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“ Climate change is a central challenge for the retail industry that has pushed brands to incorporate sustainable retailing practices to achieve net-zero carbon emissions. Technology-driven solutions can accelerate the transition to a healthy, resilient and sustainable future by building a decarbonization pathway, across the supply chain, and helping brands win the Race to Zero. ”
Inventory, even though a valuable business asset, can be potentially damaging if not managed efficiently. According to a recent post by the World Economic Forum, the fashion industry is one of the world’s most polluting industries; producing one-tenth of global carbon emissions and nearly a fifth of wastewater with a truck full of unsold inventory burned or dumped every second.
Fashion production makes up 10% of humanity’s carbon emissions, dries up water sources, and pollutes rivers and streams.
What’s more, 85% of all textiles go to the dump each year. And washing some types of clothes sends thousands of bits of plastic into the ocean.
~20% reduction in inventory holdings, keeping the revenue and profits the same. Unnecessary fabric consumption and production optimization help minimize industrial waste that can cause breathing issues, generate genetic deformities in newborns and lead to depletion of the Ozone layer.
~ 2.1M miles saved in logistics and ~ 20% increase in regional fulfillment. By intelligently placing inventory closer to consumers retailers can facilitate faster order fulfillment, lower-order cancellation, and lesser returns, thus reducing logistics miles.
Prevention of wastage and spoilage of expirable inventory minimizes dumping.
Prevent dead inventory from lying in the warehouse and also eliminate the need for buffer stock.
Fulfillment from the local warehouse reduces environmental impact, facilitates faster deliveries, lowers returns or order cancellations due to delay, and boosts customer satisfaction.
Returns data can be used for making valuable merchandising decisions related to product quality, shopper preference (product/ store), vendor performance, etc, providing more opportunities for sustainable retailing.
Rapid re-commerce through instant re-listing of quality passed goods on sales channels prevents wastage and promotes sales.
Strategically locating returns-processing reduces road miles and cuts carbon emissions.
Demand-wise inventory distribution helps in the conservation of resources such as land, manpower, and electricity to improve operational efficiency.
Limit product wastage and decay by redistributing inventory as per customer demand, between stores and warehouses