Apparel Supply Chain Challenges

However, when considering the sustainabUity of apparel retail, the most important aspect of the business model to consider is associated with how the retailer sources products. This activity has the most direct impact on the ability of the retailer to be sustainable. The retailer s products and supply chain are the most significant source of the environmental and social impacts. Up to two-thirds of a retailer s carbon footprint and up to 90% of its water footprint is created by its products and supply chain (WRAP, 2011). And as a retailer s supply chain may have more than 20 times more workers in it than in its retail operation, and often in countries where social issues may be significant, the supply chain is a major source of social and ethical challenges for the retailer. Therefore, the sourcing model for products and suppliers is a critical consideration in the development of a sustainability strategy. 

Modelling of uncertainties in supply chains has become important with the proliferation of product varieties and the increased volatility of the global market places of the contemporary business environment. For instance, product range and product style in a fashion industry are renewed constandy while in the basic apparel industry, long production and distribution lead times still prevail. Managing business environment dynamics in an uncertain and competitive market is a challenging task and forced many organizations to reform their operational processes. 

One manufacturer has found a way to overcome the lead-time problems so as to be able to quickly respond to fashion. Benetton, an Italian apparel manufacturer makes sweaters in bulk, but delays the dyeing process until after initial sales figures are received from the retailers. In other words, colour choices are made after the manufacture. This approach has increased the cost of production by 10 per cent but has resulted in improved forecasts, less surplus stock and due to quick response to customer demand higher sales which has more than compensated for the inCTease in production cost. Major retailers are responding to challenges of lean and agile supply chain (see Chapter 13) as the following case example of Tesco illustrates. 

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