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This short case study presents a dual challenge as a new Senior Vice President of Supply Chain at Trendy Fashion Company:

improving operational performance (matching supply and demand, reducing costs) and increasing sustainability.

business context:

Regional Diversification

Adopt eco-design principles

upcycled or recycled product lines to appeal to eco-conscious consumers

Supply Chain Visibility and Transparency:

End-to-End Digital Visibility

Supplier Audits and Traceability

Sustainability and Regulatory Compliance

Emission Reduction Targets

Formal Sustainability Reporting

solutions

1.Formally separate the supply chain for the "Basic Collection" and the "Fashion Collection"

Lower waste for Basic items due to predictable demand and reduced need for rush shipments.

2.Engage with design teams and contract manufacturers to select more sustainable materials and create products that last longer or are easier to recycle.

3. Immediately start preparing for the company's first report because the company is also involved in the recycling of clothes from the customers which also a practise helps for waste reduction

4.Transparent reporting drives internal accountability for environmental and social goals .

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Team 7

Rohan Jain

Demand Intelligence:
Segment SKUs (Basic, Core, Trend) and use real-time ML-based demand sensing for short-lifecycle fashion.

Assortment Optimization:
Apply lifecycle rules, prune underperforming SKUs, and control SKU proliferation.

Agile Sourcing:
Partner with near-shore suppliers for fast response; introduce VMI for Basics.

Supply Chain Visibility:
Build a digital twin integrating , ERP, and social data; enable RFID tracking and event-driven replenishment.

Omnichannel Fulfillment:
Use BOPIS and ship-from-store; strengthen returns, refurbish, and recycling processes.

Regulatory & Sustainability:
Enforce REACH/labor compliance, track ESG metrics, and report Scope 1–3 emissions.

Governance & Change:
Form a cross-functional “Fast Fashion Ops” team; focus on agile decision-making and planner training.

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As the newly appointed Senior Vice President of Supply Chain at Trendy, my strategy focuses on optimizing both performance efficiency and sustainability across the value chain. One of the key initiatives to achieve these goals is the introduction of a Clothing Take-Back and Circular Recycling Program.

Currently, customers often discard old Trendy garments through public recycling bins or general waste, leaving the company with no control over post-consumer waste. This not only contributes to environmental impact but also represents a lost opportunity to manage demand and material resources efficiently.

1. Enhancing Supply Chain Performance

By implementing a take-back system, Trendy can better forecast and manage the reverse flow of materials. Collected garments can be sorted, refurbished, or recycled into new raw materials. This helps to:

Reduce the demand–supply mismatch by reintroducing recovered materials into production.

Lower material procurement costs through recycling.

Improve inventory planning by leveraging second-hand or outlet channels for refurbished products.

This closed-loop model creates a more predictable and balanced supply chain, where inputs are optimized and waste becomes a resource.

2. Strengthening Supply Chain Sustainability

Placing dedicated drop-off boxes in Trendy stores makes it convenient for customers to return used garments directly to the brand. The returned clothes would be categorized into:

Resellable items (refurbished and sold via Trendy’s resale platform),

Recyclable textiles (processed into new fibers for future collections),

Upcyclable materials (repurposed creatively for limited-edition collections).

Trendy can collaborate with certified recycling partners to ensure responsible material processing and compliance with sustainability standards.

To encourage participation, Trendy will integrate customer incentive programs such as loyalty points, store credits, or discounts per returned item. This drives repeat sales and enhances customer retention while fostering a shared environmental responsibility.

Strategic Impact

This initiative would significantly improve resource efficiency, reduce waste generation, and close the supply loop, directly aligning with Trendy’s sustainability vision. Simultaneously, it would strengthen customer trust, enhance brand image, and differentiate Trendy from competitors operating in a linear fashion model.

Ultimately, this approach creates a synergy between operational efficiency and environmental stewardship, positioning Trendy as a leader in sustainable and smart supply chain management.

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SUBMITTED BY VANSH BAGARIA

1) What are the most important themes and pressing action items to make Trendy’s supply chain sustainable?

Ans:- The main theme of this case study is to reduce long lead times by shifting production closer to Europe, cutting dependence on air freight, and improving demand–supply matching to avoid excess inventory. Trendy should introduce sustainable materials, create a recycling or take-back system, and enforce stronger environmental and social standards with suppliers. They should also focus on improving their supply chain in order to cater to their demand and supply needs.

2. How will each theme impact sustainability and company performance?

Ans:- Nearshoring and better forecasting reduce waste and emissions while improving responsiveness, lowering stockouts, and decreasing markdowns. Sustainable materials and recycling initiatives reduce environmental impact and enhance customer perception, strengthening brand loyalty. Supplier standards and low-carbon transport reduce emissions and risks while improving operational reliability and long-term cost efficiency.

3. What complementary analysis is needed to convince senior management?

Ans:- Management will need a financial evaluation comparing current sourcing with proposed changes, supported by data on carbon emissions and potential reductions. Scenario modeling of inventory improvements, lead-time reductions, and logistics changes will help quantify benefits. Capacity assessments, customer insights, and benchmarking competitor sustainability practices will provide additional evidence to support the proposed strategy.

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SUBMITTED BY RACHEL LAMSAL Sustainable Solution: Clothes Recycling & Take-Back Program (Circular Fashion)

(1.)Business Context

Trendy is facing pressure to be more sustainable because competitors are already changing their practices. Also, Trendy has a loyal customer base that visits stores often, so a recycling program where customers return old clothes can increase sales through reward points. This solution improves brand reputation and supports long-term success.

(2.)Supply Chain Improvements

Currently, Trendy is not active in collecting and recycling clothes.

By starting a take-back and recycling program:

Waste from unsold or old clothes will reduce

Some recycled material can be reused for new products

A reverse supply chain will be created (store → recycling → new clothes)

This makes the supply chain more circular, less costly, and better matched with sustainability goals.

(3.)Regulatory Pressure

Trendy has never published a sustainability report.

With increased environmental rules after the Paris Agreement, Trendy must show action in reducing fashion waste. A recycling program helps the company meet future European regulations on textile waste and carbon emissions, avoiding risks and keeping compliance strong.

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Right now, customers typically dispose of their old Trendy garments through public recycling bins or by simply discarding them, which means the brand has little to no control over what happens to these clothes once they leave the customer’s hands. This disconnect not only limits Trendy’s ability to ensure responsible waste management but also prevents the company from leveraging a key sustainability opportunity that could strengthen its brand identity.

To address this, Trendy can implement a clothing take-back program, a practical, visible, and impactful sustainability initiative. Placing dedicated drop-off boxes in all Trendy stores would make the process convenient for customers, allowing them to return any used or unwanted garments directly to the brand. This initiative would serve as a closed-loop system where Trendy takes responsibility for the end-of-life phase of its products.

Once collected, the clothes could be sorted into categories items that can be resold, reused, or recycled. Trendy could collaborate with trusted textile recycling organizations or resale platforms to manage this process efficiently. Clothes in good condition could be refurbished and sold through second-hand or outlet channels, while damaged textiles could be upcycled into new materials or fibers for future collections. This approach promotes a circular fashion economy, reducing the amount of clothing waste that ends up in landfills and conserving the resources needed for new production.

To make the program even more effective, Trendy should integrate a customer incentive system. Offering loyalty points, store credits, or small discounts for each returned item would not only motivate participation but also encourage repeat purchases, helping the brand retain existing customers. Such incentives transform the program from a purely environmental initiative into a value-driven exchange that benefits both the company and its customers.

From a strategic standpoint, this move would enhance Trendy’s brand reputation and customer trust. Consumers today are increasingly aware of fashion’s environmental footprint and prefer brands that demonstrate real commitment to ethical practices. By visibly leading in sustainability, Trendy would differentiate itself from competitors still operating under the linear “take-make-dispose” model.

In essence, a well-designed take-back program would position Trendy as a forward-thinking, responsible fashion brand. It would not only help reduce waste and promote resource efficiency but also deepen customer engagement, support long-term brand loyalty, and align Trendy with the growing global movement toward sustainable and circular fashion.