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A Five-R analysis for sustainable fashion supply chain management in Hong Kong: a case analysis
Holly Pui-Yan Ho and Tsan-Ming Choi
Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hong Kong, Peoples Republic of China
Abstract
Purpose The purpose of this paper is to explain why fashion companies would go green and to evaluate business models and sustainable supply chains. By applying the Five-R framework, the authors further evaluate the initiation, implementation and institutionalization journey of a local fashion company and generate important insights and findings. Design/methodology/approach It is an exploratory qualitative study. The Five-R conceptual framework is reviewed, proposed, and applied for a real case analysis. Findings From the studies, data and literature gathered and analyzed hitherto, it is evident that fashion companies can seize competitive advantage through strategic management of environmental challenges. In their greening initiatives, fashion companies should strongly consider the product development process and extend stewardship across the multiple life-cycles of products. The Five-R framework, together with its future extensions, can offer an opportunity to clearly display what has been achieved by the company at present and also succinctly demonstrate what area the company is lacking in or where there is room for further beneficial development. Research limitations/implications This research focuses on examining the scenario of one real company. The findings need not be generalized and applicable to all companies: this is a major research limitation of this study. Practical implications The research findings can help explain and conceptualize fashion companies journal of going-green. Some specific recommendations are given and managerial insights are generated. Originality/value This paper undertakes a qualitative real case analysis to study green supply chain management (SCM) challenges by applying the Five-R framework. The authors believe that this study belongs to the first group of research works which specifically examine this area in the domain of fashion marketing and management. Keywords Hong Kong, Fashion industry, Textile industry, Supply chain management, Five-R analysis, Green supply chain, Sustainable, Case analysis Paper type Research paper

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1. Introduction Green supply chain management (GSCM) can be defined as traditional supply chain management (SCM) practices which integrate environmental criteria, or concerns, into organizational purchasing decision and long-term relationships with suppliers (Yang et al., 2010). Many companies endeavor moving toward sustainability in the supply chain, such as reducing procured resources and waste generation and discouraging one-time use and disposal (Vachon and Klassen, 2008), in order to obtain competitive advantage or reap economical benefits, for example. The World Commission on Environment and Development (WCED, now known as the Brundtland Commission)
This paper is partially supported by funding from the Hong Kong Polytechnic University, under grant no. G-YJ23.

Journal of Fashion Marketing and Management Vol. 16 No. 2, 2012 pp. 161-175 r Emerald Group Publishing Limited 1361-2026 DOI 10.1108/13612021211222815

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definition from 1987 assumes that for development to be sustainable, the needs of the present must be met without compromising the ability of future generations to meet their own needs (Shedroff, 2009). There are a multitude of other direct and indirect benefits and challenges in creating green and sustainable supply chains (Choi and Chiu, 2012), many of which will be further explored in the subsequent discourse in a fashion and textiles industry context. There are plentiful strategies, techniques, standards and regulations from which companies can derive global fashion supply chain management savvy. For instance, to achieve sustainability, some companies may employ reverse logistics (Abraham, 2011), facilitating an inverse product flow which caters to managing a products end-of-life processes, such as its subsequent disposal or re-integration back into the system from which it came. Moreover, there is a tendency for green supply chains to become more cyclical in nature, by abandoning a more linear format in their efforts to keep waste within the industrial system. This transition from a one-way, integrated supply chain to an extended, closed loop supply chain is an ideal which many companies seek to achieve in the long term. However, re-routing a supply chain is a daunting and monumental task. In order to successfully design and manage a green fashion supply chain, there are myriad tradeoffs and factors to take into consideration. The ever-lengthening supply chains of todays global economy present growing risks for retailers and manufacturers, who often rely on dozens or even hundreds of suppliers to produce a finished product. Furthermore, the trend toward more complex and faster apparel supply chains are doing little good for the ecological footprint of the industry: fashion and textiles with the exception of the luxury market is considered a low-value manufacturing industry. The billion-dollar question is: can it become a low-impact industry? Businesses today are defined by their performance throughout the supply chain: SCM consists of internal practices, those that are contained within a firm, and external practices, those that cross organizational boundaries, integrating a firm with its customers and suppliers. Therefore, firms should ideally work upstream with their suppliers and manufacturers in addition to downstream with their customers to ensure an all-encompassing green alignment. The abovementioned methods of GSCM and others and their respective pros and cons are analyzed in this paper in order to complement the GSCM frameworks and research findings. In this paper, we will first review and explore the reasons why fashion companies would go green and evaluate existing business models and sustainable supply chains. Following the background analysis, a Five-R framework is reviewed and proposed. As we will discuss in more details in Section 3, the Five-R framework refers to the conceptual model which contains five critical processes, namely recycle, reuse, reduce, re-design and re-imagine (Etsy and Winston, 2009). This Five-R framework will be used to evaluate the initiation, implementation and institutionalization journey of a Hong Kong-based fashion company[1]. The discoveries within the Five-R model will enable a measurement of the strengths and weaknesses of the local case study as well as offer managerial insight and significance. Before we conclude, we will propose whats next by investigating what would go beyond the Five-R. We believe that this paper provides good reference value to both the academicians and practitioners for implementation and development of sustainability measures. This not only applies to Hong Kong but may also apply to other markets where sustainability is also a critical issue.

2. Literature review 2.1 Keen for green: why do companies go green and sustainable? Firms are increasingly becoming responsible for environmental and social problems caused by their suppliers. The best companies view sustainability not only as a chance to contribute to social goals, but also as a powerful source of competitive advantage and a matter of corporate survival (Yang et al., 2010). It is widely argued that the majority of firms have adopted sustainable practices to strengthen brand names or differentiate their products. With the rise in demand for supply chain transparency and in the face of exponential competition, a companys decision to go green can stem from many reasons and even years of data and research but for analysis purposes these can be succinctly categorized into four distinct groups: social well-being, environmental stewardship, economic prosperity and governance. Moreover, there is the notion of the triple bottom line, which takes into account the economical, social and environmental. Since the establishment of the WCED sustainability definition, both academicians and practitioners have argued that for development to remain sustainable, it must simultaneously satisfy environmental, social and economic standards. Similarly, Shedroff (2009) substantiates this by stressing that sustainability needs to address human capital people, cultures, needs and desires; natural capital the environment that sustains us; and financial capital the monetary mechanisms that makes most forms of design thrive. Further define sustainable supply chain management (SSCM) as the integration and co-ordination of economic, environmental and social practices throughout the supply chain to improve firms economic, environmental and social performance along the supply chain. Social well-being. Social well-being encompasses improving labor standards and conditions, enhancing communities and creating and delivering socially responsible products and services (Mahler, 2007). Environmental issues have unequivocally climbed up the public agenda; the mass media has disseminated this in vastly numerous contexts. As a result, many consumers, companies and stakeholders alike are more aware of, and request for, verifiable and legitimate data of green progress from companies. At the other end, supply chain managers have to extend their vision beyond the shop floor and to the consumers, such as utilizing point-of-sales literature to educate consumers and promote greener consumption. A survey from Accenture (2007) produced encouraging results: research found that 64 percent of respondents are willing to pay a higher price for products and services that produce lower greenhouse gas emissions, based on more than 7,500 consumers surveyed in 17 countries in North America, Europe and Asia. However, it is worthwhile to consider the possibility that the respondents answered in favor but in reality did not put their answers into practice. Companies must also emphasize and continuously audit and fine-tune their corporate social responsibility (CSR) goals, in order to competently satisfy communities, customers and stakeholders within and beyond the society in which they operate. To move from a superficial gloss to a profound commitment, companies need to incorporate socially responsible values into their supply chain (Mahler, 2007). Rising transparency in supply chains also leads to rising scrutiny, thus collaboration across the supply chain is paramount and organizations are inevitably realizing and reaping the benefits of working together: 52 percent have made significant improvements in greening operations in the past year, according to 100 organizations surveyed by PMP Research (2008). Moreover, 61 percent have done so with their key suppliers and a further 26 percent have established this extended relationship with all

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their partners, thus strengthening relationships as far across the supply chain as possible. In addition, while cooperation means working together, collaboration implies working together toward a common goal (Shedroff, 2009). Environmental stewardship. Direct pressures from the natural world, such as water shortage and climate changes demand that GSCM should become an environmental and ethical imperative. Environmental stewardship by companies can include conserving energy and resources, consuming more renewable and less-polluting energy, increasing recycling, minimizing packaging and reducing the firms carbon footprint (Mahler, 2007). The ultimate objective of extending the traditional supply chain is to consider the total, immediate and eventual environmental, effects of all products and processes (Ip, 2001). Hong Kong is a key hub for sourcing and product development, thus companies should leverage this opportunity to play an integral role in propelling sustainability forward and across the supply chain, subsequently catering to local and global customer demands which can reshape markets, create new business risks and generate opportunities for those prepared to respond. Companies can achieve product stewardship by renewed target marketing creating eco-market space and product differentiation by experimentation and innovation, such as looking into the sustainability of resources and new raw materials. Joining other companies and forming partnerships organizations can also strengthen the exposure and highlight the importance of environmental stewardship. For instance, the Sustainable Fashion Business Consortium (SFBC) was formed recently in 2008 by a group of Hong Kong-based companies in the textiles and apparel sector, to promote and increase the use of sustainable practices across the supply chain (SFBC, 2008). This includes moving Hong Kongs environmental certification, labeling and carbon emissions businesses into the mainstream (Sung, 2008). Pat-Nie Woo, the chairman, underscored the groups mission to be a role model on sustainability, to make the dream of low-impact clothing a reality (China CSR, 2008). Additionally, Hong Kong fashion and textile sector appear to be taking the mounting challenge of sustainability seriously (De Coster, 2008). For instance, Hong Kong has nearly 500 companies Oeko-Tex[2] certified, ranking the city as fifth among 84 countries, with Chinese mainland placed second. Additionally, fashion and textile fairs are also accentuating the opportunities and benefits underlining going green. In 2008, Interstoff Asia in Hong Kong re-branded itself as Interstoff Asia Essential, a fair offering eco-fabrics and multi-functional fabrics (De Coster, 2008). Katy Lam, the shows organizer elaborated, The evolution of Interstoff Asia Essential as a premium sourcing ground for textile buyers with a green conscience has happened fairly quickly, largely due to Hong Kongs pivotal sourcing and design role for the garment manufacturing industry in Asia thus solidifying that green sustainability is undoubtedly gaining momentum in Hong Kongs fashion and textiles industry and reinforcing its reputation as a key hub. Economic prosperity. Economic prosperity comprises of promoting profits, creating jobs, attracting customers, reducing costs, anticipating and managing long-term risks and fostering long-term competitiveness (Mahler, 2007). Conversely, it is important to note that the greening of products often drives up costs, as additional requirements have to be met at each stage of the supply chain (Seuring, 2001). Seuring (2001) elaborates on the differentiation between three cost levels, namely direct costs, activitybased costs and transaction costs. Organizations such as SFBC have also joined with other groups (NGOs) including Reducing the Impact of Textiles on the Environment (RITE) group and WWF

Hong Kong (Worldwide Fund for Nature), to further boost environmental awareness. WWF Hong Kongs low-carbon manufacturing program aims to build a common standard for carbon footprint calculation for the fashion and textiles industry. From carbon accounting to benchmarking, it aims to reach the stage of carbon trading under a carbon footprint project. More importantly, carbon credits can be traded in the world market and become a new source of revenue for the industry. Ip (2001) suggests several extended supply chain performance measures, such as product recovery, product characteristics, waste emissions, exposure hazards and economic emissions. The notion of extended producer responsibility is also predominant in the industry, research by PMP Research (2008) illustrated that over 67 percent of companies are having environmental demands placed on them by partners and shareholders. The after-life of a product has never been more significant, in parallel with reducing and recycling post-industrial waste back into the supply chain. SimchiLevi (2008) corroborates, referring to an Eye for Transport survey published in November 2007 which demonstrated green issues have already started to play an important role in companies overall business strategy. The survey found 67 percent of executives questioned in Europe believed that green issues are important to their companys strategy. And while Europe is generally leading the way in regards to championing the green approach to business, a significant proportion of executives in the USA, 59 percent, and Asia, 57 percent, viewed green as an integral part of their long-term strategy (Simchi-Levi, 2008). Governance. Governments all over the world are raising environmental standards, thus placing pressure on many companies to adapt to increasingly stringent regulations in order to answer to both public and governmental agenda. At the same time, a more complex regulatory imperative has evolved as global regulations become more complicated and dynamic (Powell and Prostko-Bell, 2010). This new imperative creates an important shift in focus from violation prevention to embedded compliance; conformance has evolved to become less about reactionary tactics and more a part of a strategic business plan that includes supply chain actions with measurable success factors, rather than vague attempts to preserve and promote brand image. Recent research from the Hong Kong Trade Development Council (HKTDC) revealed about 40 percent of Hong Kongs manufacturers operating in the Pearl River Delta (PRD) have increased their investment in technology in order to comply with the Guangdong governments increasingly stringent environmental requirements (HKTDC, 2008b). With the PRD governments determination to tackle the pollution problem, the demand for environmental technology, products and services is increasing exponentially, bringing business opportunities to Hong Kongs eco-industry, according to findings from the same survey. Existing production facilities that fail to meet the requirements and standards are forced to close or move. Therefore factories that continue to stay in the PRD must invest in more environmentally friendly manufacturing systems and effectively tap the green manufacturing opportunities in the PRD. Moreover, new projects must pass an environmental impact assessment and have pollution-control facilities installed when starting operation. By 2020, the Guangdong government plans to reduce sulfur dioxide emissions by 21 percent and chemical oxygen discharge by 24 percent, and have pledged to invest an extra RMB173.9 billion into greening manufacturing practices in the region. While each phase of the supply chain boasts its own unique requirements, there is a common thread throughout: access to comprehensive and accurate regulatory data are

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required during each and every phase, as this data are one of the most essential requirements for green and sustainability initiatives (Powell and Prostko-Bell, 2010). 2.2 The green supply chain framework GSCM is concerned with managing relationships and operations with suppliers and customers to deliver customer value at a low impact. Developing an effective strategy can reward companies with reputation enhancement, license to operate, avoiding litigation, recruitment and retention of employees and developing process, product and strategic innovations (Ansett, 2007). Components of a green supply chain framework seek to build upon each other to initiate, implement and institutionalize sustainable processes. As a popular scheme on environmental management as well as an example of institutionalization of GSCM, ISO 14000 helps companies to establish their environmental-related operations and work flows (Delmas and Toffel, 2004; Lai et al., 2005; Lo et al., 2012). Under ISO 14000, companies can follow the respective work processes and standard operating procedures to better manage their own environmental-related programs. Following ISO 14000 standard, companies can identify processes, develop a performance measurement system, measure the supply chain system, prioritize the processes, develop alternatives to the processes, select approaches and establish auditing and improvement procedures. A proper compliance to the standards could lead to the ISO 14000 certification which is an objective evidence of the companys achievement in environmental management and helps with the institutionalization of GSCM practices (Delmas and Montes-Sancho, 2011). Coercion. Coercive pressures are exerted on a dependent firm by larger, more dominant organizations and by cultural expectations in the society within which the dependent firm operates (Lai et al., 2005). The pressures can be either formal or informal and can be experienced as force, persuasion or invitations to join in collusion (Dimaggio and Powell, 1983). In some circumstances, organizational change is in direct response to government mandate, such as manufacturers adopting new pollution control technologies to conform to environmental regulations. Mimesis. Mimesis is a type of institutional isomorphism whereby the force of uncertainty encourages the imitation of best practices. Firms model themselves on other similar or associated organizations in response to the uncertain business environment. This is particularly true for firms which have ambiguous goals and operates in a volatile environment (Lai et al., 2005), therefore this has particular resonance for the fashion and textiles industry. Norms. Normative processes are the third type of institutional isomorphism, stemming from professionalization, which concerns the establishment of legitimization for the autonomy of a supply chain (Lai et al., 2005). In this context, the wide deployment of green practices becomes a norm for suppliers in the fashion and textiles industry. 2.3 Approaches to sustainability There are many models and frameworks for organizations to adapt in their quest for sustainability. In addition to the Five-R framework that we will discuss in the next section, Shedroff (2009) explored a framework which was first proposed by the three luminaries of sustainability: Paul Hawking, Amory Lovins and Hunter Lovins. Notice that Shedroff (2009) frameworks is also known as eco-efficiency, and is relatively simplistic and thus easily understood; enabling a quick foundation for understanding the value of sustainability and the new perspectives around sustainable design and

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development. The framework depicts four types of capital, namely natural, human, manufactured and financial capital. Unsurprisingly, most companies to date have focussed on the costs quadrant in the Green-to-Gold Plays Framework in their GSCM endeavors, which includes ecoefficiency, eco-expense reduction and value-chain eco-efficiency. Cost reduction is extremely low risk, easy to sell internally (Etsy and Winston, 2009) and return on investment (ROI) is quickly observed. It can also yield competitive advantage, but Etsy and Winston (2009) warns that by focussing solely on the cost side, many companies are missing chances to generate broader eco-advantage. Eco-efficiency alone is not enough to combat neither competition nor the rising rate of consumption. Between 2000 and 2005, world production of textile fibers increased from 53,327 to 65,531 million kg (De Coster, 2008), counterbalancing the steadily growing eco-efficiency in textile production facilities. This growth of global production cannot be simply offset by the reducing waste and pollution in the supply chain and costs in the value chain. Additionally, simply attempting to mitigate eco-risks is not enough to garner eco-advantage. The rise of transparency leads to ubiquitous chances of risk to a companys image, in particular those with a corporate reputation and a CSR mission statement. If distant suppliers are under fire for dumping waste in a river or under allegations of child labor, the brand (the one with the international presence) is the one to come under fire. As such, damage control is simply not enough; companies must take a pre-emptive stance and power ahead of regulations before they become a regulatory reality. In terms of tangible revenues generated from GSCM, Etsy and Winston (2009) infer that re-designing processes and products to cut waste and pollution and marketing them accordingly is a big part of eco-advantage. Moreover, potential gain lies outside the factory/company gates, thus eco-design can strengthen customer interest and loyalty, subsequently also appealing to new customers. Environmental vision can create new market space and value innovation (Etsy and Winston, 2009), as companies can discover fresh expressions for their capabilities and success in the long term. Lastly, an intangible, yet long term upside is brand equity; companies brand value can be worth more than their hard assets thus any threat to that has to be taken seriously (Etsy and Winston, 2009). A survey by Ernst & Young (Blanchard, 2008) showed that 71 percent of the companies questioned believe reputation and brand is the area where green efforts will have the greatest impact. Thus the range of green initiatives extends across a broad spectrum of choice, opportunity and challenges, and companies should carefully consider the nature of their long-term commitments and goals in order to achieve ideal and sustainable; long and short term; tangible and intangible benefits. 3. Five-R analysis framework 3.1 From Three-R to Five-R Traditionally, the pollution prevention hierarchy is formed by the three-Rs: reduce, reuse and (3) recycle. The primary difference between these processes is the extent to which the characteristics of the product are changed (Ho et al., 2009). While the physical characteristics of a material are maintained in reuse, recycling may change the characteristics of the material completely including chemical and physical traits. Sarkis (2003) points out further that an organization has to decide which methods to employ depending on the product characteristics. This Three-R model has been extended to a Five-R model, as introduced by Etsy and Winston (2009). The additional segments of re-design and re-imagine serve to

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complete the Five-R pyramid of five-level analysis framework for the selected Hong Kong company. This Five-R model will be systematically applied in the analysis, comparison and evaluation of the company in the fashion and textiles industry and their GSCM ventures. It is hoped that this proposed framework will elucidate and categorize the companys greening initiatives accordingly, but it is also worth noting that by no means are the Five-Rs mutually exclusive; a recycling method can be a derivative of an exercise in re-designing, for example. Moreover, the Five-R can be extended into a Six- or even Seven-R model as a result of the findings and data gathered. 3.2 Five-R Recycle. Recycling is the process by which materials are collected, processed into reusable forms and subsequently used as raw materials for new products. Some companies have developed technologies to regenerate the denim fiber waste back into original fiber length and form (HKTDC, 2009b). Two types of waste have been identified, which are post-industrial waste and post-consumer waste. Post-industrial waste recycling is easier than recycling post-consumer waste, due to the fact that at the post-industrial level, the content and composition of the material is known. Shedroff (2009) emphasizes that recycling is an important tenet of sustainability, but in order for it to be effective, products need to be easily disassembled into component parts and separated by material. As a result, post-consumer waste complicates the matter, particularly in the separation process, as the fabric has undergone many changes since the initial industrial processes, therefore rendering the recycling more resource and capital intensive, despite the higher value in doing so. Shedroff (2009) underscores the particular challenge in recycling modern clothing which composes of natural and artificial fiber blends, such as cotton and rayon, neither of which can be recycled in the compost or recycling bins. Reuse. Reuse refers to repeating the usage of items in their original format. Instead of discarding the items, they can be reused and thus have their usage life extended. This can include items such as dress pins, garment packaging or sewing needles. Shedroff (2009) suggests that in addition to the strategy of extending the use of garments to make them last longer, another is for companies to design their operation and components to be easily exchanged so that the majority of the components and environmental impact stay in use. In a fashion and textiles context, this notion of modularity can perhaps be achieved through garment packaging and fastening components such as zippers, buttons, eyelets, hooks and eyes. Reduce. Reduce means source reduction and waste prevention. In a fashion and textiles industry context, this could equate to buyers reflecting more carefully on their fabric procurement; perhaps sourcing locally would be less environmentally taxing and if purchasing globally, they should minimize the safety stock ordered to prevent fabric wastage. In the garment manufacturing process, sophisticated lay planning software can help map out the ideal layout for pattern pieces which would result in less fabric wastage following the fabric cutting process. Shedroff (2009) also defines the idea of eco-effectiveness as an idea not only to reduce waste but also to eliminate the concept of waste. Re-design. Prior to the process of reducing, companies should contemplate and explore ways to re-design what they do and how they do it (Etsy and Winston, 2009). There are different perspectives under this re-design process. The first perspective focusses on product design which involves important topics such as the use of

materials. The second perspective refers to the process re-design. The popular business process re-engineering (BPR) scheme, in which companies try to streamline their existing business processes to enhance efficiency, is an example of process re-design. In the context of GSCM, BPR usually associates with the change/simplification of business processes to reduce logistics-related wastes (such as adopting local supplies to reduce carbon footprint) as well as enhancing workflows with reduction of wastes (such as paper and energy). Re-imagine. Even before the process of re-designing, companies can also consider the re-imagination of their products or processes, since innovation is critical to twenty-first century competitive advantage. These two Rs aim to drive and direct environmentally creative thinking into companies, encouraging them to seek new opportunities to add value to what they do and realize that re-designing and re-imaging precludes the former Three-Rs in generating greater profit and long-lasting company value and vision. A popular concept is Design for Environment (DfE), whereby designers create items by taking the environment into account. It is less expensive to design a low-impact product than to manage or retrofit a high-impact one (Powell and Prostko-Bell, 2010). 4. Local case study: Fashion Company D 4.1 Company overview Fashion Company D was established in 1977. Their expertise mainly lies in ladies woven apparel; specializing in high-quality soft goods in particular such as sportswear, casual wear and suit pieces for well-known global brands. The company is also renowned for their embellishment and embroidery techniques, along with their strong sample room facilities including fully computerized pattern making, grading and marker preparation system. The company runs two main production plants in Shenzhen, the main plant in Futian and a branch factory at Bo An, to provide quick response and tailor-made services to their customers. There is also a joint venture plant in Saigon, Vietnam. The total annual capacity is over 3,500,000 pieces of fashion apparel and distribution is spread as follows: 78 percent USA, 22 percent EU and others. Some examples of some of the companys primary international clients include Ann Taylor, DKNY, Armani Exchange, Juicy Couture and Diane Von Furstenberg. 4.2 Fashion Company D: Five-R framework analysis Utilizing the Five-R framework developed and referenced above, Fashion Company D is analyzed accordingly in the following section. For clarity and organization, the company has been analyzed in a tabular style (see Table I). 5. Discussions: beyond Five-R 5.1 Discussions and insights From the studies, data and literature gathered and analyzed hitherto, it is evident that companies can seize competitive advantage through strategic management of environmental challenges (Etsy and Winston, 2009). Scores of local and international companies have realized the significance of GSCM to long-term success and are positioning themselves to develop green methods in their technologies and products, sometimes even preceding governmental regulations. Reasons for initiating GSCM range far and wide and differ for each individual organization, but identifying three institutional isomorphic processes complements the four GSCM strategies and assisted in further evaluating the local case study.

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Table I. Analysis of Fashion Company D: Five-R framework analysis

Recycle Fashion Company Ds focus has been on water recycling and steam power generation The company recycles steam to generate renewable energy for heating water and powering the cooling system (using heat exchange technology) Result: this has saved 50 percent of air-conditioning electricity in 2009 There are two sets of water supply systems in the production and living area. One is for fresh water supply and the other set is for recycled water supply, which is used for production, watering plants and flushing lavatories The chiller is also powered by recycled steam Reuse Sewing thread cones are returned to suppliers for reuse Treated waste water is reused in the system for washing, planting and other daily uses Cotton fabric waste is donated to spinners for recycling and reuse Reduce 80 percent of sewing machines at Fashion Company D have installed an automatic thread cutting device for reducing thread wastage Result: sewing machines have also been installed with a power-saving device, which has saved 20 percent of power used by the motor consumption by reducing the electrical current from 1.62 to 0.56 amperes Fashion Company D have invested in a water curtain-type air cooling system which provides better air quality and has replaced conventional electric air conditioning. This has resulted in a reduced heat discharge, thus reducing pollution to the environment Result: by installing water curtain-type air cooling system it has replaced conventional electricity powered air conditioning, saving 80 percent power in 2009 Fashion Company D have also saved in lighting energy by using T5 energy efficient fluorescent bulbs, the transfer of which was fully completed by March 2009 Fashion Company D has proposed to reduce business travelling, by instead encouraging the usage of video conferencing, live communicator and the MSC system to allow for real-time date exchange online. They are also aiming to reduce the air freight paid by 65 percent within the next five years Fashion Company D has also proposed to implement solar energy for processes such as heating water Materials usage: Fashion Company D wants to reduce wastes with a target of having 99.95 percent of materials being fully utilized Fashion Company D has also reduced water tap pressure, reduced the flow of water discharge and encourages employees to reduce the waste of fresh water Re-design As a result of their fiber diversification in both natural and man-made fibers, the composition of silk products in their merchandise mix dropped from 65 percent in 2005 to 35 percent in 2009 Fashion Company D also aims within their five-year plan, to launch organic, fair-trade products and environmentally friendly dyed fabrics. However, this is somewhat dependent on demand from their customers as currently there is insufficient demand to drive this green initiative In their business process re-engineering they implemented an ERP system, which facilitates a paperless office, in addition to allowing for better collaboration across departments and thus reducing redundancies and streamlining processes to achieve operational excellence They also have plans to partner with environmentally conscious suppliers, such as their office paper source, in addition to pioneering packaging sustainability and packaging waste reduction Re-imagine Re-designed and restructured their supply chain from a traditional batch flow to a lean manufacturing process involving a one piece flow. The transition from batch flow to one piece flow totaled approximately two years; half a year for research and analysis and one-and-a-half years to implement fully Result: this one-piece flow process began in January 2007, which led to an increase in efficiency (cost) by 30 percent by 2008. Other benefits included a shorter production lead time, allowed for just-in-time production, increased accuracy of garment production and most importantly, reduced wastage Company D are also rethinking about the society in which they operate in, such as looking to develop partnerships with customers, suppliers and local communities in addition to working with the government The company has also expressed their desire for employee centricity and vision in the organization, to ensure a pleasant and productive working environment. They expect to increase their employees drive and encouragement to others by launching an environmental awareness program, such as influencing them to engage in social service activities such as tree planting and beach cleaning

Companies can employ a suitable environmentally beneficial strategy to become more competitive, taking into account the temporal and monetary investments and the life stage the company is in. Actualizing strategies into practice requires the view of sustainability as a supply-chain-wide unified vision. Moreover, Friedman (2008) stipulates that in order to be successful, it is imperative that suppliers throughout the supply chain view sustainability as a core business strategy. Therefore companies must take a top-down approach and have their leadership committed to sustainability targets. Most significantly, greening the supply chain requires working with upstream suppliers and downstream customers as well as across the enterprise itself. Friedman (2008) also infers that companies who do not begin to implement sustainability initiatives on their own, will soon find it being required of them by shareholders, retailers, federal and state agencies and most of all the consumers; it is only a matter of time. In their greening initiatives, companies should strongly consider the product development process and extend stewardship across the multiple life cycles of products. For instance, striving to design and develop products which have the minimum environmental impact during their manufacture, use and subsequent disposal and treatment. Purchasing could also become an important agent for change regarding environmental initiatives in the supply chain; responsible procurement in the form of local or regional in-sourcing can assist. If a company can afford to, staying one step ahead is beneficial, as taking a pre-emptive market and regulatory stance ensures first entry advantage and perhaps quicker ROI; companies who are followers will have a more difficult time drawing alongside others as they do not have time to initiate, only imitate. In the operational and manufacturing processes, there are countless techniques in which companies can employ to achieve sustainability, such as minimizing energy usage and waste where practicable and reuse or recycle materials where feasible. Companies need to set environmental targets which are both achievable and profitable. Progress and performance can be monitored by internal and external auditing; regular reports on the companys own GSCM can help identify benchmarks and set future targets. The Five-R model offers an opportunity to clearly display what has been achieved by the company at present and also succinctly demonstrates what area the company is lacking in or where there is room for further beneficial development. Environmental policies will need to be reviewed, fine-tuned and perhaps even changed on a regular basis in order to yield competitive advantage. 5.2 Beyond Five-R and future research As companies continue to compete and move through the twenty-first century, it is imperative that they ideally strive toward a closed-loop strategy in their GSCM, in order to maximize their potential in all respects. It is apparent the fashion industry is undergoing a paradigm shift and companies who anticipate the shift and act prior to it will inevitably benefit. However, further investigation is required into the differences in challenges and benefits that small and large companies face in their efforts of GSCM and this requires a bigger sample and additional data and analysis. The Five-R model provides a basic framework for a straightforward and succinct comparison between organizations and can be further developed in two proposed methods. First, a subset scoring system has been inspired and proposed as a result of the Five-R analysis. This allows a quantitative evaluation of the company as well as a method to compare and contrast it with other companies for future research and reference, therefore generating managerial insights and significance. For instance, any tangible results generated by

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the Five-R analysis can garner the company extra points, the value of which can be dependent on the value of the R itself as well. Additionally, it is worth considering extending the Five-R framework into a Six-R and beyond model; including words such as re-wear, re-style, replace and rewards. Re-wearing and re-styling garments would reduce fashion obsolescence and reduce garment wastage. Replace would be the counterpoint to re-wearing and re-styling, an analysis of what part of the fashion supply chain prompts or exacerbates warp speed consumption. Rewards could look into incentives and schemes developed to encourage more green practices by societies, communities and target markets. With the extended R model and a subset scoring system, it would be sensible to analyze several companies of different sizes and global presence in order to compare and contrast the difference in priorities, approaches, implementations and results between organizations, thus offering more valuable insight into the complex and timely world of green fashion and textile supply chains. 6. Conclusion The fashion and textiles industry competition is undeniably cutthroat. With the rising complexity and increasing speed demanded from global and local fashion and textile supply chains, the race to the bottom in a traditionally low-value manufacturing industry is now losing momentum to one of the most opportune issues: GSCM and SSCM in order to create an ideal low-impact industry and reap the multi-disciplinary benefits. There are myriad approaches, frameworks, standards and regulations for companies to adopt and develop in their quest for competitive advantage and sustainability through greening their supply chains. A selection of these aforementioned strategies is evaluated to complement the discussion of the relatively recent reality and imperative of green and sustainable fashion supply chain practices. In this paper, we review and propose the Five-R framework to examine GSCM challenges. By applying it to explore a fashion company which has its headquarters located in Hong Kong (China), we generate important insights related to SSCM. We also discuss future research direction by going beyond these Five Rs.
Notes 1. Much of the analysis of this paper focusses on the Hong Kong scenario because: Hong Kong is a renowned fashion center in Asia and it is also one of the largest suppliers of apparel products in the world; companies such as Li & Fung, and Fourtain Set are all Hong Kong based and they are known as pioneers in implementing various SCM measures, including sustainability measures; being a trading hub, Hong Kong is close to the world factory China in which environmental sustainability is now a critical issue (Lam and Postle, 2006; Yeung and Choi, 2011). 2. Oeko-Tex Standard 100 is a form of certification dating from 1992 that limits the use of chemicals such as pesticides and heavy metals in clothing and is recognized as one of the stricter certifications in the industry in addition to being the worlds best-known quality mark for textiles tested for harmful substances.

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Manufacturing & Logistics IT (2008), Green supply chain y shouldnt everybody have one?, Manufacturing & Logistics IT, November, available at: www.logisticsit.com/absolutenm/ templates/article-supplychain.aspx?articleid 4283&zoneid 5 (accessed November 1, 2009). Simpson, D. and Samson, D. (2008), Developing strategies for green supply chain management, Decision Line: Products/Operations Management, July, available at: www.decision sciences.org/decisionline/Vol39/39_4/dsi-dl39_4pom.pdf (accessed November 1, 2009). Sundarakani, B., de Souza, R., Goh, M., Wagner, S.M. and Manikandan, S. (2010), Modeling carbon footprints across the supply chain, International Journal of Production Economics, Vol. 128 No. 1, pp. 43-50. Corresponding author Tsan-Ming Choi can be contacted at: tcjason@inet.polyu.edu.hk

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