Sustainable Supply Chain management in the textile industry

There is an increase in concern for the environmental impact such as GHGs emission and hazardous chemicals discharge along with the wastewater, from the product production process. Likewise the concern in the social impact also rises, in which it include the use of forced and child labor, unfair wages and inhumane treatment of worker in the production process of various industry. Moreover, with the change in business strategies to fast fashion, in which new product collections are launch four times a year. In response, company have change the structure of their supply chain to shorten lead-time, higher inventory turnover, high order fulfilment and lower price for their customer. However, while focusing on these factors, environmental and ethical are being overlooked. With the pressure from the public, laws mandate by the government, as well as the foreseen market opportunity make many of the large company to start thinking about a way to eliminate environmental and ethical impact from their supply chain. Various techniques and instruments are developed in order to help the company to analyze and abolish these problems. Two companies are used as an empirical studies, which are H&M and Inditex. Though the analysis the challenges they faced and instruments and technique they used in response to the challenges, one can clearly observe the different approach in handling the challenges of these two companies. Nevertheless, positive improvement in eliminating environmental and social impact from their supply chain can clearly be seen from their effort