Sustainability is on the high priority of the textile and fashion industry, and sustainable sourcing is a vital part of it.
Why is Green procurement required?
The fashion industry is growing at an impressive clip. By 2030, the sector is expected to be worth $3.3 trillion and will manufacture 102 million tons of clothes and shoes. This industry has also arguably grown into one of the world’s most needlessly polluting, wasteful, energy-intensive and inefficient industries. Its supply chains are so fragmented, vast and distant that many retailers are unaware of how their fabrics are made, and who runs the factories that supply them. This dislocation was all the more concerning since the life cycle of a garment is known to be far more environmentally damaging than previously assumed.
Brands have made progress in addressing these issues – Reformation, Everlane, Athleta, H&M’s Conscious clothing line and more have created lines that limit negative impact , but there’s still room to grow.
Today’s consumers want to both look good and feel good about what they’re buying, which means delivering products and services to markets that aren’t just fashionable but are also created responsibly and ethically. Sustainability should not have to be sacrificed in the pursuit of style and the key to delivering on both promises lies in sustainable procurement practices.
Every Trend Starts Somewhere
The “fast fashion” model of producing clothing as quickly as possible and at the lowest cost perpetuated sustainability issues already present in a complex and global apparel supply chain. A general lack of visibility and transparency lead to problems with forced labor, corruption, environmental issues and more for any company, but the models deployed by fashion brands to keep up with new styles quickly has made it even harder on supply chain and sustainability teams to address these risks.
The supply chain accounts for more than 80% of global greenhouse-gas emissions and 90% of impacts on resources like air, land, water, biodiversity and more. Often CSR issues lie deep in supply chains, making it hard to address with traditional procurement programs.
In fact, according to the Sustainable Procurement Barometer study, only 15% of organizations said they have complete supply chain visibility into the CSR and sustainability performance of both tier one and two suppliers, and only 6% reported full visibility into tier three suppliers and beyond.
The Green Alternative
Sustainable sourcing is an integration of environmental, ethical and social factors through the entire sourcing process. Also, it includes buying sustainable products and services. Sustainable sourcing is a streamlined and simplified supply chain operation providing an economic benefit for customers and suppliers alike through lowerpricesand improved service levels.
Mission sustainability can take apparel brands in various directions. The top performers always recognize the integral connection between sustainability and the supply chain. And trust me, there’s no better supply chain landscape than the application of sustainable sourcing and procurement.
Major textile trading countries are including sustainable sourcing in their strategies to control cost and boost production capacity.
Sustainability in the supply chain also help these countries to attain the following goals:
Social: Diversity, local communities, and a good working atmosphere.
Economic: Financial stability, energy demands, and reduction.
Environmental: Biological perseverance, pollution regulations, energy conservation, carbon/water footprint reduction, and global warming.
The real POWER of sustainable sourcing
Textile and apparel businesses are being competitive when it comes to sustainable sourcing and procurement. The superpowers of sustainable sourcing are – Social (People), Economic (Profit) and Environment (Planet). With the growing number of suppliers, the sustainable sourcing landscape is becoming more competitive. Suppliers are chasing the green alternative i.e a low-cost alternative with impressive marketing strategies. Positive economics around sustainability has taken hold of the textile and apparel industry. Many successful brands have formal sustainability efforts, and sourcing and supply management and they call it their success secret.
Overcoming barriers of sustainable sourcing
In the textile world, sustainability is the biggest yet-to-fix issue with various stumbling blocks like price, awareness, resources, traceability, values, risk management, profitability, and sourcing. With the growing demand for ethical sourced, sustainable products, businesses need a unique point of difference to boost their sales. Brands are conquering these challenges globally to achieve the best of sustainable sourcing. Businesses are getting more conscious to ensure that their supply chains are sustainable.
The Green alternative is truly cost-effective
Textile marketing strategies and pricing are evolving with increasing numbers of sustainable suppliers. The green alternative is the low-cost initiatives apparel brands are chasing. Green sustainability is making buyers replace their non-sustainable product majorly because of its cost-effectiveness, and social responsibility is another big reason. According to HSBC, 84% of global businesses are making eco-friendly changes to their supply chain to enable cost efficiency. This report also shows that Sustainability is fast becoming a key conversation
starter in unlocking greater efficiency and cost-saving in the supply chain. Brands are considering sustainable sourcing to improve their revenue and financial importance.
Key to Sustainable Sourcing
Apparel brands are adding more power to their business with sustainable sourcing. Green sustainability has taken a good hold on the textile and apparel market and the supply chain for the betterment of Society, Environment and Economy.
If a business hasn’t started sustainable sourcing yet, follow the below steps to take a step towards green sourcing.
- Identify the company’s green specifications and sustainability needs.
- Develop a whole new strategy including green sourcing.
- Introduce new sustainability policies and processes to sourcing units.
- Analyze the process thoroughly.
- Compare the prices of sustainable and non-sustainable products and services.
- Influence the market intelligence team to find sustainable and green alternatives.
- Keep monitoring and evolving the sourcing strategy depending on business needs and demands.
These keys will surely help create a strategic sourcing model that includes social responsibility as a leading part of it.
Doubtlessly, sourcing strategy is best for brands and retailers to align it throughout their supply chain. Individual consumers can also add more power to their choice by picking sustainable products and services.
We can unquestionably say “Sustainable sourcing is the future of textile sourcing”.
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