Influence of sustainable supply chain management practices on the organisational
performance: An empirical Evidence from the UK retail clothing industry.
[Name of Student]
[Name of the Institute]
Table of Contents
Abstract ........................................................................................................................................... 4
Chapter One: Introduction .............................................................................................................. 5
Background ................................................................................................................................. 5
Rationale ..................................................................................................................................... 5
Aim and Objectives of Study ...................................................................................................... 6
Review Question ......................................................................................................................... 6
Significance of Study .................................................................................................................. 7
Chapter Two: Methodology ............................................................................................................ 8
Study Design ............................................................................................................................... 8
Research Strategy........................................................................................................................ 8
Keywords .................................................................................................................................... 8
Data Collection ........................................................................................................................... 9
Selection Criteria ........................................................................................................................ 9
Screening and Search Outcome .................................................................................................. 9
Data Analysis ............................................................................................................................ 10
Chapter 3: Review of Literature ................................................................................................... 10
Quality Assessment ................................................................................................................... 10
Thematic Analysis .................................................................................................................... 11
Theme 1: Sustainable Supply Chain Management Practices within the Clothing Industry of
the UK ................................................................................................................................... 11
Theme 2: Impact of Sustainable Supply Chain Management Practices on Organisational
Performance of Burberry, Marks & Spencer and Next Plc .................................................. 15
Theme 3: Strategies to Increase the Influences of Sustainable Supply Chain Management
Practices ................................................................................................................................ 18
Theme 4: The Influence of the Clothing Industry on Environment...................................... 20
Table of Findings ...................................................................................................................... 21
Summary ................................................................................................................................... 25
Chapter Four Findings and Discussion ......................................................................................... 26
Discussion ................................................................................................................................. 26
Chapter Five: Conclusion ............................................................................................................. 32
Introduction ............................................................................................................................... 32
Summary of Findings ................................................................................................................ 32
Recommendations ..................................................................................................................... 33
Research Limitations ................................................................................................................ 33
Research Implication ................................................................................................................ 34
References ..................................................................................................................................... 36
Abstract
The study's primary aim is to assess how sustainable supply chain management strategies
affect organisational performance using empirical data from the UK retail clothes sector. In this
sense, Burberry, Marks & Spencer, and Next Plc have been selected as the three major UK retail
clothing brands. The systematic literature review has been conducted using a qualitative study
design. Thematic analysis is the method of data processing employed in this study. The findings
demonstrate that all businesses are committed to using sustainable supply chains and want to
improve their performance. The findings show that organisations employ specific strategies to
increase the impact of sustainable supply chain management strategies on their ongoing
development. In this regard, it has been demonstrated that two fundamental techniques—risk- and
opportunity-oriented initiatives in sustainability practices—strengthen the supply chain's
sustainability. However, there is a considerable environmental impact when clothing is made in a
production plant. The pollution from corporations that manufacture stylish clothing is primarily
the fault of the garment industry. Due to its compromised distribution networks, usage of synthetic
materials, and ongoing excess, this market is especially detrimental.
Chapter One: Introduction
Background
Evolving supply chain management (SCM) has become a complicated procedure that, due
to globalisation, increasingly depends on social and environmental factors. A transition from
conventional to sustainable supply chain management (SSCM) can be noticed, mainly as more
vendors engage in procurement (Walker and Jones 2012). SSCM and standard SCM possess many
characteristics, yet SSCM also considers social and ecological challenges related to an
organisation's economic advantages. As a result, the ideal way to define SSCM is as "the
administration of materials, data, and foreign investment while taking objectives from all three
aspects of sustainable development, specifically economic, ecological, and social." (Henninger et
al., 2015).
According to Köksal et al. (2017), the globalisation of the textiles and clothing supply
chains and the growing amount of outsourcing to underdeveloped nations (Diabat et al., 2014)
have increased the emphasis on sustainability (Freise and Seuring, 2015). Consequently, it is
crucial to comprehend how to incorporate sustainability and longevity into supply chains that are
dispersed worldwide (Strähle and Köksal, 2015). In reality, during the past few years, both
professionals and scholars have become increasingly concerned with sustainable supply chain
management (SSCM) in principle. In addition to the regular information and growing corporate
responsibility (CSR) initiatives of textiles and clothing firms, it is evident from the volume of
scientific publications (Alhaddi, 2015).
Rationale
Shen (2014) reports that more than 30 million tonnes of apparel are consumed each year
globally, which significantly negatively influences the ecosystem and supply chain. Sustainability
concerns are significant for the apparel sector (Battaglia et al., 2014). Clothing companies
leveraged weaker ecological knowledge and lowered environmental regulations in countries in
their search for lower operating costs (Nagurney and Yu, 2012). It is also noticed that clothing
companies are held accountable for the unsustainable supply chain development. At the same time,
numerous apparel firms understand the value of company sustainability and integrate green
technologies into their supply chains (Baier et al., 2020).
Various environmental and ethical issues in the supply chain have now been mentioned in
the fashion and clothing business. It begins with the overuse of fluids, and chemicals, including
lands for the cultivation of organic fibres, notably cotton; it eventually spreads to the overuse of
water and chemicals and their waste during the manufacturing of fabrics, particularly during the
processes of colouring and completion (Seshadri, 2012). The use of clothing, primarily washing
and tumbling drying, consumes more electricity than the manufacture of the apparel, according to
a study. However, there is a need for more research into the long-term viability of intricate apparel
supply chains in what is known as a "demand pull" business (Saicheua et al., 2012). Therefore, the
primary goal of the current study is to assess how sustainable supply chain management
approaches affect organisational performance using actual research from the UK retail clothing
industry.
Aim and Objectives of Study
The study's main aim is to evaluate the influence of sustainable supply chain management
practices on organisational performance with the help of empirical evidence gathered from the UK
retail clothing industry. In order to achieve this aim, it has been categorised into the different
objectives as indicated below;

To comprehend sustainable supply chain management practices within the UK retail
clothing industry, specifically Burberry, Marks & Spencer and Next Plc.

To determine the influence of sustainable supply chain management practices on the
organisational performance of Burberry, Marks & Spencer and Next Plc.

To explore strategies to increase the influences of sustainable supply chain management
practices on improving the organisational performance of Burberry, Marks & Spencer and
Next Plc.
Review Question
The purpose of developing a research question is to address the research problem. The
research question formed within the study is indicated as below;
Q What is sustainable supply chain management's impact on the organisational performance of
retail clothing brands in the UK?
Significance of Study
The current research is crucial because it is concentrated on the sustainable supply chain
in the UK clothing industry. According to the research, ecological sustainability is one of the key
challenges for this generation and the following ages. Regulating corporate environmental
practices has always been the main emphasis of sustainable corporate development. (Pakdeechoho
and Sukhotu, 2018). However, no such significant results have been obtained. According to
research by Ashby (2018), economic developments and globalisation have greatly increased the
complexity of supply chains, and businesses are increasingly shifting non-core functions to foreign
providers. It has been particularly apparent in the UK apparel sector, as companies have been
pushed to subcontract the production functions to concentrate on customer-facing and designing
operations due to cost constraints, rivalry, and quotas elimination. This sector has endured much
unfavourable criticism for its effects on the climate, especially concerning the wise use of materials
and pesticides, as well as the waste and pollutants it produces (Fletcher et al., 2015). As a result,
it presents a subject for this research that is incredibly suitable given the ramifications for the
supply chain worldwide practice of properly resolving such serious ecological challenges in this
complicated business. When businesses understand the structural and tactical ramifications of
controlling the various streams in the supply chain, it could be essential to consider sustainability
practices.
As a result, the primary objective of the research is to assess how sustainable supply chain
management procedures affect organisational performance in the UK retail clothing industry. The
three insights made by this study are as follows. It begins by understanding the sustainable supply
chain management strategies used by UK clothing companies, including Burberry, Marks &
Spencer, and Next Plc. On the basis of the various organisational approaches to green SCM, the
study also examines the impact of sustainable supply chain management techniques on the
organisational performance of Burberry, Marks & Spencer, and Next Plc. To determine where
sustainable SCM practices may go in the coming years and to identify strategies to increase the
impact of sustainable supply chain management practices on enhancing organisational
performance at Burberry, Marks & Spencer, and Next Plc, it looks at forecasts for the longer-term
of sustainable SCM within companies.
Chapter Two: Methodology
Study Design
According to the study by Tomaszewski et al. (2020), incorporating adequate research
design into the study helps to gain research objectives systematically. The research design selected
for the study is qualitative. The utilisation of qualitative research design help to provide in-depth
insight into the concept and ideas relating to sustainable supply chain management practices in
Burberry, Marks & Spencer and Next Plc in the UK. Furthermore, qualitative research design helps
in subjectively answering the research question. It helps to support a deep understanding of
experiences or phenomena relating to the research question. In addition, the incorporation of
qualitative research design provides a direction to the study to attain objectives. Qualitative design
is based on a conceptual understanding of research, excluding numerical data analysis techniques.
With the help of contextual understanding clarity in research, goals are achieved within the design.
Therefore, an indication of the right research design within the study helps in the utilisation of
high-quality data for the right kind of analysis, leading to a trustworthy conclusion (Busetto et al.,
2020).
Research Strategy
The search strategy utilised within the study includes the use of appropriate electronic
databases along with keywords. The incorporation of electronic databases helps in gathering data
from authentic and reliable sources. Generally, multiple electronic databases can be used within
the study, such as Google Scholar, Science Direct, web of science, JSTOR, and ERIC. Similarly,
in this study database used is Google Scholar and Science direct and, most importantly, the
companies' reports of sustainability for the gain of authentic data. The importance of involving
reliable data within the study increases the value of the study (Hennink and Kaiser, 2021).
Keywords
Within search strategy, involvement of relevant search key terms such as sustainable,
supply chain management, practices, retail industry, clothing industry, apparel, Burberry, Marks
& Spencer and Next Plc, UK, and organisational performance. Keywords can be used along with
Boolean operators such as AND, OR, and NOT (Lefebvre et al., 2019). The use of keywords along
with Boolean operators was done as follows; supply chain management practices OR SCM OR
strategies AND green supply chain AND organisational performance AND clothing industry OR
fashion AND UK AND sustainability influences better search options for reliable data for data
analysis.
Data Collection
The process of data collection within the study plays a crucial role. The involvement of a
reliable data gathering process influences the incorporation of authentic data for the study of
research objectives. In this study, secondary data is collected with help from journals (Clark, and
Vealé, 2018). The incorporation of secondary data into the study influences the involvement of
different aspects relating to sustainable supply chain management for the exploration of
organisational performance. Secondary data help in analysing available data, which saves time and
cost for data gathering and processing. In addition, secondary data incorporates a variety of
different expert perspectives and insights into the study that help to evaluate the research aim in
an efficient manner (Barrett, and Twycross, 2018).
Selection Criteria
The process of selection criteria for the gathering of data is based on inclusion and
exclusion criteria. The indication of inclusion and exclusion criteria helps to show the information
that is necessary to include and exclude within the study while collecting information. In the table
below, the criteria are indicated.
Table 1: Selection criteria
Inclusion
Exclusion
Qualitative design
Quantitative design
a secondary source of information
the primary source of information
Published journal articles
Unpublished articles
Articles published between the year 2010- Articles published before 2010
2022
Articles accessible and present in the English Articles require subscriptions and are present
language
in other languages.
Screening and Search Outcome
Based on the inclusion criteria, all of the publications that had been chosen for further
consideration had their titles and abstracts initially screened. The full dataset was organised in an
Excel worksheet for verification purposes and to keep track of all papers that were studied. The
random selection process was carried out by separately creating the initial data with assistance
from other assessors (Kline and Schiffman, 2014). The researcher was able to choose publications
that were pertinent and simple to obtain to meet the objectives of the study by screening summaries
and full-text studies. However, in order to remove bias, the screening was subsequently completed
with the assistance of two reviewers working separately.
Data Analysis
The process of data analysis helps in the interpretation of data in an efficient manner. In
this study, the data analysis technique used will be thematic analysis. Thematic analysis helps in
the evaluation of selected articles. The evaluation process within thematic analysis helps to
indicate the strength and weaknesses of selected articles. The indication of the strength of articles
thus supports the data interpretation for the exploration of the research topic (Castleberry and
Nolen, 2018). Furthermore, it is also found that with the help of thematic analysis, qualitative data
gathered can be analysed adequately, along with the identification of influencing factors within
the data set relevant to the topic. Thematic analysis is conducted with the help of the formation of
themes based on research objectives. Within this study, the formulation of themes includes
Sustainable supply chain management practices within the clothing industry of the UK, the impact
of sustainable supply chain management practices on organisational performance, and strategies
to increase the influences of sustainable supply chain management practices on improving
organisational performance (Braun and Clarke, 2022).
Chapter 3: Review of Literature
Quality Assessment
There are several techniques available to assist with a systematic literature review quality
assessment because it is crucial to do so. To support research outcomes, the researcher made sure
to evaluate the quality of the articles that were chosen (Rosella et al., 2016). At each stage, a
different reviewer would examine the theme analysis in terms of the credibility and accuracy of
the findings. The topics that the investigator came up with would be reviewed to make sure they
were not being misinterpreted. To evaluate the data by utilising and keeping the appropriate
standards by examining the manual assessments, the preservation of quality is crucial while
obtaining the material from all identified articles. Consequently, with the assistance of reviewers,
articles have been separately categorised. The accuracy and credibility of the information are
improved as a result. After that, the coding was completed with the input of just one reviewer, who
was later rechecked by another assessor (Zeng et al., 2015).
Thematic Analysis
Theme 1: Sustainable Supply Chain Management Practices within the Clothing Industry of the UK
Theme one has put a primary focus on sustainable supply chain management within the
clothing industry of the UK. In this regard, three top clothing brands in the UK have been chosen,
particularly Burberry UK, Marks & Spencer and Next Plc.
Burberry
In terms of Burberry's sustainable supply chain, as they develop, they are creating one that
is more adaptable to shifting customer demands and wants as well as the demands of their
worldwide business (Burberry, 2022a). Additionally, they choose to contribute positively to the
environment by 2040. They are quickening the pace of emissions cuts throughout their wide supply
chain with the goal of reducing them by 46 per cent before 2030. They are dedicated to cooperating
with their providers in aspects such as regenerative agribusiness, circular operating models,
sustainable energy options, and boosting the recyclable packaging of material (Burberry, 2022b).
Figure 1: (Burberry, 2022b)
The sustainable supply chain of Burberry also includes some other practices. For instance,
they are studying the viability of regenerative agricultural techniques in their clothing supply chain
and associated effects on the ecosystem and communities via a relationship with the Savory
Institute's Land. In order to comprehend the regeneration capabilities of their clothing supply
chain, they have also been working with Conservation International. To handle long-term
sustainability in clothing supply networks as well as to engage with Conservation International on
textiles, they also promote Cotton 2040 and attempt to comprehend the advantages of obtaining
regenerative components via their supply chains by collaborating with them (Burberry, 2022b).
Figure 2: (Burberry, 2022b)
According to Burberry Annual Report (2022), it is observed that they are concerned that
contemporary slavery, as well as human rights breaches, could occur along their supply chains for
materials. In order to improve their supply chain transparency, they have added new objectives:

Ensure every essential element can be traced exactly by 2025.

By 2025, all recyclable nylon, as well as polyester, must come from recognised sources,
with nylon or polyester serving as the primary material.

Acquire only cloth which has received accreditation, reflecting the most stringent criteria
for animal protection by 2025.

Purchase only 100 per cent organic fabric by 2025.

By 2025, they want to source all of the material from industrial effluents that have received
certification for their social, ecological, and accountability practices.
Marks & Spencer (M&S)
According to the M&S sustainable supply chain approach, it is established that responsible
sourcing, as well as comprehensive monitoring of supply chain practices, are fundamental to how
they conduct operations and the commitment they offer to their clients (M&S, 2022). M&S strives
to be the most environmentally friendly large international retailer. They have integrated
sustainability into their main strategy to enhance their progress. The Plan is being driven by senior
leadership, and the company is in charge of it. Nevertheless, M&S also expressed a very firm
declaration to Plan A with quantifiable goals, deadlines, and accountability. The Plan engages
providers and is incorporated into every corporate segment and strategic division. All vendors must
pledge assistance for the execution of Plan A, its sustainability initiative. It involves gradually
incorporating characteristics of the Plan A concept into refined products (Grayson, 2011).
Figure 3: Plan A (Grayson, 2011)
Furthermore, as part of the strong growth of its sustainability programme, M&S aims to
achieve net-zero emissions throughout its distribution chain until 2040. In order to "discover
innovative and improved methods of operating business," the corporation declared that it would
collaborate with its suppliers, who are responsible for 97 percent of its category three pollutants.
This entails cutting back on wastage, wrappings with no intention of contributing to destruction,
and sourcing better environmentally friendly clothing (Bloomberg, 2021). Moreover, M&S earned
the GSB supply chain prestigious award in 2012 for bringing about genuinely disruptive
transformation throughout their supply chain. With a huge, international supply chain which M&S
estimates to be responsible for 80% of its carbon emissions, achieving sustainability goals and
raising ethical and ecological criteria requires the cooperation of many different departments (The
Guardian, 2013).
Figure 4: Grayson, 2011
Next Plc
It is discovered that Next Plc is committed to responsible sourcing with regard to its
sustainable supply chain. The Responsible Sourcing Strategy outlines their goal to obtain all of the
primary raw resources they employ legally, ethically, or in accordance with certification by 2025.
Besides that, In their products featuring the NEXT branding, raw fur is not used. It is a retailer
recognised by the Fur-Free Alliance (Next Plc., 2022).
Figure 5: Responsible Sourcing (Next Plc, 2022)
Moreover, it is observed that they pledge to eliminate dangerous substances emission
throughout the supply chains for clothing as well as leather as a participant in the Zero Discharge
of Hazardous Chemicals (ZDHC) initiative. Secondly, their Chemical Strategy outlines their
particular requirements for the employment of substances in the production of their commodities.
Since their supply chain accounts for the bulk of their liquid used as a store, modelling it helps
them discover vulnerable areas and suppliers they could collaborate with to increase water
conservation. The sustainable procurement of timber, as well as commodities incorporating timber,
is a priority for Next Plc. as well. By only utilising woods and linen that have been sourced
ethically, they intend to lessen their influence and maximise the positive effects on society and the
ecosystem (Next Annual Report, 2022).
Theme 2: Impact of Sustainable Supply Chain Management Practices on Organisational
Performance of Burberry, Marks & Spencer and Next Plc
Theme two has emphasised the impact of sustainable supply chain management practices
on the performance of Burberry, M&S and Next Plc. According to the report, Burberry's
organisational performance is improving. Due to the enhancement in the quality of their total sales
in the existing year following the effect of COVID-19 on business in the preceding season,
Burberry's sales throughout the financial year 2021/22 improved by 18%. Similarly, in contrast to
pre-pandemic norms, digital full-price transactions surged by significant double figures. Burberry
recently made advancements to the virtual purchasing experience, such as better personalisation
and improved product exploration, and as a result, they are experiencing high connections from
people purchasing online across the globe (Burberry Strategic Report, 2022). Furthermore,
according to Bloomberg (2022), Burberry raised its profits to the greatest point in recent times as
a result of attempts to elevate the status and value of its business. In a similar manner, Burberry's
global revenue has been rising, contributing to the brand's excellent financial performance
(Statista., 2022).
Figure 6: Burberry Revenue (Statista, 2022)
Similarly, M&S's performance was demonstrated to have a 3.8% sales boost, which was
largely determined by digital clothes sales. The industry is now dynamic, and prevalence has
increased to approximately 34%. Operating profit following item adjustments increased
significantly, which was a result of the better full-price mixture. With about 11% of purchases
being completed in-store, MS2 implemented a number of enhancements to the online offer and
service. Parallel to how entire trading has outperformed similar intervals in 2021 and 22, apparel
has continued to surpass the market as a whole this financial season (M&S Media Release, 2022).
Additionally, the business generated roughly 10.9 billion in revenues in the UK and abroad for the
fiscal year that ended in 2022. (Smith, 2022).
Figure 7: M&S Revenue (Smith, 2022)
Similar to this, it is noted that the primary estimate for before-tax profit for Next Plc has
increased by £10 million. Sales volumes represented a higher proportion of all pricing transactions
throughout the period, increasing profit by £6 million. Because of widespread stock constraints in
the business, there was unusually little inventory for sale the year before. As a result, sale stock
this season increased by 30% over the previous year. The success of pricing transactions in retail
has also been significantly stronger than expected and is increased by 4.7%. Additionally, a strong
turnaround of last year's closure tendencies has driven sales during the first half of the season.
Retail sales increased again, but digital expansion looks to have returned to its longer-term trend
(Next Trading Statement, 2022).
Figure 8: (Next Trading Statement, 2022)
Theme 3: Strategies to Increase the Influences of Sustainable Supply Chain Management Practices
The third theme concentrated on the methods used by organisations to increase the impact
of sustainable supply chain management techniques on their operational effectiveness. In this
regard, it has been discovered that two main techniques—risk-oriented and opportunity-oriented
strategies in sustainable supply chain management—are used to strengthen the sustainable supply
chain, according to a study conducted by Harms et al. (2013).
Risk Oriented Strategy
According to Peter (2010), businesses face a variety of economic, ecological, and societal
risks and problems when they have been pushed to assume responsibility for their own operations
and supply networks. It is why SSCM addresses a wide range of concerns, including the prevention
of children and slave labour, the substitution of harmful chemicals, unsustainable fuel and material
use, and the maintenance of biodiversity. Codes of behaviour, rules, and norms could also be used
as criteria for assessing and choosing suppliers, including for establishing a minimal level of
progress necessary to produce more sustainable goods. The particular company can also request
labelling and certifications from its suppliers to verify their adherence to social and ecological
standards. Thus it is deemed legitimate to require compliance with such norms, rules, and rules in
order to reduce risk and increase performance throughout the supply chain.
Because the focal corporation controls its supply chains, this likewise assesses its suppliers
by establishing standards and minimums. Suppliers can thus offer finished self-evaluations of
ecological or social criteria. Benefits or fines may go along with supplier assessment as a
component of supplier management procedures. In the worst-case scenario, a poor appraisal could
result in the economic dealings being broken off. Nevertheless, a termination necessitates a fresh
supplier investigation and decision that adds to the expense. Developing suppliers as a replacement
for this termination is a crucial component of the opportunity-oriented strategy (Harms et al.,
2013).
Opportunity Oriented Strategy
The core firm intends to create and market sustainable products with its comprehensive
secondary strategy, "supply chain operations for sustainable materials." According to the study,
new behaviours, including some that go against conventionalised "best" practise, and excellent
practices in conventional supply chain management seem to be equally important to creating a
sustainable distribution network (Pagell and Wu, 2009). In order to widen the range of buyersupplier partnerships, a life-cycle view is used, as well as a market- as well as opportunity-oriented
viewpoint.
The importance of supplier growth is underlined with reference to supplier management
procedures. Discussions with suppliers, collaborative creation of new services and goods, making
people fully cognizant of sustainability issues, and assuring supplier continuation are just a few
examples of potential supplier development initiatives. The focused business may spend money
on the training and support of its suppliers as well as subcontractors. It could also utilise additional
targeted initiatives, like forming an R&D partnership or working jointly to minimise CO2 pollution
in the distribution chain in conjunction with its vendors. Consequently, it is crucial that businesses
start thinking about a methodical examination and expansion of their global supplier network
within a set of sustainability-related issues, for instance, water and energy, efficiency, the impact
of carbon, and or child forced labour (Reuter et al., 2010). An increasing percentage of businesses
have also started to include environmental management systems into their corporate strategies and
establish ecological development initiatives, as per Guoyou et al. (2012), in response to the issue
of ecological deterioration. When a focal firm improves its vendors, it commits resources and time
to raise the efficiency of the supplier. Businesses might work together with vendors in order to
acquire new information. So, supplier growth can result in the creation of new items and methods
that benefit both suppliers and buyers.
Theme 4: The Influence of the Clothing Industry on the Environment
Due to its emphasis on the impact of the clothing sector on the ecology, the aforementioned
issue is recognised as the main theme. The emissions from the fashion clothing brands are
primarily attributable to the garment sector. The industry generated over 2.1 billion tonnes of GHG
pollutants in 2018. Owing to its broken distribution networks, usage of synthetic fabrics, and
ongoing oversupply, this segment is particularly damaging. The supply networks for the garment
sector are dispersed throughout emerging economies with lax regulatory requirements. Even when
businesses set sustainability considerations above the law, it is challenging to monitor adherence
due to distance. In order to achieve quick lead times, the finished product would be delivered by
air, increasing emissions of carbon dioxide (Wren, 2022).
The clothing business, particularly premium or high-end companies, depends on
petroleum-based manufactured fabrics, including nylon and polyester. Substantial pollutants have
been produced during the production of these fabrics; for instance, one moderate fabric t-shirt is
expected to generate 5.5 kilos of CO2, relative to 2.1 kilograms for a cotton t-shirt (Nature Climate
Change, 2018). Synthetic fibres are also non-biodegradable as well as challenging to convert to
raw resources. Even when a company or customer makes an attempt to reuse clothing, it frequently
fails.
Lastly, companies in the clothing business frequently manufacture more stock than they
could actually market. A business sustainability organisation called Global Fashion Agenda (2021)
claims that every sec, a trash truck's value of clothing is dumped in dumpsters. Customers have
been pushing for reform in current years as they have grown more conscious of the effects of their
apparel. The majority of clothing companies had started implementing sustainability programmes
by the 2010s as well as had started releasing yearly sustainability assessments. However, they are
not making enough of an impact on the pressing climate catastrophe.
By 2030, the apparel industry would add to worldwide temperature changes exceeding the
IPCC's 1.5°C thresholds, also with existing sustainability policies in effect (Wren, 2022). In order
to prevent the environment from being irreparably harmed, the clothing sector is expected to
minimise its overall CO2 emission to under 1.1 billion meter tonnes by 2030, a 48 percent
reduction from present levels. No enterprise that produces clothing in such large quantities can
actually be deemed "green" until every unique product can be assimilated into the supply chain.
However, the rising popularity of affordable apparel suggests that fast fashion won't be quickly
overtaken. Given how firmly anchored the sector is in the world economy, it is crucial to confront
the issues with viable, sustainable approaches. Fashion retailers need to reassess their current
initiatives and aggressively involve every stakeholder throughout the supply chain in an attempt
to dramatically decrease GHG footprints and ecological impact (McKinsey, 2022).
Figure 9: McKinsey, 2022
Table of Findings
Themes
Strategies
Research
to Harms
Increase
the 2013
Influences
of
et
Aim of Study
al., This
Methods
study A
examines
Findings
quantitative While handling
two study of large- as supply chains for
SSCM strategic well as mid-cap sustainable
Sustainable
solutions to the firms mentioned materials,
Supply
supply chain in on the German supplier growth
Chain
Management
Germany's
top stock
market offers
Practices
stock
during the fall corporate
corporations.
and
winter
2008/2009.
a
of opportunityoriented strategy
as opposed to
vendor
assessment and
selection, which
use
a
risk-
oriented specific
view.
Major
German massive
stock
corporations
primarily
employ
risk-
oriented SSCM
tactics,
according to the
findings.
Peter, 2010
This
research Case studies and The results of
addresses
issues
the a
quantitative this
of study
research
reinforce
successful
previously held
cooperative
ideas
sustainability
resource-based
efforts, including
perspective, yet
both respects of
they also apply
member
similar ideas to
adherence to the
entrepreneurship
proposal's rules
studies
and
building
external
in
the
when
opportunities'
sustainable
support.
supply
chain
programmes that
are
optional.
They thus pave
the
way
for
additional study
using both ideas
and
assisting
businesses
to
enhance
the
formulation
of
social
or
ecological
requirements for
their distribution
network.
Pagell and Wu, The aim of the Ten
2009
study
is
exemplary According to the
to firms'
establish a more studies
comprehensive
model
presented.
of
sustainable
supply
case analysis,
new
are behaviours,
many of which
go
against
conventionally
chain
management.
recognised
"best"
practise,
and
excellent
practices
in
conventional
supply
chain
management are
equally
important
to
creating a more
environmentally
friendly
chain.
supply
Guoyou et al., This study aims Primary
According
2012
to investigate the Qualitative
empirical
effects
findings,
of
to
stakeholders on
international
the adoption of
consumers are a
environmentally
major
friendly
behind
processes
green
creation.
and
product
force
businesses'
adoption
of
green processes
and sustainable
product
innovation
strategies.
The
impact
is
restricted to the
application
of
sustainable
process
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Summary
From the research, it has been revealed that Burberry is committed to working with its
suppliers on issues including regenerative agriculture, circular operational processes, renewable
energy sources, and promoting recyclable material packing. The same goes for M&S, which aims
to be the most ecologically friendly major worldwide store. To accelerate their success, they have
incorporated sustainability into their major approach. Similar promises are made by Next Plc,
which promises to stop toxic material emissions from occurring anywhere throughout the supply
chains for both leather and clothes. The brand's great financial success is further emphasised by
the fact that Burberry's total revenues have been growing as a result of its sustainable supply chain
policies. Similar to how M&S's performance was shown to have improved sales, which were
mostly driven by online clothing sales. Parallel to this, Next Plc's overall sales during the period
constituted a bigger percentage of all price transactions because of its sustainable supply chain
policies.
Additionally, it has been found that the sustainable supply chain is strengthened by the
adoption of two key strategies, specifically risk-oriented and opportunity-oriented plans, in
sustainability management. Besides that, it is also summarised that inexpensive clothing is
becoming more and more popular, though, which indicates that fast fashion won't be rapidly
replaced. Given how deeply ingrained the sector is in the global economy, it is imperative to
address the problems using workable, sustainable solutions.
Chapter Four Findings and Discussion
Discussion
The primary objective of the study is to assess how sustainable supply chain management
strategies affect organisational performance using empirical data from the UK retail clothes sector.
In this regard, three clothing companies—Burberry, Marks & Spencer, and Next Plc.—have been
selected. Sustainability in the supply chain has become a top goal for numerous clothing and textile
firms, as per Shen et al. (2018). Sustainability concerns in the apparel and textiles industry have
gained a great deal of emphasis as being among the most damaging sectors of the global economy
(Boström & Micheletti, 2016). Integrating sustainability in garment and clothing supply chain
management is difficult due to geographically extensive and complicated worldwide
manufacturing networks, in addition to the combined demand for pricing and lead time.
Particularly when manufacturing is transferred to nations with cheaper labour costs, the conversion
of raw resources into completed clothing has substantial detrimental effects on the ecology and
society, particularly pollution of air and water as well as the utilisation of human labour (Perry and
Towers, 2013).
With respect to Burberry, it is found from the report of ACAEW (2021) that Burberry has
created a strategy for holding itself responsible for meeting its significant carbon reduction goals.
By making internal investments in the environment and trying to create more sustainable supply
chains in the luxury market, Burberry is dedicated to upholding that tradition today. Particularly
for businesses, global warming poses a serious danger which could definitely be reduced by
collective action on all fronts. The environmental goals of Burberry serve as a catalyst for further
climate action inside the company. Burberry, like many other businesses, is under increasing
pressure from outside parties. The business anticipates a rise in regulatory oversight of carbon
pollution. Customers from Generation Z and Millennials, which account for a sizeable chunk of
Burberry's clientele, are concerned with a company's green reputation.
According to the research done by Robinson and Hsieh (2016), Burberry is still realigning
its company in favour of a brand-led as well as customer-centric strategy, as well as recovering its
corporate heritage and fundamental value propositions. This involves adding additional
Britishness to its primary supply network. As a result, Burberry offers an intriguing setting for
researching the reshoring-based rejuvenation of supply chain strategy. Burberry used to have a
tradition of combining the UK and offshore procurement; however, the necessity to retain
comparative benefit and bolster the business's luxury standing globally has been the justification
given for why foreign production has once again become a routine procedure (Tokatli 2012).
Unfortunately, Burberry's market dominance deteriorated as a result of the condemnation
surrounding the company's decision to close UK plants and move a portion of its manufacturing
overseas. In order to focus on manufacturing and enable Burberry to underline once again that its
legacy products are manufactured in Britain, plants in Europe and the USA were shut down.
In the beginning, Burberry adopted a unique product production method for certain of its
factory divisions in an attempt to optimise industrial scale economies due to costs and competitive
challenges (Blyton and Jenkins 2012). Unfortunately, this modification merely made certain
companies weaker and finally forced them to close. Over the past few seasons, Burberry's business
strategy has undergone a significant change. Due to this, the company now operates under a
solitary Burberry label that is fueled by a mixture of its legacy, has full influence over production
and allocation due to the termination or purchase of licencing contracts, focuses on the commodity
instead of the label, and embraces digitalisation in clothing. Burberry's core business adjustments
necessitated the renewal and realignment of its supply chain approach, which included integrating,
and reestablishing production operations in the UK, reinventing the business as distinctly British,
and refocusing on legacy goods (Robinson and Hsieh, 2016).
Regarding Marks & Spencer, in a similar context, there are rising concerns about driver,
warehousing, and supplier workforce constraints that are adding to the strain on all businesses,
particularly M&S. They have several hiring schemes, some of which involve incentives
specifically for drivers. In order to better control the demands, they are additionally boosting truck,
cages, and trays fill as well as adjusting supply timelines and depots selection procedures. They
also anticipate major supply chain price hikes in the 2nd quarter of the season and additional oncosts in the following fiscal year (Donati, 2021). The industry is, nevertheless, comparably
effectively positioned for these difficulties due to its focused supplier network and significantly
enhanced professional relationships with logistical suppliers. Inventory was being harmed by
recent interim restrictions at dispatching terminals, restricted supply of sea containers, and backlog
at the port of destination. Both the transfer of stock from suppliers and thus the shipment and
transportation of products to stores have been postponed as a result of these interruptions. As a
result, M&S is actively watching it with the assistance of its logistics suppliers, utilising its
capacity and effective facilities, and giving priority to the item that is in the highest need (Donati,
2021). The upscale shop M&S is expected to declare that sections of its aisles will be disrupted
until next winter. According to documents from an analyst conference, M&S executives reported
that the company had been suffering inventory shortages for approximately three weeks (Barker,
2021).
There are now numerous ethical and environmental concerns raised in the apparel and
fashion industries' supply chains. It starts with the excessive use of fluids, chemicals, and land for
growing organic fibres, particularly cotton; later, it spreads to the excessive use of water,
chemicals, and waste produced by them when making garments, especially during the colouring
and finishing processes. The M&S sustainable supply chain approach claims that extensive
monitoring of supply chain processes and ethical sourcing are essential components of how they
conduct business and the promise they make to their customers (M&S, 2022). As a major
multinational retailer, M&S aspires to lead the industry in environmental protection. To accelerate
their success, they have incorporated sustainability into their major approach. Senior management
is the responsibility of the Plan, which is under the control of the business.
Similar to this, Next Plc. has set a goal of obtaining 100% of their cotton by 2025 from
ethical suppliers, which they describe as recyclable, accredited organic, and verified biogenic in
conversions. Next anticipates that its suppliers will obtain cloth in accordance with its policies and
work to convey its position on this matter throughout the supply chain (Next, 2022). In addition,
Next Plc has predicted a decrease in revenues in the lead-up as a result of a number of concerns,
such as pricing, a lack of qualified workers, and issues with the distribution chain. Given current
strong selling, the elevated market and digital style clothes behemoth warned stock accessibility
to continue difficult. It claimed that this was due to consumers' pent-up desire being lessened and
improving supply problems. It claimed that when consumers tightened their budgets,
hyperinflation has also been expected to affect supply. The company's stocks remained dropped
2.6%, reaching £80.86. The company increased its full-year increased sales expectation from
10.7% to 11% while maintaining its profitability forecast of £800 million. According to Next,
while stock supply has increased, it is still a challenge, with manpower constraints in the UK's
logistics and warehouse networks adding to bottlenecks in their global supply chain. Nevertheless,
up to this point, it appears that robust fundamental need outweighs stock limits (Williams and
Pegden, 2021). It has been discovered that Next Plc is dedicated to ethical sourcing in order to
maintain a sustainable supply chain. By 2025, they intend to have obtained all of the major raw
materials they use lawfully, responsibly, or in conformity with accreditation, according to the
Responsible Sourcing Strategy. Additionally, raw fur is not included in their items with the NEXT
label. The Fur-Free Alliance has recognised it as a retailer (Next Plc., 2022).
No enterprise that produces clothing in such large quantities can actually be deemed
"sustainable" until every individual outcome can be assimilated into the supply chain. However,
the rising popularity of affordable apparel suggests that the apparel industry won't be immediately
replaced. Given how firmly anchored the sector is in the world economy, it is crucial to confront
the issues with viable, sustainable solutions. Fast fashion companies need to reassess their existing
initiatives and aggressively involve every stakeholder throughout the supply chain, in addition to
dramatically decreasing GHG footprints and ecological effects (Wren, 2022).
According to Sheyadi et al. (2019), the natural environment also deteriorates as a
consequence of environmental issues like contamination, rising temperatures, quick biodiversity
loss, and loss of species variation. Authorities, communities, businesses, and people are taking
care of environmental affairs as a consequence of the premise that all these considerations are
constantly getting worse. Opposition from the public and authorities has forced businesses that are
responsible for climate impacts to reassess their processing parameters and supply chains.
Sustainable supply chain management (SSCM), together with the recognition of corporate
accountability stemming from actions throughout the supply chain, has begun to gain popularity
in this regard.
Businesses face increasing hurdles as a result of rising environmental consciousness.
Numerous businesses prioritise preserving the environment, and they take part in sustainable
supply chain management practices like eco-design, responsibly sourced, composting, and
reprocessing. Burberry, M&S and Next Plc have also been doing the same. Even though these
activities are essential for competitiveness, they are not necessarily profitable economically
(Fahimnia et al., 2015). According to certain studies, environmental responsibility and economic
success are positively correlated (Aigbedo, 2019).
Due to growing market legality and greater acceptance, sustainable practice-oriented retail
companies would also be capable of distinguishing themselves apart from their rivals at the similar
time they see higher sales benefits. Therefore, adopting sustainable practices can have a massive
influence on a company's performance in terms of sustainability via cost savings, enhanced
capability for elevated competitive advantage, improved manufacturing and ecological
performance, development of new functionality, waste minimisation, and product and procedure
performance enhancements (Wijethilake, 2017).
In addition, according to Cankaya and Sezen (2018), retail clothing companies must locate
the roots of environmental issues within their purview, in addition to properly comprehending
fundamental environmental issues and providing remedial measures. Companies damage the
environment by tampering with toxic materials, air, groundwater, and dirt which they discharge
into the ecosystem while creating products and services to satisfy demands. The capacity of a
company to cut emissions, trash, utilisation of dangerous chemicals, and ecological mishaps is
measured by its sustainability impact. SSCM procedures include all actions taken to lessen the
negative consequences that a company's goods or services have on the ecosystem. By decreasing
the ingestion of pollutants and harmful chemicals, decreasing the frequency of pollution incidents,
and increasing community wellness, such activities have a favourable impact on the advancement
of sustainability performance (Eltayeb et al., 2011).
In a research study of sustainable practices used by small and medium-sized businesses,
such approaches resulted in the lowest levels of materials and water consumption as well as waste
output. Similar to this, sustainable practices, according to Azevedo et al. (2011), aid in enhancing
sustainability impact by lowering company waste. In general, research indicates that sustainable
practices, including lowering waste output and material and energy consumption, have a
favourable effect on environmental performance. To generate meaningful sustainability initiatives
within their enterprises, other commercial organisations constantly search for environmental
supply chain competencies inherent in their suppliers. Such alliances show an integrative process
where people from various industries cooperate to accomplish common objectives (Hamakers et
al., 2011). Partnering with these suppliers can lead to the company learning about eco-friendly
flexible packaging for products or better transportation strategies that it was apparently unaware
of (Johnson et al., 2018). Effective formulations and assessment of requirements for acquiring
sustainable products and external conditions for strategic sourcing may be made possible by
understanding from providers. As a result, clothing companies with a high supply chain
eccentricity would aggressively include suppliers in these initiatives to improve the environmental
impact of SSCM processes (Cousins et al., 2019).
Chapter Five: Conclusion
Introduction
This is the last chapter of the study. It involves a summary of findings, recommendations,
research limitations, and research implications.
Summary of Findings
With the aid of empirical data acquired from the UK retail clothing industry, the research
is being done to explore the relationship between SSCM practices and performance in
organisations. The study specifically looked at whether implementing environmental practices in
supply chain management had a favourable effect on the performance of UK retail clothes
companies. The study is anticipated to offer recommendations on how to implement environmental
supply chain management techniques and improve their global competitiveness, which would have
a positive economic impact. There are currently a lot of concerns about reducing greenhouse gas
emissions and protecting the environment for future generations. This study's examination of the
ecological implications of supply chain management is its sole objective. Thus it will go a
considerable way toward resolving this issue.
The study's findings suggest that Burberry's supply chain contains more environmental
initiatives. For instance, through a partnership with the Savory Institute's Land, the company is
researching the sustainability of regenerative farming practices in their textile supply chain and the
implications on the ecosystem and individuals. They have also been collaborating with
Conservation International to understand how their clothes supply chain can regenerate. Burberry's
Annual Report for 2022 states that they are worried about the risk of modern slavery and other
human rights violations throughout their supply chains for raw materials. Similar to M&S, Plan A
received a very solid commitment from M&S with specific objectives, due dates, and
responsibilities. Every business division and strategic division has adopted the Plan and engaged
providers. All suppliers are required to provide support for the implementation of Plan A, its
sustainability strategy. Additionally, Next Plc wants to minimise its impact and maximise its
benefits for society and the environment by only using woods and linens that have been sourced
responsibly. Additionally, sustainable supply chain methods have a major impact on the
performance of Burberry, M&S, and Next Plc.
The results demonstrate that organisations utilise certain ways to increase the influence of
sustainable supply chain management practices on their continuous improvement. In this context,
it has been shown that the sustainable supply chain is strengthened using two key methods: riskoriented but also opportunity-oriented approaches in sustainability practices. However, the
manufacturing of clothing at a production facility has a significant impact on the environment. The
garment industry is mainly responsible for the pollutants from fashionable clothing companies. In
2018, the sector produced more than 2.1 billion tonnes of GHG pollutants. This segment is
particularly harmful due to its damaged distribution networks, use of synthetic textiles, and
persistent oversupply.
Recommendations
There are some recommendations for the current study, according to Tchaikovsky (2017).
Initially, in order to formulate more suitable supply chain sustainability techniques, successfully
incorporate stakeholder interests into the configuration of those techniques, as well as achieve
long-term financial viability, logistics managers in the retail apparel industry should indeed work
to comprehend the connection among both SSCM and interested parties' stress. Secondly, supply
chain leaders must consider integrating the ecological, ethical, and financial aspects of corporate
operations because there is a relation between firms' SSCM and financial performance.
Likewise, it is recommended that retail apparel companies collaborate with one another to
promote SSCM methods in order to attain organisational achievement instead of simply because
it is the right thing to do. The achievement of a company's success must be supported by SSCM
practices. Organisations must place a high priority on integrating the societal, financial, and
ecological components in order to assure their sustainability and that of the generations (Wang et
al., 2015).
Research Limitations
The recent research offers empirical evidence in favour of the complementary nature of
sustainable management approaches, but it misses detail regarding the primary drivers of these
complementary connections. Knowing how context-specific elements may lead to favourable or
unfavourable results could well be improved by researching moderation and/or mediating
variables, a subject that is relatively unexplored in complementary concept research. This analysis
confirms the widely held assumption that SSCM policies can greatly improve a company's
sustainability impact, but it has not yet been determined what the primary motivations are for
adopting proactive procedures. Similarly, the creation of the SSCM competence may have been
primarily influenced by the demands of certain key stakeholders that are more ecologically
conscious. Those key stakeholders may vary depending on the situation, which would affect the
performance results (Sheyadi et al., 2019). To identify the factors that can lead to immediate
commercial gains, more research must be done in both emerging and industrialised nations. A
dyadic buyer-supplier relationship might be used as an analysis unit in additional studies that can
lead to a better knowledge of how the supply chain players can impact a company's capacity to
create SSCM capabilities.
In addition, the application of SSCM techniques in UK firms that sell clothing was the
main focus of this study. The framework can also be changed to reflect different kinds of
businesses, such as manufacturers and wholesalers, as well as different retail industries like
footwear and food. Similar to that study, this one used a thorough examination of the literature.
Further, the current study can make use of the cross-sectional questionnaire survey. However, the
surveys can be conducted on serious, informed, and authorised individuals and the accuracy and
authenticity of the data gathered could be guaranteed by reliable analytical techniques and a
sufficient sample selection (Sezen et al., 2012). Some of the study's parameters have no association
with one another, as was already established. Particularly, SSCM was unable to demonstrate the
anticipated impact on business performance. Subsequent research could thus closely monitor these
linkages to examine how SSCM influences business success (Cankaya and Sezen, 2018). Despite
an upsurge in studies on environmental concerns in the UK, there are very few empirical studies
on SSCM.
Research Implication
It is asserted that SSCM techniques must be implemented by clothing manufacturing
companies in the UK in cooperation with customers and suppliers because sustainable
development is a distribution network level necessity. Management teams in the UK apparel sector
would have to acquire SCM abilities and skills in contrast to those needed for organisational-level
management. Businesses increasingly need to concentrate on streamlining the supply chain to
boost organisational performance. The researcher stresses the significance of UK apparel
companies implementing SCM techniques and working to enhance supply chain procedures in
order to better meet the supply chain's end customer. But from a quite logical viewpoint,
management teams are accountable for the success of their companies. Company leaders would
use this strategy if, in the end, it leads to increased organisational performance and buyer
satisfaction as well as the supply chain. The researcher sought to ascertain whether SSCM practises
that emphasise cooperation with consumers and suppliers would therefore enhance organisational
performance and, as a result, the surroundings (Green et al., 2012).
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