Abstract
Textile and apparel supply chains have emerged as environmentally unsustainable and pollution-causing, responsible for the depletion of resources and the fourth-largest cause of greenhouse gas emissions in the environment. With the hub of textile and apparel production centralized around developing economies, the supply chain faces several challenges, with organizations focusing on triple-bottom-line performance considering the social and environmental impact of the supply chains over and above their financial viability. Thus, seven critical requirements for an effective supply chain model to meet the triple bottom line are reduction in textile waste and emissions, reduction in energy intensity, maximum usage of renewable and sustainable energy resources, reuse and recycling of materials, measurement, and assessment of the impact of the supply chain on the ecosystem, standard measuring procedures evaluating the sustainability performance of an organization and environmental consciousness permeating the organizational culture.
TopIntroduction
In recent years, there has been increasing pressure on organizations by customers, stakeholders, government, and investors to demonstrate greater environmental stewardship and social responsibility. Therefore, supply chain sustainability has emerged as a significant corporate goal for many organizations, especially when it accounts for enormous resources, which are frequently a cause of considerable wastage for both the environment and society (Fields & Atiku. 2017). The textile and apparel industry is one of the world's most environmentally unsustainable and pollution-causing industries (Boström & Micheletti, 2016), with the most significant areas emerging as disposable fashion, fast fashion, slow fashion, green branding, and eco-labeling. The frantic pace of the fashion sector is the fourth largest contributor to greenhouse gas emissions, trailing only housing, transport, and food, and will emit 2.7 billion tons of carbon dioxide equivalent (CO2e) in 2030 (Dominick, 2023). Supply chains for apparel and textiles with production sites in emerging economies face challenges with all three dimensions of supply chain. Textile and apparel account for 9% of the world's workforce, 2% of the global GDP, and 4% of worldwide exports in emerging economies with large workforce in East Asian countries.(Fletcher Kate, 2012; L. Nayak & Mishra, 2016). Brand import regulations insisting on sustainability through regulating hazardous raw materials, dyes, effluents, etc., pose mini risks to brands.
In contrast, regulations in the process, such as preventing child labor, can lead to financial consequences. Effective models determining material supplier selection can increase the effectiveness of the textile and apparel supply chain (Guo et al., 2017; Milewska, 2018). With the current competitive textile/apparel market, companies are adjusting their business strategies by identifying cost-effective sourcing supply chains and cutting down manufacturing costs of products. This trend began with the creation of NAFTA, enabling companies to find cheaper tax-saving manufacturing options in Mexico and Central America (Gary Teng & Jaramillo, 2005)
Key Terms in this Chapter
North American Free Trade Agreement: ( NAFTA ): An agreement implemented in 1994 to encourage trade between US, Canada and Mexico, by eliminating tariffs between participating countries and creating a trade free zone.
Polypropylene (PP): Polypropylene is a tough rigid and crystalline thermoplastic made from propene (propylene) monomer used in variety of applications.
SO2: Indicator of poisonous gaseous sulfur oxides released into environment due to fossil fuel combustion due to industrial activities.
Life Cycle Inventory: ( LCI ): This assesses the environmental load of the products made based on the goals and scope defined through ISO standards 14040.
Global Reporting Initiative (GRI): This provides for developing the most widely used sustainability reporting stands covering topics ranging from biodiversity, taxes, waste, emissions, health and safety.
Life Cycle Assessment (LCA): This measures the environmental impact of a product or service
Fuzzy Interface System (FIS): A system using fuzzy set theory to map inputs to outputs. Based on this mapping the system takes decisions and distinguishes patterns.
Microbial Fuel Cells: ( MFC ): Devices using bacterial metabolism to produce electrical energy from organic substances.
Augmented Reality: ( AR) : A digitally enhanced interactive experience using software’s, apps and hardware overlaying digital content onto real life objects.
Green House Gases (GHG): Gases in the earth's atmosphere, trapping heat and preventing temperatures from dropping to as low as -18 o C (-0.4 o F).However unsustainable practices are leading towards dramatic increase in greenhouse gas production resulting in global warming an climate change.
Fashion Supply Chain Management: ( FSCM ): Management of fashion supply chain right from Design, sourcing, dyeing, finishing, retail and consumption of goods and the Social, Environment and Financial impact of the same.
Energy Yield Ratio: ( EYR ): The ratio of gross energy yielded to society by the system to the energy required by society to build and maintain it.
Reverse Fashion Supply Chain (RFSC): Reverse fashion supply chain is opposite to the normal supply chain with fashion apparel/textiles moving back to the vendor/supplier or retailer, picked up through reverse logistics system and then cleaned, sorted, restored, repacked, and reused.
Finite State Machines (FSM’s): Also called a finite state automation, this is a computation model which can be implemented using software’s to simulate sequential logic of machines.
Virtual Reality (VR): Virtual reality uses computer modelling or simulation enabling interaction with an artificial three dimensional (3D) visual.
Sustainable Supply Chain Management (SSCM): Sustainable supply chain management incorporates sustainability in supply chain by incorporating sustainability in core functions of the supply chain starting from purchasing, manufacturing, distributing, storing, warehousing, usage, recycling and disposal.
Carbon Dioxide: ( CO 2 ) Emissions : Emissions arising out of energy combustion and industrial processes, releasing into the environment as poisonous gas.
European Union: ( EU) : A union of 27 member states of Europe. It's a political entity combining characteristics of both a confederation and a federation.
Environment Loading Ratio: ( ELR): The ratio of nonrenewable and imported energy use to renewable energy, indicating the pressure exerted by a process on an environment and considered an apt measure of ecosystem stress.
Energy Sustainability Indicator (ESI): An indicator obtained based on Energy Yield Ratio and Energy Loading Ratio and is a measurement of a resource’s contribution to the economy/unit of environment loading.
Mean Variance: ( MV) Model : Usually employed when retailers function under risk. This model optimizes problem considering both payoff and risk where payoff is captured by expected profit (mean) while risk is measured by profit variance.
Sustainable Development Goals (SDG): Sustainable development goals by United Nations are a blue print to create a sustainable future for all.
Multi Fiber Agreement: ( MFA ): A clothing and textile agreement established in 1974 establishing quotas on the quantum of clothing and textiles which can be exported from developing countries to developed countries.
Life Cycle Impact Assessment: ( LCIA ): This is an assessment of the environmental impact of the products that are being assessed and evaluated.
Environment MANAGEMENT systems: ( EMS ): A set of processes and practices enabling organizations to monitor their supply chain to reduce environmental impacts and increase operating efficiency.
Triple Bottom Line (3BL): Considering the Social and Environmental impact of a supply chain apart from the financial viability of it. Triple bottom line therefore incorporates the community, environment and corporate benefits in the supply chain.
Radio Frequency Identification (RFID): Radio frequency identification is a wireless system consisting of tags and readers .the device has one or more antennas emitting radio signals which are received from the Radio Tag.
(Nonrenewable Rate N1): Nonrenewable rate is a ratio of non-renewable energy to total energy resources
World Trade Organization (WTO): WTO is an organization that deals with global rules of trade amongst nation ensuring fair trade practices through their agreements, accepted and ratified by trading countries parliaments.
Sustainability Performance Index (SPI): Sustainability performance index is sustainability impact indicator use to calculate supplier sustainability levels of an organization based on sustainability parameters spanned across the triple bottom line social, environmental and economic aspects of a supply chain.
Mean –Downside –Risk Model: ( MDR ): This calculates deviation of profit from Mean which is generally asymmetrical in market conditions and a better parameter than judging variance as per the MV model since variance alone was found unsuitable and deviation of profit is a better judge as it is generally asymmetrical in market conditions.