Professional Documents
Culture Documents
SCM - Assignment 2
SCM - Assignment 2
Faculty Guidance By
Mr. Devindra Nagar
Submitted By-
Divyangi Batar
Namashya Sahoo
Priyal Raval
Sharika Negi
Stuti Monga
Tushar Gautam
Vanshika Jain
Abstract
The fashion industry stands as one of the most significant contributors to environmental
degradation, marked by excessive resource consumption, pollution, and waste generation. This
research paper explores the efficacy of sustainable supply chain practices in addressing these
environmental challenges, focusing on two prominent brands, Nudie Jeans and No Nasties.
Through an extensive literature review and case study analysis, this paper examines how
sustainable sourcing, production, distribution, and end-of-life management strategies
implemented by these brands contribute to environmental responsibility. Additionally, the paper
investigates collaborative efforts within the supply chain, such as reverse logistics and shared
transportation, to optimize resource utilization and minimize environmental impact. Findings
suggest that proactive adoption of sustainable practices not only mitigates environmental harm
but also enhances brand reputation and fosters consumer trust. Insights from this study provide
valuable guidance for fashion industry stakeholders seeking to align profitability with
environmental stewardship in a rapidly evolving market landscape.
Acknowledgement
We extend our heartfelt thanks to Professor Devindra Nagar for his invaluable guidance and
mentorship throughout this process. His unwavering support and encouragement pushed us to
step outside our comfort zones, transforming our classroom learning into a rich and practical
experience. We are truly grateful for his dedication.
Furthermore, we would like to express our appreciation to the National Institute of Fashion
Technology, Delhi. The resources and facilities provided by the institute have been instrumental
in the successful completion of this project, fostering our growth and development through its
innovative teaching methods.
Introduction
The global fashion industry is a titan of economic activity, but its impact on the environment is
both severe and unsustainable. From resource extraction and production processes to garment
disposal, the industry contributes significantly to pollution, deforestation, and greenhouse gas
emissions. Addressing this crisis requires a comprehensive understanding of the major causes
and a shift towards sustainable supply chain practices and circular business models.
Problem Statement
The fashion industry is one of the biggest global sectors as it provides significant contributions to
the economy. However, it is also one of the major industries contributing to environmental
degradation. The sector, from raw material extraction to a garment’s disposal, is associated with
various environmental challenges such as water pollution, deforestation, and greenhouse gas
emissions. The current study intends to explore how the fashion industry plays a role in the
environmental crisis to recognize prominent issues and potential measures. The findings of this
research could provide valuable insights for incorporating sustainable practices in the fashion
sector.
Research Objectives
1. Assess the fashion industry's environmental impact, focusing on water pollution, deforestation,
and greenhouse gas emissions throughout its supply chain.
2. Investigate the influence of brands that they have created and to study the reverse logistics of
the brand.
3. Identify key environmental and supply chain challenges within the fashion sector and
prioritize them based on severity and urgency for intervention.
4. Understand brands sustainable strategies and interventions for fashion brands and stakeholders
to adopt, targeting material sourcing, production processes, distribution, and garment disposal,
with the aim of mitigating environmental impact.
Research Questions
R1:What sustainable supply chain practices can address environmental issues within the fashion
industry?
R2:How does the fashion industry incorporate reverse logistics and a circular supply chain?
Literature Review
The fashion industry, one of the world's most significant sectors, not only drives a substantial
portion of the global economy but also holds a prominent position in global value creation.
McKinsey's State of Fashion 2017 report highlighted its economic importance, suggesting that if
ranked alongside individual countries' GDP, the global fashion industry would represent the
seventh-largest economy worldwide.
According to McKinsey, the global fashion industry produces more than 100 to 150 billion items
of clothing annually, indicating its immense scale and influence on consumption patterns and
environmental sustainability.
The fashion industry, with its rapid production cycles, extensive global supply chains, and
consumer-driven trends, has attracted increasing attention due to its significant environmental
impact. Textile production, in particular, is resource-intensive, requiring substantial amounts of
water and energy. Moreover, it is heavily polluting and contributes significantly to waste
accumulation in landfills. Fast fashion practices exacerbate these issues, leading to
overproduction, waste, and environmental degradation ([Allwood et al., 2006; Lee, 2007;
Hethorn & Ulasewicz, 2008]).
Despite its contribution to global economic growth and cultural expression, the fashion and
textile industry paradoxically ranks as the second-largest polluter worldwide, trailing only the oil
industry (Sustain Your Style, 2017). The proliferation of fast fashion has led to mass production
of garments, resulting in environmental harm through overproduction, waste generation, and
pollution. From discarding unsold inventory to releasing untreated wastewater containing
harmful chemicals, fast fashion brands perpetuate pollution and contribute significantly to
climate change (Onono, 2018).
These statistics underscore the urgent need for sustainable practices and environmental
stewardship within the fashion industry to mitigate its adverse effects on the planet.
The fashion industry faces growing scrutiny for its significant environmental footprint,
prompting the need for sustainable practices throughout the supply chain. Supply Chain
Management (SCM) practices play a critical role in reversing the negative environmental impact
of the fashion industry. By adopting best practices, companies can mitigate environmental impact
and promote a more sustainable fashion ecosystem.
Research Paper 1: Analyzing Sustainable Practices in Fashion Supply Chain (Soni &
Baldawa, 2023)
The research paper titled “Analyzing Sustainable Practices in Fashion Supply Chain '' (Soni &
Baldawa, 2023) highlights the environmental challenges posed by the fast fashion industry,
characterized by high production volumes and short product lifespans. The research explores the
growing emphasis on sustainability within the fashion industry. Consumers are demanding more
environmentally friendly practices, prompting brands to adopt SSCM strategies (Bocken et al.,
2014).
The paper compares the sustainability efforts of Reformation and Patagonia, two leading fashion
brands known for their commitment to ethical and environmentally conscious practices. The
analysis examines their approaches to supplier management, energy efficiency, and circularity
within their supply chains.
The research identifies several prominent best practices for SCM in fashion:
Key Concepts
● Life Cycle Thinking: The authors emphasize the importance of considering the entire
product lifecycle when assessing sustainability practices (Lockamy & McCormack,
2004). This holistic approach helps identify areas for improvement throughout the supply
chain.
● Strategic Sustainability Approaches: Three distinct approaches are identified:
● Reactive: Companies prioritize compliance with basic environmental regulations
(limited internal and external sustainability practices).
● Proactive: Companies go beyond compliance and leverage sustainability for brand
awareness, but implementation is still limited (focus on specific collections, not
entire supply chain).
● Value-Seeker: Companies view sustainability as a competitive advantage, driving
extensive implementation of practices throughout the entire supply chain for
maximum environmental and social benefit.
Proposition Summary
The paper proposes several key findings related to strategic approaches and their impact:
This paper offers valuable insights into the motivations and challenges behind implementing best
practices for environmental impact reduction in fashion supply chains.
The fashion industry's significant environmental impact necessitates a shift towards sustainable
practices throughout the supply chain. Fung, Choi, & Liu (2020) delve into this issue, proposing
a Sustainable Planning Strategy Framework (SPSF) designed to help fashion companies address
this challenge. Their study builds on several key concepts underpinning best practices for
environmental impact reduction within supply chains:
Key Concepts
Circular supply chain practices aim to minimize waste and maximize the lifespan of products
through strategies like recycling, refurbishing, and remanufacturing. Studies highlight the
following approaches:
Reverse logistics involves the management of product returns, recycling, and disposal. In the
fashion industry, effective reverse logistics practices can significantly reduce environmental
impact by extending the lifespan of products and minimizing waste. Key findings include:
Supply chain practices in the fashion industry play a critical role in reducing
environmental impact, with circular supply chains and reverse logistics emerging as key
strategies. Research indicates several key practices:
Low cost-There are no standard tools or processes for conducting exploratory research, which
makes it one of the lower cost approaches to research.
Insightful- Exploratory research helps lay the foundation of investigation, which can lead to
further research.
Understand the different challenges- A thorough research can be carried out to understand the
challenges faced by the brand.
Learning from Success Stories: Case studies of successful sustainable brands practicing reverse
logistics serve as inspiring success stories for other businesses seeking to improve their
environmental impact. These case studies can motivate and guide organizations in adopting
similar practices.
Case study methodology is a research approach that delves deeply into a particular case or cases
within a specific context to gain a comprehensive understanding of complex phenomena. This
methodology emphasizes detailed exploration and analysis of real-life situations, aiming to
uncover insights, patterns, and underlying mechanisms. Researchers using case study
methodology typically gather data through multiple sources, such as interviews, observations,
documents, and artifacts, allowing for a rich and nuanced understanding of the case under
investigation. Case studies are often used in fields such as psychology, sociology, education, and
business to examine individual experiences, organizational dynamics, historical events, or unique
phenomena. By providing detailed descriptions and interpretations, case studies contribute
valuable insights to theory-building, practical applications, and policy development.
1) Nudie jeans
2) No nasties
As addressed above, fashion brands are playing a key role when it comes to tackling this societal
consumption problem and educating consumers. To gain knowledge about the performance of
sustainable communication in this scenario, the example of Nudie Jeans is used.
Nudie Jeans is a Swedish fashion brand that was founded in Gothenburg in 2001 and since then
has been recognized for its social and environmental sustainability work. Since 2012 their denim
is made from only organic cotton. Nudie Jeans was chosen for this research because they use
production methods that do not harm the Earth or the workers involved, they address social and
environmental impacts of the fashion industry in their communication and educate customers
about what it means to use fashion in a slow and circular way (Velasquez, 2019).
The illustration shows the Nudie Jeans Value Chain and the circular processes for the materials
and products. With this illustration, they want to show how their business connects to the
lifecycle of their product and the complexity of a fully circular production process, from raw
materials through production, the user phase and finally to a new recycled raw material and
product.
It also shows that circularity is not about one circular stream, but many parallel processes.
2. Communication
The following will give a brief overview of what factors determine that Nudie Jeans’
communication strategy can be classified as sustainable communication. The awareness that
material about Nudie Jeans’ communication partly stems from the brand’s website needs to be
highlighted. This material is used for marketing purposes and to indicate corporate social
responsibility actions and therefore can be viewed as biased. However, for the extent of this
study, the information is fruitful to identify Nudie Jeans’ communication about sustainability.
The brand’s website is divided into Shop, Sustainability and This is Nudie Jeans. The
sustainability section gives information about Materials, Production, Products, and Report &
Policies.
The website’s written content provides information about sustainability and shows how thorough
Nudie Jeans’ communication about sustainability is. Two factors that show how Nudie Jeans is
paying attention to sustainability are:
1. The information about material use and production practices, with the focus on social and
environmental conditions of both. Alongside, they are explaining what is done well in that
regard, but also mention factors that need improvement.
2. The education of their customers about the importance of caring, repairing and reusing. Nudie
Jeans is offering free repairs in their shops and have assigned repair partners. They also send out
free repair kits. In their shops, they collect worn jeans to either resell as se- cond-hand or recycle
the material. They intend to sell jeans that last a long time, repair the ones that have ripped and
take care of the ones that became unusable. Consequently, customers do not have to purchase a
new product soon, thus the resource use and the impact on the environment remains low.
Although organic cotton is the main material they work with, Nudie Jeans also use other
sustainable materials for non-denim products. In 2018, they created the Nudie Jeans Material
Tool with the aim of guiding their designers and product developers to achieve Nudie Jeans' goal
to work with 100% sustainable materials. The tool is a living document and in 2022 it was
updated to clarify that they accept the EUROPEAN FLAX® standard as a sustainability standard
for linen and hemp, as well as added recycled elastane to the list of recycled fibers that they
define as sustainable.
The Nudie Jeans Material Tool is based on Made-By's Environmental Benchmark for Fibers and
the Higg Materials Sustainability Index (MSI). Other benchmarks, such as Textile Exchange's
Preferred Material Benchmark, offer a comparable benchmark of volumes and fiber-type usage
from a brand perspective. The Preferred Material Benchmark, therefore, provides valuable
insight into industry material use, rather than serving as a fiber classification tool.
The Nudie Jeans Material Tool has three categories of sustainable fibers, all of which are defined
as sustainable by Nudie Jeans. By sorting them, Nudie Jeans highlights the most sustainable and
circular fibers, with the aim of pushing their development further and challenging the industry to
scrutinize the definition and use of sustainable fibers. In addition to the Sustainable categories,
there is a Non-sustainable category for fibers that may be used for Nudie Jeans products that are
not defined as sustainable, as well as a Do Not Use category for fibers that should not be used in
Nudie Jeans products at all.
4. Initiatives
● Repair Shops
At present, Nudie Jeans are sold in more than 50 different countries and Nudie Jeans Repair
Shops that both sell new and reused jeans, while offering free repairs (with the condition of the
jeans being Nudie Jeans), can be found in cities all over the world. The first Nudie Jeans Repair
Shop was officially launched in 2013 and the first reused jeans were sold in stores beginning
from 2012.
They offer free repairs on their jeans for any rips, tears, or other damage. This encourages people
to hold onto their jeans for longer instead of throwing them away when they get a small tear. All
Nudie stores have built-in repair stations where skilled staff can fix your jeans. They believe in
giving their jeans a "second life" through these repairs. Nudie Jeans doesn't have stores
everywhere, so they also partner with select retailers as "Repair Partners" to offer these free
repairs in more locations
● Eco Cycle
Furthermore, Nudie Jeans promote and implement what they call the eco cycle which involves
the steps: break-in, repair, reuse and recycle.
The break-in step of the eco cycle focuses on the use phase of a pair of jeans, where Nudie Jeans
recommends the customers to air dry the jeans instead of washing them too often, which will
save both water and energy.
The repair step is implemented by offering free repairs of Nudie Jeans in all of their Repair
Shops. The reuse step involves reusing either the jeans fabric or the actual jeans. The fabric from
worn out Nudie jeans is mainly used as patches in the repair service but also to produce new
products such as caps and backpacks. The jeans which are to be reused are collected from
customers at the Repair Shops where they are resold after being repaired and cleaned. The
collected jeans that are not resold at the Repair Shops are sent to Nudie Jeans’ stock Korallen in
Borås, Sweden.
The recycling step of the eco cycle is mainly implemented through the use of recycled fabrics in
some of Nudie’s jeans. Previously, this recycled fabric did not originate from Nudie jeans.
However, Nudie Jeans have recently looked into the opportunity to recycle the fabric from the
collected worn out jeans. The plan is to produce a new jeans model containing 20 % recycled
Nudie Jeans fabric to be put on the market.
5. Production
As with most other clothing brands, Nudie Jeans does not own the factories where their products
are made. They are however, together with their garment suppliers, responsible for providing a
safe and ethical working environment, as well as providing support towards mitigating negative
environmental impacts caused by the production.
In 2022, a Responsible Business Conduct (RBC) Policy was established. The policy describes
Nudie Jeans’ commitment to reducing negative environmental and social impacts as much as
technically, economically, and practically possible within the scope of their business. The policy
aims to reaffirm their commitment to conscientious and responsible business conduct in full
respect of the key principles introduced in their full policy portfolio.
Nudie Jeans’ responsibilities include selecting suppliers and sub suppliers that share Nudie Jeans
ambitions and values regarding human rights, labor practices, the environment and ethics. Nudie
Jeans strive for long-term relationships and their intentional supplier choices are outlined in their
Sourcing Strategy.
They continuously work with risk assessments to map and evaluate human rights violations as
well as environmental risks connected to their operations. The risk assessments are conducted at
various levels, such as sector-, country-, sourcing model-, process-, material-, and product level.
The impact of Nudie Jeans' sustainable initiatives can be seen on two main fronts: environmental
impact reduction and influence within the fashion industry.
1. Environmental Impact
By using organic cotton and recycled materials, Nudie Jeans lowers the demand for conventional
cotton, which requires a significant amount of water and pesticides to grow. They're also finding
ways to utilize waste materials like second-quality jeans. Mapping their supply chain's CO2
emissions allows them to identify areas for improvement and their carbon offsetting mitigates
their overall impact. Their free repair program extends the lifespan of their clothing, keeping
garments out of landfills and reducing the need to produce new ones. Their Eco-Cycle program
explores ways to reuse and recycle denim even further.
Nudie Jeans is a leading example of a sustainable denim brand. Their success shows other
companies that sustainable practices can be commercially viable. Their annual sustainability
reports set a transparency standard for the industry, encouraging others to be more open about
their environmental impact. By focusing on repair and responsible consumption, Nudie Jeans
educates consumers about the environmental costs of clothing and encourages them to make
more sustainable choices. It's important to note that sustainability is a journey, not a destination.
Nudie Jeans' initiatives are ongoing, and they are constantly looking for ways to improve.
However, their efforts have a demonstrably positive impact and inspire a more sustainable future
for the fashion industry.
No Nasties is a sustainable clothing brand based in India that focuses on creating high-quality,
100% organic cotton clothing for both women and men. The brand was founded with the mission
of providing ethically-produced, environmentally-friendly fashion options to conscious
consumers. It isn't just another clothing brand; it's a movement for a more sustainable and ethical
fashion industry. Here's a detailed breakdown of what makes them unique: -
No Nasties caters to individuals who believe in looking good and feeling good about the impact
their clothing choices have. They are for the environmentally conscious consumer who
prioritizes sustainable practices and ethical production. They are for those who want to express
their style with a conscience, knowing that their wardrobe choices are making a positive
difference in the world.
No Nasties isn't satisfied with simply offering eco-friendly clothing and ethical production. They
understand that true sustainability requires a holistic approach, extending the life cycle of their
garments and minimizing waste. Here's an in-depth exploration of their innovative reverse
logistics and circularity programs that orchestrate a symphony of sustainability:
3. Repair Kits & Resources - No Nasties believes that customer participation is essential
for a successful circularity symphony. They go beyond just take-back programs and offer
resources that empower individuals to become active stewards of their clothing:-
● Tailored Repair Kits: Customers can purchase repair kits specifically designed for their
No Nasties garments. These kits come equipped with needles, thread, and patches that
perfectly match the colors and textures of the clothing, making minor repairs a breeze.
● Educational Resources: No Nasties understands that not everyone is a sewing expert.
Their website is a treasure trove of online tutorials and resources that provide
step-by-step guides on basic garment care and repair techniques. This knowledge
empowers customers to extend the lifespan of their clothes, reducing the need for
frequent replacements.
No Nasties' reverse logistics and circularity programs create a harmonious balance between style
and sustainability. Here are the key benefits of this innovative approach:
No Nasties, the sustainable clothing brand based in India, has demonstrated a strong commitment
to environmental sustainability, ethical labor practices, and circularity. The brand's initiatives
have resulted in measurable positive impacts, which are detailed below:-
Environmental Impact:-
Social Impact:-
● Fair Trade - No Nasties ensures fair wages and safe working conditions for garment
workers by partnering with Fairtrade-certified factories. This empowers workers,
promotes ethical labor practices within the fashion industry, and ensures a living wage for
those who bring their designs to life.
● Supporting Organic Farmers - Their use of 100% organic cotton directly supports
small-scale organic farmers in India. This not only promotes sustainable farming
practices that nurture the land but also contributes to the economic well-being of these
communities, fostering a positive cycle of environmental and social responsibility.
● Reduced Use of Harmful Chemicals - Organic cotton eliminates the use of toxic
pesticides and fertilizers, leading to a healthier environment for farmers and consumers
alike. This translates to a reduced risk of health problems for those involved in the cotton
production process and for those wearing the finished garments.
Impact on the Fashion Industry:-
Market Impact:-
Overall, the positive impacts of No Nasties' initiatives span environmental, ethical, and
market-related domains, solidifying the brand's position as a leader in the sustainable fashion
industry in India.
Discussions
The case studies of Nudie Jeans and No Nasties demonstrate the potential of circular economic
principles within the fashion industry. Nudie Jeans' "Eco-Cycle," focused on repair, reuse, and
recycling, highlights how extending product lifespans can reduce the industry's reliance on virgin
resources and waste generation. No Nasties' multi-tiered take-back system and upcycling
initiatives further illustrate the viability of circular models and their power to engage consumers
in the process. These successes point towards a shift from the traditional linear
'take-make-dispose' model to closed-loop systems for greater resource efficiency.
Both brands prioritize customer involvement in their sustainability initiatives. Nudie Jeans' free
repairs encourage customers to retain garments longer, aligning with the growing demand for
longevity in fashion and promoting brand loyalty. No Nasties' garment take-back program
transforms consumers into active participants in responsible disposal and circularity. This
highlights the need for brands to cultivate a sense of ownership and shared responsibility among
consumers, empowering them to contribute to sustainability solutions. Further research on
aligning consumer behavior with circularity and repair initiatives is crucial.
While demonstrating potential for scaling up, the case studies also reveal the complexities
involved in implementing sustainable practices on a wider scale. Consumer sensitivity to price
premiums, logistical challenges in establishing efficient reverse logistics networks, and
technological limitations in areas like textile recycling remain barriers. However, opportunities
for the industry lie in collaborative solutions. Strategic partnerships for resource sharing,
investment in textile recycling innovation, and the creation of industry-wide sustainability
standards can address these challenges and accelerate progress.
Technology is poised to play a vital enabling role in the move towards sustainable fashion supply
chains. Blockchain solutions can enhance transparency, allowing consumers to trace a product's
environmental impact and ethical journey. Innovations in material recycling and digital platforms
for garment repair, rental options, and peer-to-peer resale could further optimize resource use,
enhance traceability, and foster consumer participation in circular models.
The case studies suggest that integrating sustainability initiatives into a brand's core identity can
be a competitive advantage. Nudie Jeans' emphasis on its Eco-Cycle aligns with increasing
consumer demand for ethical fashion and fosters loyalty among environmentally conscious
shoppers. This suggests other brands can benefit from similarly integrating sustainable practices
as core values, moving beyond token gestures to create long-term, impactful sustainability
journeys.
This research analysis demonstrates the viability of sustainable practices within the fashion
industry. However, a multi-faceted approach with circular business models, robust reverse
logistics, technological innovation, consumer education, and supportive policy frameworks will
be essential for the sector's transformation into a truly sustainable and ethical ecosystem.
Future Directions
● Scaling Effective Practices: While successful, the initiatives of Nudie Jeans and No
Nasties face limitations due to their scale. Future research should investigate models for
scaling sustainable practices across larger brands and the feasibility of industry-wide
adoption. Examining how government policies or financial incentives could create a level
playing field is essential.
● Partnerships for Impact: Collaboration will be crucial for widespread change. Research
into collaborative models for reverse logistics, shared repair networks, and joint R&D
initiatives between brands could unveil avenues for greater impact. The creation of
industry-wide sustainability standards will also be necessary.
Conclusion
This research underscores the critical need for the fashion industry to confront its environmental
challenges and embrace sustainable practices. The case studies of Nudie Jeans and No Nasties
showcase viable pathways toward a more circular, responsible, and ethical fashion system. By
prioritizing repair, reuse, consumer engagement, and technological innovation, these brands offer
a blueprint for the industry's transformation. Their efforts, while successful, highlight the
complexities, remaining challenges, and opportunities in scaling up sustainability initiatives on a
wider level.
The findings of this research point to several key takeaways. First, a shift towards circular
business models holds the potential to minimize waste and reliance on virgin materials. Second,
consumer behavior change is essential, and brands must actively engage and educate consumers
to become conscious stakeholders. Third, the fashion industry must overcome challenges through
collaborative efforts, technological innovation, and supportive policy frameworks. Finally,
embedding sustainability deeply within a brand's ethos can foster brand loyalty and resonate with
a growing consumer base seeking products aligned with their values.
This research underscores that addressing the environmental and ethical crisis in fashion requires
a multi-pronged approach. It is a collective responsibility shared by industry stakeholders,
policymakers, technology providers, and ultimately, consumers. While the path towards a truly
sustainable fashion future demands continued effort, the transformative potential for businesses,
individuals, and the planet is clear.
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