Circular fashion: evolving practices in a changing industry

AbstractToday we are witnessing a change in the production paradigm of the fashion industry. The negative impacts of different processes along the supply chain are evident and consumers have begun to shift to brands seeking effective organizational strategies and supply chain-management models that consider the safeguarding of the planet’s resources and demonstrate respect for people. Impelled by these developments, fashion brands are moving from market-driven to purpose-driven strategies. The fashion industry is now recognizing the circular economy (CE) as the leading entrepreneurial model for addressing supply-chain issues related to sustainability. However, there are still gaps in the levels of environmental, economic, social, and cultural sustainability being achieved. Implementation of this model on a large scale is still in the early stages and recent experience indicates a need to rethink the current linear system to enable different actors along the fashion-supply chain to adapt. Further, the fashion system lacks a holistic vision that can support and guide this sustainable transformation toward CE. This article describes how several companies are currently implementing circularity and presents evidence that an emphasis on this concept is relevant for the global fashion industry. It aims to show how emergent design practices are supporting fashion companies to better focus their sustainability agendas, to approach them in a holistic manner, and to consider all business processes with the goal of implementing sustainable development strategies. Analyzing contemporary design-driven best practices, the article introduces a taxonomy highlighting effective ongoing strategies (mini-loops) leading to incremental changes toward CE. Furthermore, it synthesizes possible future trajectories that could lead the fashion system to finally close the loop of circularity

A demand-driven approach for a multi-agent system in Supply Chain Management

This paper presents the architecture of a multi-agent decision support system for Supply Chain Management (SCM) which has been designed to compete in the TAC SCM game. The behaviour of the system is demand-driven and the agents plan, predict, and react dynamically to changes in the market. The main strength of the system lies in the ability of the Demand agent to predict customer winning bid prices - the highest prices the agent can offer customers and still obtain their orders. This paper investigates the effect of the ability to predict customer order prices on the overall performance of the system. Four strategies are proposed and compared for predicting such prices. The experimental results reveal which strategies are better and show that there is a correlation between the accuracy of the models' predictions and the overall system performance: the more accurate the prediction of customer order prices, the higher the profit. © 2010 Springer-Verlag Berlin Heidelberg

Agency Theory and Supply Chain Management: Goals and Incentives in Supply Chain Organisations

Purpose Agency theory (AT) offers opportunities to examine how the risk of opportunism can be prevented or minimised along supply chain organisations using incentives to achieve goal alignment. Methodology The study presents evidence of how members of such organisations achieve goal alignment through the use of incentives by empirically examining two complete supply chain organisations, including final customers, within the UK agri-food industry using a case study methodology. Findings The findings show that contractual goals can be divided into two different categories, shared supply chain organisational goals, and independent goals of each individual participant. In addition to monitoring ability, incentives can also be classified into short term financial and long term social incentives. Product attributes, in particular credence attributes, are also identified as having implications for both goals and incentives. Research limitations The supply chain perspective and case study methodology mean that the research findings cannot be generalised to other supply chains. A further limitation of the research is the use of different methods of data collection at the final customer point. Practical Implications Managers must ensure that appropriate incentives for all departments and individuals are designed to deliver the strategic goals of the supply chain organisation

Farm SMEs sustainability assessment based on Bellagio Principles. The case of Messinian Region, Greece

Purpose: Sufficient support of the sustainability of farm products embedded in a region (such as Products of Designated Origin / PDOs) to overcome significant obstacles to access domestic and remote markets. Main research question is how to overcome such inherent difficulties and transform them into challenges and opportunities to the new market environment. Design/methodology /approach: Combination of simplicity with the complicated issue of sustainability for awareness of small farmers SMEs and their collective representatives. Improve the understanding of the Sustainable Supply Chain Management (SSCM), to facilitate sustainability through use of the ‘Bellagio Principles’ for assessing sustainability of local farm products and facilitating further enhancement. Use of certain PDOs farm products of the Messinian region of Greece, such as local Sfela Feta cheese, olive oil, olives and raisins, to assess sustainability and improvement. Formation of a conceptual constructive action R&D framework of broader use in building-up and performing implementation of holistic supply chain strategy. Expected Findings: Providing better understanding of the SSCM. Insights on how SMEs co-operatives can collectively apply holistic strategies concerning local farm PDOs to fulfil competitiveness and sustainability requirements, under variant product and market conditions. Originality / Value : Improving the know-how, focusing on the sustainability of regional, traditional products and its effects upon supply chain performance and market access. Practical implications for regional-based farm SMEs in the design of holistic value creation strategies to produce sustainable competitive advantage. Interactive cause and effect dynamic implications of sustainable development on social, economic and physical environment

Designing sustainable cold chains for long-range food distribution: Energy-effective corridors on the Silk Road Belt

Modern food production-distribution processes represent a critical stressor for the environment and for natural ecosystems. The rising flows of food across growing and consumption areas couple with the higher expectations of consumers for the quality of products and compel the intensive use of refrigerated rooms and transport means throughout the food supply chain. In order to aid the design of sustainable cold chains that incorporate such aspects, this paper proposes a mixed integer linear programming model to minimize the total energy consumption associated with the cold operations experienced by perishable products. This model is intended for food traders, logistics practitioners, retail managers, and importers collaboratively called to design and plan a cost and environmentally effective supply strategy, physical channels, and infrastructures for cold chains. The proposed model is validated with a case study inspired by the distribution of two example food products, namely fresh apples and ice cream, along the New Silk Road connecting Europe and China. The illustrated analysis investigates the effect of alternative routes and transport modes on the sustainability of the cold chain. It is found that the most energy-efficient route for ice cream is via rail over a northern route and, for apples, is via a southern maritime route, and, for these two routes, the ratios of the total energy consumed to the energy content of the food are 760 and 913, respectively. By incorporating the energy lost due to the food quality decay, the model identifies the optimal route to adopt in accordance with the shelf life and the conservation temperature of each product

Optimal management of bio-based energy supply chains under parametric uncertainty through a data-driven decision-support framework

This paper addresses the optimal management of a multi-objective bio-based energy supply chain network subjected to multiple sources of uncertainty. The complexity to obtain an optimal solution using traditional uncertainty management methods dramatically increases with the number of uncertain factors considered. Such a complexity produces that, if tractable, the problem is solved after a large computational effort. Therefore, in this work a data-driven decision-making framework is proposed to address this issue. Such a framework exploits machine learning techniques to efficiently approximate the optimal management decisions considering a set of uncertain parameters that continuously influence the process behavior as an input. A design of computer experiments technique is used in order to combine these parameters and produce a matrix of representative information. These data are used to optimize the deterministic multi-objective bio-based energy network problem through conventional optimization methods, leading to a detailed (but elementary) map of the optimal management decisions based on the uncertain parameters. Afterwards, the detailed data-driven relations are described/identified using an Ordinary Kriging meta-model. The result exhibits a very high accuracy of the parametric meta-models for predicting the optimal decision variables in comparison with the traditional stochastic approach. Besides, and more importantly, a dramatic reduction of the computational effort required to obtain these optimal values in response to the change of the uncertain parameters is achieved. Thus the use of the proposed data-driven decision tool promotes a time-effective optimal decision making, which represents a step forward to use data-driven strategy in large-scale/complex industrial problems.Peer ReviewedPostprint (published version

Sustainable Development Report: Blockchain, the Web3 & the SDGs

This is an output paper of the applied research that was conducted between July 2018 - October 2019 funded by the Austrian Development Agency (ADA) and conducted by the Research Institute for Cryptoeconomics at the Vienna University of Economics and Business and RCE Vienna (Regional Centre of Expertise on Education for Sustainable Development).Series: Working Paper Series / Institute for Cryptoeconomics / Interdisciplinary Researc

Sustainable Value Proposition Design in a Product-Service System

Many companies have started to add services to their tangible products in order to defend themselves from increased competition from low-cost economies. Research regarding the transition towards product-service systems (PSS) and how the PSS providers' business models are affected exists, but there is a lack of research regarding how the suppliers to the PSS providers are affected by the transition towards PSS. Therefore, this thesis studies the situation for a supplier/partner to an OEM that has changed their business model to a PSS providing one. As the first step in a development of a new business model aims this thesis to provide guidelines for how to set up value propositions suitable for a supplier/partner in this new environment. When technologically complex products, such as aircraft engines, are provided through PSS offerings it is hard to translate customer needs into quality parameters, which makes it hard to sustain the value to customer over time. Therefore, how to keep the value offering sustainable over time is also investigated in this thesis. The aim of this study was to investigate how a sustainable value proposition can be designed for a product and technology supplier/partner to an OEM that offers PSS solutions. The research has been performed through studying relevant literature and collecting empirical data from a case company through semi-structured interviews and a workshop. The case company in this research is Volvo Aero Corporation (VAC). The empirical findings show that VAC wants to offer product-service bundled solution, which fit the whole spectra of PSS value propositions, to their partners/customers. To be able to deliver these different types of product-service bundled solutions different value propositions that suit the different kinds of PSS offerings are needed. Requirements that must be fulfilled to be able to offer and deliver the different types of value propositions exist in terms of securing sufficient information access, aligning the incentives of all actors involved and achieving an internal consensus of what is delivered