Is Bimodal Supply Chain The Future Of Fashion Retail?

Digital technologies are key enablers in setting up a bimodal supply chain. In addition to AI, ML, and generative AI, some of the other technologies that can help in this transformation are RFID, smart store technologies, digital twins, and robotics...

- Senthil Kumar Balraj

The fashion industry's impact on the environment is significant, and being sustainable is a key priority. There is a growing awareness of the environmental and social issues caused by fast fashion, and retailers are increasingly adopting initiatives and investing in becoming more sustainable. Technology will be a key enabler, supporting retailers in this journey. It can help across the entire fashion value chain, from design to selling, to become more sustainable.

How the Fashion Industry Impacts the Environment

Fast fashion has a huge impact on the environment. As per estimates, the global fashion industry is responsible for -10 % of human-caused greenhouse gas emissions and -20 % of global water pollution. 93 billion cubic meters of water, enough to meet the needs of five million people, is used by the fashion industry annually, contributing significantly to water scarcity in some regions. Around 20% of industrial wastewater pollution worldwide originates from the fashion industry.

Reports suggest that more than 50% of fast fashion clothes are discarded within a year of purchase; 30% of global clothing is never sold; and another 30% is only sold at a discount. This has resulted in mounting piles of unsold stock, with several large retailers carrying unsold inventory worth billions of dollars. It is estimated that of the 100 billion garments produced each year, 92 million tons end up in landfills. It is evident that the fashion industry is plagued by the problem of overproduction.