Adopting Sustainable Practices in Fashion Retail and Supply Chain

500,000 tonnes of microplastics–approximately 50 million plastic bottles–enter the ocean each year. And one of the biggest, yet overlooked, culprits? The fashion industry.

According to the Geneva Environment Network, the fashion industry accounts for up to 2-8% of the total carbon emissions, more than international flights and the maritime industry combined. 

With such an environmental footprint, sustainability is no longer a trend–it’s a necessity.  

Why Sustainability Matters?

In addition to the unavoidable environmental impact, consumer behavior is changing rapidly. In an economy where fast fashion is thriving, there is parallelly a growing awareness among young consumers about the impacts of climate change. 

According to a PwC Survey, 43% of Indian consumers are ready to pay an average 9.7% premium price for sustainably produced goods. Shoppers are questioning their brands–What materials were used? Where did they come from? Where was this garment manufactured? Brands that do not address these concerns risk their image and customer trust. 

Additionally, governments across the globe are implementing ESG regulations, such as CSRD, EPR Policies, and so on, building pressure on fashion brands. The solution? Overhauling the entire fashion retail and supply chain processes.

Powering sustainable fashion: Optimize inventory, reduce waste, go green!

Key Strategies for a Sustainable Fashion Retail and Supply Chain

1. Sustainable Sourcing: Choosing the Right Materials  

The fashion supply chain starts with sourcing. Sustainability practices should start here–what kind of materials are used and how they are manufactured? Brands can use organic, recycled, and biodegradable materials that require less water and pesticide.

Some eco-friendly material choices include:

• Organic cotton and hemp – Uses less water for growth and is resilient to pests.
• Recycled fabrics – Reduces wastage and dependence on virgin materials.
• Tencel – Manufactured from wood pulp and requires less water and energy.
• Bamboo fabric – Requires less water and pesticides but grows faster.
• Banana fabric – Produced by recycling agricultural waste.

Additionally, instead of synthetic dyes, natural plant-based dyes can be used to reduce environmental impact. For example, 11.11/Eleven Eleven is a slow-fashion brand that uses organic textiles and Ayurvedic plant-based dyes like turmeric, neem, and pomegranate peel.

Brands should source their materials from ethical suppliers, who prioritize fair wages, safe working conditions, strict child labour policies, etc. Innovations like lab-grown fibres like BioFabricated silk, BioFibre, Regen Fibre, etc., should also be encouraged.

2. Ethical Manufacturing: Reducing Waste and Energy Use

Garment manufacturing contributes significantly to GHG emissions. Some practices to optimize resource utilization and wastage are:

Lean Manufacturing and Zero-Waste Designs
From material wastage and manufacturing time to overproduction and overprocessing, the Lean Manufacturing principle focuses on reducing wastage at every step of the production process. Technologies like pattern-making software and Zero-Waste Swatch Cutting can be used to optimize design with minimal scraps.  

Using Sustainable Energy Sources
Manufacturers can use sustainable energy sources to run their factories–solar, wind, and hydroelectric power–and reduce their carbon footprint.  

Waterless and Eco-Friendly Dyeing
The textile industry is the second largest consumer of water, next to agriculture. Of all the processes, dyeing is the most water-intensive, consuming 30 to 50 litres of water for one kilogram of cloth.

Alternative methods, like carbon dioxide dyeing, sublimation dyeing, foam dyeing, etc., can reduce water and energy usage. Nike, IKEA, Zara, and Wrangler have adopted these dyeing techniques.

3. Smart Inventory Management: Minimizing Overproduction

The fashion industry is characterized by micro seasons–short-lived trends and styles. Smart inventory management techniques will help brands optimize production, reduce textile wastage, and manufacture for actual demand.

AI for Demand Forecasting
Data such as customer preferences, sales patterns of similar items, economic trends, and seasonal patterns can be analyzed to make predictions about future demand. AI and ML algorithms analyse this vast data, helping brands manage inventory effectively.  

Made-to-Order (MTO) and Small-Batch Productions
Instead of bulk garment manufacturing, some brands produce after the customer places the order. Some designers manufacture only in small batches and are able to test the market for a new product. This offers more flexibility and faster response to changing trends, in addition to being sustainable.

Digital Twins and AI-Driven Inventory Analytics
What if you are able to create a virtual twin of your inventory system? You can test real-world scenarios like market changes or new product launches, and forecast demand, adjust production, improve logistics, and manage inventory.  

It collects data like inventory levels, production status, etc., from IoT sensors and RFID tags across factories, stores, and warehouses. AI-powered forecasting predicts how many products are needed, where and when, preventing overproduction.

4. Circular Fashion: Extending Product Life Cycles

Most fashion brands follow a linear production system (take-make-dispose), contributing to environmental degradation. These products are disposed of if they go out of trend or after minimal use ending up in landfills.

A sustainable alternative is circular fashion (closed-loop model). The apparel/accessory is designed keeping in mind the 4Rs–Reused, repaired, resold, or recycled. Some of the key principles of circular fashion are:

Producing High-Quality Goods
Design and manufacture high-quality products with longer life span. Instead of supporting short-lived trends, opt for timeless fashion.

Using Recyclable or Biodegradable Materials
Shift to organic or recyclable materials instead of synthetic fibres that release microplastics into the water bodies.  

Reuse and Repair
Encourage and facilitate customers to repair and reuse/resell their fashion products instead of discarding them. Customers can also rent (Rent the Runway, Flyrobe, etc.) or buy used products from thrift stores or online second-hand stores.

Recycling and Upcycling
Recycle used products using various chemical and mechanical methods to make new clothes. Similarly, fabric scraps can be upcycled into new clothes or accessories, reducing the use of virgin resources.

Take-Back Programs
Many companies encourage consumers to exchange their old clothing for a small discount on new purchases. For example, Levi’s and Adidas launched pre-owned sections to sell second-hand products.  

5. Green Logistics: Reducing Carbon Footprint in Fashion Supply Chain

Packaging, shipping, and transportation are other major areas which contribute to carbon footprint. Plastic bags, boxes, and other wrapping materials produce a lot of waste. Transportation also uses fossil fuels, which emit GHG, resulting in pollution.

Sustainable fashion brands should look for eco-friendly packaging and logistical solutions to reduce environmental impact. For example:

• Use eco-friendly packaging material.
• Pack with multi-use garment bags instead of one-use poly bags.
• Implement minimalistic packaging and avoid unnecessary wrappings.
• Use advanced analytical programs to optimize delivery routes.
• Expand your EV-based delivery fleets.
• Opt for localized manufacturing to avoid long transportation.
• Prefer slow, consolidated shipments.

6. Transparency and Traceability: Ensuring Accountability

Although consumers are ready to pay a premium for sustainable goods, there is a say-do gap. Out of the 80% of shoppers who want to make a sustainable purchase, only 7% actually do. One of the major reasons for this gap is that they don’t trust the brand’s sustainability claim.

With a huge number of suppliers, sub-suppliers, and intermediaries, fashion brands find it difficult to offer 100% supply chain visibility. They can use technologies like blockchain and RFID (Radio-Frequency Identification) tags to track every stage of the supply chain.

By doing so, brands can increase traceability of their products from raw-material procurement to inventory, giving consumers authentic sustainability information.

7. Driving Demand for Sustainable Fashion

Although a proportion of consumers make conscious eco-friendly decisions, there is still room for improvement. From unawareness about the impact to an indifferent attitude to social issues, fashion brands must educate consumers to remove barriers to sustainable shopping.

Transform fashion sustainability with Ginesys’ smart inventory & seamless supply chains!

3 Strategies to Drive Demand for Sustainable Goods

a. Provide Authentic Information and Improve Transparency

Brands can provide information about materials used, production processes, and supply-chain partners on product packages. For example, B-Label is a slow fashion brand that uses organic hemp for producing garments.  

B-Label partners with platforms like Flourish to provide detailed sustainability information to consumers. They also follow pricing transparency by providing insights into cost breakdowns, production methods, and the artisans who created each product.

b. Educate Consumers About Product Durability  

Producing durable and quality products is a way to increase longevity. Brands should engage, educate and appeal to value-seeking shoppers. This creates a win-win situation for the consumers–durability and sustainability.  

c. Make Sustainable Shopping More Attractive and Convenient

One major reason for consumers not acting upon their sustainable shopping goals is unavailability. Fashion retailers can follow store zoning and allot dedicated space for sustainable products. They must train their sales personnel to help consumers find and understand these products.

Brands can make sustainable shopping more attractive with storytelling–how the material was sourced and manufactured. This makes consumers associate their purchases with acts of kindness and being planet-friendly.

Move Towards Sustainable Fashion Supply Chain with Ginesys

Sustainable fashion doesn’t stop with eco-friendly materials–it applies equally to optimizing inventory, wastage, and supply chain. Ginesys’ Retail ERP Software provides tech-oriented solutions to make your fashion brand more sustainable.

Ginesys’ cloud-based Inventory Management Solution offers automatic inventory synchronisation across POS and warehouses. It seamlessly integrates with order management systems and provides features like item serialization, GST tracking, and stock aging analysis. 

Additionally, Ginesys’ Production Management Module offers multi-level BoM, jobber management, and WIP tracking. It helps in efficient raw material planning, cost control, and workflow optimization.

Fashion brands can leverage the following features:

• Integrated ERP and POS systems: Brands can track raw materials, production progress, and finished products, improving end-to-end visibility and traceability.
• Paperless transactions and digital retail: Digital invoicing and e-receipts reduces the environmental footprint.
• Omnichannel integration: Integrates online and offline channels to improve visibility and sales, reduce stockpiles, and optimize logistics costs.

Final Thoughts

Sustainability is no longer an option–it’s a strategic and environmental necessity. Fashion retailers, suppliers, and consumers should work together to create a future-ready and sustainable industry.

Take your next step towards sustainability! Contact Ginesys for a demo today!