Sustainable Logistics and Supply Chain Management by Wong Chee Yew

Author:Wong, Chee Yew...
Language: eng
Format: epub
Published: 2014-01-29T19:29:57.354000+00:00

H&M is committed to conserving soilwater, soil, air and species. In terms of raw materials it aims to use only cotton from sustainable sources by 2020 by switching to certified organic cotton and other raw materials made from recycled materials including fabric. The use of organic cotton grown without chemical pesticides or fertilizers is good for the health of the farmers as well as the environment. H&M has been actively involved in the Better Cotton Initiative (BCI). H&M also continues to increase the use of recycled polyester, polyamide and wool that are certified independently by third-party certification following the Global Recycling Standard (GRS). In terms of water and chemicals, H&M needs to work with the factories to improve the way water is used and treated and to ensure chemical safely and eliminate discharges to water, soil and air.

The company does not own factories and therefore develops environmental requirements for suppliers according to the above commitments. Suppliers are audited by an external auditor according to the Textile Exchange Standards or Organic Content Standards (OCS) and transactional certificate (TC). The OCS verifies the presence and amount of a given raw material in a final product. It is a voluntary standard that tracks the flow of a raw material from the source to the final product and is certified by an accredited third party. The certification of the raw materials itself is verified independently by another production process certification.

For those who own factories that use a lot of water and chemicals, cleaner production becomes the main strategic objective. Esquel Group is a producer of premium cotton shirts. It has production facilities in China, Malaysia, Vietnam, Mauritius and Sri Lanka, and a network of branches servicing key markets worldwide. Esquel manufactures for the world’s best known and highly respected brands, including Ralph Lauren, Tommy Hilfiger, Nike, Brooks Brothers, Hugo Boss, Lacoste, Bestseller and Muji. Esquel chose to vertically integrate its supply chain operations to remain in control of its product quality in every step of the production process. Cotton is grown in its own facilities in Xinjiang province in north-western China. The company takes care of the remaining value chain activities including spinning, weaving, dyeing, manufacturing, packaging and retailing.

Esquel uses the pollution database developed by the Institute of Public and Environmental Affair’s in China to identify environmental problems of suppliers and its own factories. External auditors are sent to the factories whenever a problem is reported. Strict demands are made of suppliers to make corrections and explanations whenever an environmental problem or offence is discovered. In some cases suppliers do not have the financial capability to install water treatment facilities, and customer orders are not large enough to support the investment of such facilities. In such instances, the company helps suppliers to identify chemicals that are less polluting and use less water. As a result suppliers save energy and water, and some of them even receive ISO14000 certification and rewards from the Chinese government. The company also uses the Oeko-Tex Standard 100 to require

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