times. The concluded impact is analyzed in order to find the environmental impact from
quick response strategy. The author concluded that the firm can decrease the amount of
chemical produced each production and lowered the distribution cost that will lessen the carbon
footprint produced by the company (T.-M. Choi & Li, 2015). Also, from the impact of shorten
the distribution cycle, quick response strategy can reduce handling and lessen distribution cost
through picking an efficient transportation mode which will later affecting the decrease amount
of carbon footprint produced (Birtwistle et al., 2003; Nagurney & Yu, 2012).
The challenges in applying the quick response strategy are identified such as: more
dynamic and volatile demand, more complex consumer desire of low cost and flexibility in
design while also demanding for the best quality of apparel in short pace, create an integration
in collaboration between every echelon in supply chain including retailer, manufacturer and
the focal firm in order to aligned this strategy, and the high investment amount in technology
to implement quick response strategy (Bhardwaj & Fairhurst, 2010; Bruce & Daly, 2006; Kim
& Johnson, 2009; Ko & Kincade, 1997; MacCarthy & Jayarathne, 2010). Those challenges are
concluded from paper which focused mainly on USA and Europe.
In order to identified the challenges Indonesia should face, the author do a benchmark
with developed country in Asia and current condition in Indonesia as the developing countries.
According to Jin & Moon (2006), countries in Asia have started to applied quick response
strategy and invest on its technology. Jin & Moon (2006) also refers that in applying the
strategy in South Korea, firms started to realize that the strategy can increase competitive
advantage in term of responsiveness and thus developing the knowledge know-how in term of
the strategy. Compare to Indonesia, Indonesian firm barely know the whole process of quick
response strategy and still using a basic technology such as POS in their business process.
Indonesia fashion industry also still relied on traditional forecasting even though some have
transformed digitally based on Industrial Ministry Roadmap to Industry 4.0. Thus, the
development knowledge realization of quick response strategy is the challenge Indonesian firm
should face as a developing countries.
The author also assessed a benchmark based on Birtwistle et al. (2003) American quick
response implementation level to the current condition in Indonesia, such as:
a. The first stage requires the firm to create functional implementation on suppliers and
retailers using electronic point of sale (EPOS) equipment with bar code scanning. It is
required for a firm in this stage to establish database within the internet system to make the
access easier. In this level, fast fashion industries with scale above the medium have applied
this digitalization stage. Meanwhile, as Indonesia is still in the development and
transformation stage in order to fully applied digitalization in every industry, Indonesia has
a challenge in facilitating the transformation by broaden the access of internet and giving
capital for industries to invest in quick response technologies.
b. The second level, retailers must redesign their internal stock processes and are expected to
begin to implement automatic replenishment method. Method like advance shipping is
 essential in this level in order to plan for the average stock. In this level, fast fashion
industries in Indonesia face the challenge in the guidelines to redesign their internal stock,
however, through online platform such as Zalora, Indonesia could applied an advance
shipping method to later plan the average stock needed.
c. The third level, the concept of the integrated supply chain is implemented and the partners
measure their achievement in terms of total supply chain effectiveness in meeting consumer
needs. In this level, fast fashion industries in Indonesia also need some guideline and
contract management in order to reduce the risk of implementation. The large area that
Indonesia covers might be a challenge for a firm to create an integrated supply chain as it
needs a great infrastructure and logistic system for the process.

5. Conclusion
As the fast fashion industries keep growing, they have to take environmental issues as
a great concern on their production activity. The main issues of leftover clothes and the
chemical or even other waste produced from each echelon in fast fashion supply chain should
be taken for consideration within the industries. Quick response strategy is one of the
innovation that is widely used in fast fashion industry in order to manage inventories by
providing a high accuracy of demand prediction. Aside from impact to the increasing of sales,
applying quick response strategy also give an environmental impact to the firm applied it. The
environmental impact from applying quick response strategy was due to the strategy goals in
providing a precise demand forecasting in order to produce in the right amount of products and
in shorter lead times. Later, the firm can decrease the amount of chemical produced each
production and lowered the distribution cost that will lessen the carbon footprint produced by
the company (T.-M. Choi & Li, 2015). Also, from the impact of shorten the distribution cycle,
quick response strategy can reduce handling and lessen distribution cost through picking an
efficient transportation mode which will later affecting the decrease amount of carbon footprint
produced (Birtwistle et al., 2003; Nagurney & Yu, 2012).
In applying this strategy, there are challenges in applying the quick response strategy
that is mainly focused on firm in USA and UK such as: more dynamic and volatile demand,
more complex consumer desire of low cost and flexibility in design while also demanding for
the best quality of apparel in short pace, create an integration in collaboration between every
echelon in supply chain including retailer, manufacturer and the focal firm in order to aligned
this strategy, and the high investment amount in technology to implement quick response
strategy (Bhardwaj & Fairhurst, 2010; Bruce & Daly, 2006; Kim & Johnson, 2009; Ko &
Kincade, 1997; MacCarthy & Jayarathne, 2010). Meanwhile, in developing countries which is
Indonesia, the author assess benchmark method to identified the challenges in applying quick
response strategy. From a benchmark with developed countries in Asia, it is known that
Indonesia has to face a challenge in the development knowledge realization of quick response
strategy is the challenge Indonesian firm should face as a developing countries. The
identification of the challenge also assessed by benchmark with America quick response
implementation system, where it is found that Indonesia face challenges in facilitating the
transformation by broaden the access of internet and giving capital for industries to invest in
quick response technologies, availability of guidelines to redesign their internal stock, and
development of infrastructure and logistic system to cover the whole Indonesian area.
Thus, this study has given a new insight on environmental impact of applying quick
response strategy in fast fashion industry and challenges that Indonesia as a developing country
might face. It is later known that the author proposition of the need of combination in applying
quick response strategy to enhanced the environmental impact is true. This is due to the reason
that quick response nature is only focused on inventory and by doing only this strategy the firm
can only got an indirect impact out of it. And so, to shift this nature and to give more direct
impact environmentally, the firm needs combination of other strategies such as Just-in-Time
or carbon footprint framework to enhance more direct environment impact from the quick
response strategy.
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Appendix 1. Video Review: Scope and Topic

Scope
Focused Quick Impact of QR Fast Fashion Other Industry
Author Topic
Object Response in Industry
Strategy Environment
Alex Berman (2017) Zara in Global ● ● ● Zara implied Quick Response Strategy with the concept of
Just-in-Time. This has give an impact on Zara response to
new trend by only providing few stocks. The sustainable
impact of the supply chain is the decrease of transportation
cost from manufacturers to warehouses and the amount of
leftover apparels in the store (source:
https://www.youtube.com/watch?v=I8_gmYNCQ1g)
EFT Supply Chain Global ● It refers on the ever changing behavior of customers
Intelligence (2017) especially in the digitalized era as the retail function is
transforming to be a showroom and customer change their
buying platform to online platform. Fast fashion industry
also faced a challenge to provide a match demand and follow
the current trend on their design (source:
https://www.youtube.com/watch?v=Z18pg4G6HF4)
Real Human Stories Zara in Global ● ● ● Zara has 104 new seasons due to the Quick Response
(2011) strategy they applied. It is also stated that Zara has
decreased leftover apparels in the store and warehouse by
having storage for just 72 hours long (Source:
https://www.youtube.com/watch?v=qhCM0F81vEg&pbjrel
oad=10)
BBC Earth (2019) Global ● 100 billions of items of clothing produced globally using
various of different chemical for each production. This has
given a serious impact in polluting the water and air. The
research also showed that 60% of the apparels ended up
unsold within the next 12 month (source:
https://www.youtube.com/watch?v=ZoiU8sprXpQ)