Executive Summary

This paper seeks to offer aprofound analysis of ways that a sustainable business model can be integrated into warehousing management in the fashion industry. It provides a well-thought evaluation of warehousing trends in the fashion industry and ways that they impact on economic, environmental, and social needs. In the introduction section, there is a detailed explanation of the importance of the topic and how it can assist to streamline warehousing operations in the fashion industry. There is an application of the Triple Bottom Line approach and its benefits in managing operations of a business.In the literature review section, there is a highlight ofpast studies by different researchers, the gains made, and their limitations. Additionally, the paper offers an analysis of differentmodels and theories that can be integrated into sustainablewarehousemanagement. The paper concludes by conducting an evaluation of sustainable warehousemanagement and highlighting some of the recommendations that can be adopted by the business such as the use of the Triple Bottom Line model.

Introduction to Sustainable Warehouse Management in the Fashion Industry

Currently, there isa growing need forbusinesses to adopt sustainable trade models.  Sustainable businesspractices are anchored on the TripleBottom Line model as they seek to counter the social and environmental impacts of businessoperations. The TBL model is instrumental in reshapingoperations in the fashion industry as many manufacturers and suppliers are exhibiting the commitment to produce green products. There are also changes in the treatment of workers, relations with the local communities, planning of the economic objectives, and measures to conserve the environment (Aguiñaga et al. 2018. 190).

The fashion industry has significant impacts on local communities and the environment as it has a high demand for natural and human resources. As such,tapping these resources, dumping of wastes and the storage of both finished products and raw materials must be seen to be sustainable (Arminen et al. 2018, 430). An example is a fact that some fashion products are made from toxic materials, and, thus, lowers environmental biodiversity as well as affecting the health of consumers. However, these issues can be addressed by incorporation of the TBL model as opposed to just evaluating the efficiency levels by the net profits.

Contrary to the view that adoption of sustainable business models lowers the net profit levels, different studies assert that it is an ideal way of safeguarding the future operations of a business as well as shaping its public image. The argument rests on the fact that uncontrolled exploitation of raw materials can lead to depletion, thus destabilising the future operations in the fashion industry (Burki et al. 2018, 1310). However, the adoption of a sustainable model will ensure that there is the minimisation of waste levels, operational costs, and other inefficiencies in the production processes.

One of the essential aspects of supply chain management is warehousing. Warehousing ensures that there is continuity in the production and procurement processes. In many cases, businesses tend to outsource warehousing and transportation to other third parties. However, such parties often have little regard for the environment as most of their operations are seen as being unethical (Christopherand Towill. 2011, 240). Such businesses focus their operations only by customer satisfaction levels and cost-effectiveness of their activities. It implies that there is a failure to consider both social and environmental impacts of operations.

The concept of corporatesocialresponsibility requiresthe management of any organisation to considerthe implications of businessoperations on stakeholders. While CSR is not a legal requirement, it serves to ensure that all activities are ethical and there are reducednegative impacts on the environment. Similarly, many customers tend to focus on whetherbusinessoperationsadhere to the set of laws and ethics (Christopher et al. 2014, 370). It implies that engaging in unethical businessoperations may taint the public image as well as lower the competitive advantage of a business. One of the areas that can be addressed to ensure that there are minimal impacts on the environment is warehousing.

Literature Review

Many studies have been conducted with the aim of determining approaches that sustainablebusinessmodelscan counter the negative impacts on the environment. While most studies were researched on manufacturing and production processes, they can as well be applied in warehousemanagement. Clarke et al. (2019. 1210) are of the view that lack of regulations and integration of sustainable model in the supply chainmanagementhas led to increased levels of environmental pollution and other complications. They attribute the trend to the adherence on profit maximisation without having an equal consideration on the impacts their operations have on the environment and local communities.

A similar position is held by (Cragg et al. 2018, 20) who infer that the failure of many businesses to adhere to the set regulations have led to increased levels of environmental pollution. The trend can be linked to the fact that many fashion industries are only keen on maximising profit levels and often fail to adhere to the set regulations. One of the areas that have been found to increase the problems regards the use of energy. The ongoing energy consumption can be trimmed as having the effect of increasing carbon footprint as well as leading to unsustainable business operations due to increased extraction of natural resources.

Edgeman et al. (2015) argue that the case on energy conservation is unlike a setting where there is the use of renewable sources of energy such as solar, wind, and hydropower. Not only are such energies cost-effective, but they are also seen as having minimal impacts on the environment. It is critical to note that warehouse management deals with planning of services from suppliers to manufacturers, and customers. Through consideration of barriers in the business like a shortage of raw materials and finished products, there is an increased chance of increasing the profit levels. Some of the benefits that come with sustainable warehouse management include the reduction in the operational costs, increased satisfaction levels, stronger brand appeal, and reduction of negative impacts on the environment (Fem and Livingstone. 2018, 250).

Under the concept of corporate social responsibility, it is expected that each business operation is evaluated by impacts that it has on its stakeholders such as the local communities, customers, and suppliers. Unsustainable business models can be defined as having adverse impacts on the environment and the welfare of the local communities. Environmental pollution leads to the loss of biodiversity, increased carbon particles in the air, and the prevalence of health complications. Nonetheless, a business can attain better visibility and a positive public image by ensuring that its operations conform to the set regulations (Formentini, 2016).

Different scholars infer that there is a need to come up with appropriate approaches that can transform business operations and help to counter negative impacts as a result of unsustainable practices of warehouse management. Another additional impetus to this view is that there are high levels of emissions from transportation activities, thus increasing the level of pollution. In other cases, there is storage of harmful products in the warehouses, hence the need to uphold safety measures. In the past, leaking of poisonous products such as chemicals and oil products have led to significant environmental damages. As many businesses seek to increase the global presence levels, there is an equal increase in the number of warehouses in the globe, thus the need for better and sustainable approaches for warehouse management.

Analysis

Many businesses often employ the Triple Bottom Lineapproach in a bid todetermine impacts that their operations have on different stakeholders. It ensures that none of the critical areas in a business operationis sidelined (Shen and Li. 2015, 1170). It has the benefit of broadening the financial bottomline ofbusiness and ensuring that there is an inclusion of both social and environmental factors. The model is seen as being useful in determining the environmental impact, economic value, and the socialresponsibility of a business. While there are some challenges in the measurementof the socialresponsibility of a business, it stems from the commitment to improving the welfare of the local communities.

In most cases, the net profit of different firms serves as the bottom line in many financial statements. However, it is not always the case thatprocesses that lead to the attainment of such profits are ethical. On the contrary, there are instances where there is full disregard on environmental and socialregulations. Other than just using the net profit as being the sole bottom line in financialstatements, there is the call to equally focus on other elements such as the environmental and socialimpacts (Giannakisand Papadopoulos. 2016, 460). Manyrepercussions have resulted from the focus on the net profits only as the objective of various business operations. Such impacts include the rise in global warming, loss of biodiversity, health risks, and other complications.

TBL is an effective model that seeks to ensure that businesses are operated in amanner that not only leads to the generation of profits, butthere are also similar efforts to safeguard the social and environmental needs.  However, critics of the TBL argue that incorporation of the model in businessoperations may make it hard to maximise the profits levels, and, thus, it may derail the attainment of the economic objectives (Gružauskas et al. 2018, 715). It is worth noting that there is an ongoing shift inconsumers’attitudes as there is a growing prevalence of viable goods. It implies that customers are now willing to pay more for goods that are produced sustainably.

Under the current setting, there is increased adoption of sustainable business operations as a way of reducing the impacts on the environment and operational costs. Sustainable management thus seeks to ensure that there is both integration and balancing social, economic, and political factors. Many businesses can be defined as only being keen on maximizing the profits levels without consideration of the impacts on the environment and the local communities. Such a trend often increases the risk of conflicts with stakeholders and environmental degradation (Indrawati et al. 2018).

Sustainable business models are seen as being the most effective way of taking care of the environment as well as safeguarding future business operations.Some of the areas that are covered by sustainable business models include the use of energy, operational processes, extraction of resources, and dumping of wastes. One of the areas that have emerged as being an essential aspect of the business is the use of clean sources of fuel. Over the past, there has been an increased reliance on carbon-based fuels, thus leading to a high number of carbon particles in the environment.

Warehousing can be defined as being an important process as it ensures that there is a smooth running of all operations. Recently, there has been the adoption of online business platforms as a way of venturing into other countries (Jeong et al. 2008, 120). However, the trend implies that there is a need to have warehousing services as this would allow for the storage of finished goods and other raw materials. Other than striving to ensure that there is a reduction in the operational costs, there is the central need to guarantee that the operations do not impact negatively on the environment. The increase in the level of global warming creates significant challenges to both local communities and the concerned business operations.

Recent developments in both safety and health sectors assert that warehousing has direct impacts on the welfare of workers and the environment. There is increasing pressure from environmentalorganisations and government agencies to ensure that there is the adoption of measures that help reduce the pollution levels (Karaosmanand Brun, 2016. 500). Organisations that incorporate sustainable business operations are seen as having a competitive advantage over other market players. Issues such as environmental footprint, customer retention levels, profitability, and improving public image can be attained through having sustainable business models. Other than focusing on the location of the warehouse, there is a similar urge to pay similar attention to the operational processes.

Due to the diverse nature of goods being handled, businesses must conform to the set environmental and safety regulations. An example is the fact that strategies of handling food products are different as compared to the approaches of dealing with hazardous products. As such, all businesses should ensure that employees are trained and equipped with the required safety equipment in warehouse operations (Khuranaand Ricchetti. 2016, 100). Offering the needed safety equipment and guaranteeing that there is the regular training of workers is critical in reducing unsustainableimpacts of warehouses to the environment.

Sustainability focuses on the need to increase retention levels of employees as regular hiring of workers increases operational costs. It is worth noting that retaining warehouse employees means that high experience level is reserved while equally promoting the profitability levels. Most governments have put in place different laws and regulations that require warehouse managersto implementmeasures to reduce the levels or health risks and pollution on the environment (Shand et al. 2017, 70). One of the ways that this can be attained is throughthe adoption of new technologies. Innovations often have the benefit of reducing the operational costs and the period taken to performdifferent functions.

Integration of warehouses with new technologies implies that there will be less reliance on manual labour, therefore, reducing the level of accidents. Moreover, such techniques have also been found as having the benefit of lowering pollution levels on the environment while equally ensuring that there is the attainment of the set objectives. The concept of warehouse sustainability provides that none of the business operations is sidelined. An example is a fact that focusing on the protection of the environment while failing to address economic goals of a business may make the business operations unsustainable (Reilly, A.H. and Larya et al. 2018, 635).

However,sustainable adoption models ensure that there is a striking of a balance between these elements. Ideal warehouse management guarantees that there is an efficient interaction of all operations. It thus entails a shift from an individual’s efforts to an interconnected system. As such, employees should be briefed on their roles in the organisation, the set objectives, and the benefits that come with a sustainable model as well as their duties in the attainment of suchgoals (Presleyand Meade. 2018, 140). Capital investment is an essential aspect of warehouse management as it ensures that there is a regular restructuring of the operational process to conform to the market trends. It also assists in reducing the reliance on manuallabour and boosting the efficiency levels of staffs. However, various studies assert that there is an inadequateallocation of resources to warehouseoperations in many organisations. While there is a focus on the production and marketingprocesses, it is worth noting that many managers sidelinewarehousing management. On the other hand, there isalsostress onemployeetraining levels as a way of ensuring that there are quality and competent delivery of services (Mota. 2015, 25). Depending on the levels of risks in each industry, the management has to set outregulations that need to be observed inthe training of workers and storage of goods.

Likewise, there is a focus on carbon minimisation levels and other adverse environmental footprints. The impacts on the environment are seen as being the most effective way of evaluating the sustainability level of business operations. Other than engaging in activities such as planting trees, there is the urgeto come up with measures that help to reduce the level of pollution. Moreactions ought to be placed in cases where workers are dealing with toxic products.

Evaluation and Recommendation

Focusing on the fashion industry indicates that there is a need to have better integration and adoption of appropriatemodels that consider environmental, economic and social objectives. It is worth noting that many players in the fashion industry are unaware of the benefits that come with sustainable warehouse management (Macchion et al. 2018, 25). While there have been changes in the production and manufacturing sector, it is imperative to note that warehouse management remains sidelined. The trend indicates that warehousemanagers in manyorganisations do not employ the TripleBottom Line in the planningprocesses.

Before the introduction of any change in the warehouse operations, it is vital to conduct a TBL evaluation. Such an assessment ensures that all elements are in balance and maximum benefits are attained from the operations. There is the view that the introduction of new technologies would come in handy in reshaping the operations processes. The reliance on obsoletetechnology can be defined as being one of the factors that have led to high operational costs as well as reduced the competitiveadvantageof the business (Martino et al. 2017, 150).  However, introducing new technologies will lead to better integration of all processes and minimisation of the level of wastes.

On the other hand, it isrecommendable to adoptclean sources of energy such as solar and wind power. Warehousing may include processessuch as refrigeration and lighting, thus implying that there is a need for high energy usage. However, the reliance on unclean sources of energy is seen as being one of the factors that lead to a rise in the carbon footprint levels. During the budgeting process, the management of fashion industry ought to ensure that there is an adequate allocation of resources that would contribute to the adoption of clean energy and better technologies.  Likewise, training employees on some of the safety measureswould help reduce the number of accidents and environmentalpollution in the fashion industry (Masson, 2007, 250).

Organisations that train workers regularly are seen as having fewer incidences of environmental pollution and also tend to have a higher competitive advantage to other players.  On the other hand, the concerned business can undertake to take part in environmental awareness campaigns and communityinitiatives. Such inventiveness may include planting of trees, collecting garbage, and other innovations. Taking part in suchactivitieswould ensure that the organisation has a strong CSR and is committed to countering impacts that come with unregulatedbusinessoperations. Not only would it shape the public image, but it would come in handy in minimising possible conflicts with other stakeholders.

From the featuredinformation, it isevident that there are different ways through which players in the fashion industry can better position their operations to attain their economic objectives without having negative impacts on the environment or socialstructures. The incorporation of the TripleBottom Line has the benefit of ensuring that there is consideration of the environmental, social, and economic factors (McPhee. 2014, 8). Nonetheless, the failure to adopt a sustainablebusiness model may have adverse impacts on the industry as it may trigger depilation of raw materials, and conflicts with other stakeholders in the fashion industry.

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