What sustainability looks like for your supply chain
If your aim for 2021 is to make your overall supply chain more sustainable, there’s lots to think about - from the farms that create the materials or ingredients, to the factories that put each product together, and the packaging that delivers each order to the customer’s front door.
So where should you start and how can you become part of a much bigger change? Here we share three ideas to get you working towards a more sustainable future.
BlockChain Technology
Most fashion and beauty supply chains are pretty complex and you’d be forgiven for not knowing the detail of every aspect of yours. But if you really want to show your customers true transparency, it’s important that you do.
So where can you start? Block chain technology is one way that a growing number of fashion companies are becoming more accountable and collaborating better with their complete supply chain – not just tier-one suppliers. In fact, Vogue Business reported in May 2019 that investment in blockchain start-ups had increased at a compound annual growth rate of 90 per cent over the past five years.
According to Fashionista.com, block chains log transactions like the transfer of money, goods or services. Records of each blockchain transaction are then then stored in over 200,000 computers around the world that make up the blockchain network. This central network of information works in a similar way to a Google doc, but in this case, there isn’t one central owner which makes the blockchain log completely tamper-proof.
Fashionista.com goes on to describe blockchain companies such as Provenance as allowing everyone from the farmer, to the textile mill, to the cut-and-sew factory to communicate directly with the brand that buys from them. This will help to ensure that fashion and beauty products have traceable, transparent origins of which auditors can use to verify certifications and confirm working conditions in the future.
Cradle to Cradle Certification
Another way many fashion companies are trying to make their supply chains more sustainable and traceable is with the Cradle to Cradle business model. A global recognised level of safety, retailers can put a product or material up for assessment if they believe it: meets the eligibility requirements of the Cradle to Cradle Certified® Product Standard; complies with its banned chemical lists; and is part of a wider commitment to continuous product improvement.
The Cradle to Cradle website explains that to receive certification, products are assessed for environmental and social performance across five critical sustainability categories: material health, material reuse, renewable energy and carbon management, water stewardship, and social fairness. If certified, a product is then awarded an achievement level (Basic, Bronze, Silver, Gold, Platinum) for each category.
The certification is now used as a preferred product standard all over the world allowing product designers, manufacturers and brands to make products that are kinder to the planet while helping consumers make responsible purchasing decisions.
G-Star is a great example of a fashion brand with Cradle to Cradle certification. Available on Clearpay retailer ASOS, G-Star RAW Denim Product represents a range of denim styles designed and manufactured according to Cradle to Cradle® design principles at the Gold level. All styles have been produced at Saitex in Vietnam. For a wider list of certified brands, materials and processes, visit the Cradle to Cradle Certified Products Registry.
Build Reverse Supply Chains
The retail industry creates vast amounts of waste so upcycling is a really important way you can try to improve the sustainability of your own supply chain. Many fashion brands such as Rixo are doing this with sustainable collections. Its coveted Ariel dress, for example, is made in a female-owned factory in India and created with recyclable materials and off cuts of fabric that would have otherwise been wasted.
Luxury e-commerce retailer Farfetch is also promoting a reverse supply chain in a number of innovative ways that promote circular fashion. The first is its Choose Positively line which includes a collection of sustainable and pre-owned pieces, alongside FARFETCH Second Life which allows customers to earn store credit by selling their pre-loved designer bags and second-hand clothes.
But while these efforts are to be applauded, it’s also important to look further back in your supply chain to see how wastage is being created in each step of the manufacturing process including fibres, weaving, dying and garment processing.
Another way merchants can aim to cut back on waste is by gathering important sales data and sharing it along the supply chain in real time to cut back on both over and under-production. Just-Style explains that when buying and planning signals are delayed along the supply chain, it can cause big swing in inventory as retailers try to keep up with customer demands. The closer the retailer is connected to their supply chain, the less waste there will be.
Making small steps to become more sustainable and closely aligned with your supply chain can help you provide more transparent information to your customers, gaining deeper trust and loyalty and long-term success. How will you start today?
CTA: Learn more about how Clearpay can help your business by booking a meeting with one of our Retailer Team Members today at [email protected]
