BUSM 4791  Global Fashion Sourcing
Assignment 1


Sustainability of Fashion Supply Chain Analysis

Hollister Co & Saint Laurent



Submitted by 
Student Pingping (s3959812)
























Executive Summary
In this study, the fashion supply chains of two well-known companies, Hollister Co. and Saint Laurent, are examined for their sustainability. The investigation focuses on the modifications made by both businesses throughout the pandemic lockdowns and transitional phases, considering elements like worker safety regulations, digital transformation, and localized production. The two companies' different responses to the epidemic are highlighted through a comparison of their strategic stances. The research also discusses how AI/ML-based technologies may improve forecasting accuracy, inventory control, consumer happiness, and environmental sustainability in the context of the fashion supply chain. Additionally, the contribution of automated supply chain management to better order processing, inventory control, logistics, and sustainability is looked at.





Table of Contents
Executive Summary	1
Introduction	2
PESTSL Analysis of macro-environmental Factors	2
Brand A: Changes during Pandemic Lockdowns and Transition	2
Saint Laurent	2
Brand B: Changes during Pandemic Lockdowns and Transition	3
Hollister	3
Comparison of Strategic Approaches	4
Impact of AI/ML-based Technologies on Fashion Supply Chains	5
Technology 1: [AI/ML Technology 1]	5
Technology 2: [AI/ML Technology 2] Automated Supply Chain Management	6
Conclusion	7
Reference List	7
Appendices (including RCO list)	8


Introduction
In this study, the fashion supply chains of Hollister Co. and Saint Laurent are examined for their sustainability, with an emphasis on the adjustments made by both companies throughout the pandemic lockdowns and transitional phases. It examines the large-scale environmental elements—political, economic, social, technical, environmental, and legal—that influence supply chain and sourcing choices. The purpose of the study is to examine the strategic responses to the pandemic taken by Hollister Co. and Saint Laurent, focusing on their initiatives to guarantee worker safety, execute digital transformation, and embrace sustainable practises. The research also discusses the potential advantages and contributions of AI/ML-based technologies to the triple bottom line (economic, social, and environmental) as they relate to fashion supply chains. It concludes by summarizing the key findings and providing recommendations for improving the sustainability of fashion supply chains.
PESTSL Analysis of macro-environmental Factors
Macro-Environmental factors	Impact on supply chain and sourcing
Political	- Tariffs and trade policy can affect supply chain costs and decisions about global sourcing. 
- Supply chain disruptions and ease of doing business are impacted by political stability.
Economic	- Consumer spending and the demand for fashion goods can both decline during economic downturns. 
- Currency changes have an impact on the price of sourcing and global trade.
Sociocultural	- Shifting consumer trends and tastes have an impact on demand projections and source choices. 
- Consumers are placing a greater emphasis on ethical and sustainable sourcing techniques.
Technological	- Technological developments enable real-time tracking, data analytics, and supply chain automation. 
- Distribution and consumer expectations are impacted by e-commerce and digital platforms.
Environmental	- Supply chains and sourcing areas may be affected by natural catastrophes and climate change. 
- The need for ethical supply chain and sourcing practises is fueled by environmental legislation and sustainability issues.
Legal	- Labour laws and regulations have an influence on supply chain labour practises and sourcing decisions. 
- Protection of intellectual property rights is essential for fashion firms.

Brand A: Changes during Pandemic Lockdowns and Transition
Saint Laurent

Several adjustments were made to Saint Laurent's supply chain because of the lockdowns brought on by the epidemic. These adjustments were made to protect the company's employees, ensure business continuity, and implement sustainable practices.

Worker safety measures were put in place by Saint Laurent to safeguard its employees in the supply chain facilities. Social seclusion, routine sanitization, and the provision of personal protective equipment (PPE) to staff were some of these precautions.

Digital transformation: To reduce interruptions brought on by lockdowns, the brand used digital technology. To contact consumers during lockdowns and lessen dependency on physical stores, it invested in digital platforms for virtual meetings, remote collaboration, and e-commerce.

Localized manufacturing: Saint Laurent investigated the idea of localized manufacturing as a way to reduce the risks related to interruptions in the global supply chain. The brand intended to reduce lead times and boost flexibility by locating production sites closer to its important markets.

Saint Laurent decided to pull out of Paris Fashion Week in April 2020 due to the COVID-19 crisis, as mentioned in the RFI link. They chose to set their own schedule and explore alternative ways to showcase their collections.
The WWD feature discusses Saint Laurent's decision to skip Paris Fashion Week and focus on their own agenda, indicating a shift in their strategic approach to fashion events during the pandemic.
While both brands responded to the pandemic and implemented measures to ensure safety, their strategic approaches differ. Hollister focused on maintaining a safe environment in their stores and supporting their employees and communities. On the other hand, Saint Laurent took a more independent approach by pulling out of fashion events and setting their own schedule. (Yves Saint Laurent pulls out of fashion week 2020 over covid-19)


Brand B: Changes during Pandemic Lockdowns and Transition
Hollister
Hollister prioritised the wellbeing and safety of its clients and staff. They improved cleaning procedures, took steps to distance themselves from people, and restricted shop capacity.
The company emphasised their dedication to helping their workers and communities during difficult times. In remarks they issued, they addressed the COVID-19 situation and described the steps they were taking to ensure the safety of both their staff and their clients.
During the epidemic, Hollister temporarily shuttered its physical locations and instituted work-from-home procedures for its staff.
Additionally, they routinely updated their clients on store reopening, safety precautions, and online purchasing choices through a variety of platforms.( statement Hollister )


As a result of the lockdowns brought on by the pandemic, Hollister, a casual clothes company, also suffered substantial disruptions in its supply chain. The company put special emphasis on developing its e-commerce skills, protecting the security of its workers, and adopting sustainability programmes.

Employee Safety Measures: Hollister adopted stringent safety procedures in its supply chain facilities, just like Saint Laurent did. By establishing social distance, offering PPE, and putting stronger cleaning and sanitization procedures in place, it gave its employees' health and wellbeing top priority.

E-commerce Expansion: Hollister quickly enhanced its e-commerce capabilities after identifying the rise in demand for online buying during lockdowns. To handle the increasing volume of online orders, the company invested in fulfilment centres, upgraded the online shopping experience, and optimised its website.

Hollister concentrated on improving the robustness of its supply chain by varying the sites of its manufacturing and sourcing. This plan was designed to lessen the possibility of interruptions brought on by upcoming lockdowns or other unanticipated circumstances.

Initiatives for Sustainability: Hollister has worked to integrate sustainable practises throughout its supply chain. The company has made a commitment to employing eco-friendly resources in its goods, such organic cotton and recycled fibres. As part of its operations, it has also started steps to cut down on waste, improve energy efficiency, and use less water.

Comparison of Strategic Approaches

Comparison and contrast or strategic approaches
While Hollister and Saint Laurent have made attempts to improve e-commerce capabilities, protect worker safety, and implement sustainable practises, there are significant variations in the two companies' strategic philosophies.

premium vs. Casual: Saint Laurent, a premium company, concentrated on preserving the exclusivity and high quality of its products while adjusting to the shifting market conditions. In contrast, Hollister, a casual brand, sought to satisfy the needs of its target market by offering a simple and convenient online purchasing experience.

Localisation vs. Resilience: Hollister concentrated on diversifying sourcing and manufacturing sites to increase overall supply chain resilience, whereas Saint Laurent's strategic strategy explored localised production to lower supply chain risks.

Scope of Sustainability: Although both businesses used sustainable methods, Saint Laurent gave more attention to ethical production, sourcing, and waste management. Conversely, Hollister made a point of operating with energy efficiency and using sustainable materials.


The COVID-19 epidemic has pushed the adoption of e-commerce and digital platforms in the fashion sector. Shift towards E-commerce and Digitalisation. As a result of this transformation, supply chain and sourcing operations have changed, with a greater emphasis now being placed on online sales channels, last-mile delivery optimisation, and digital supply chain management.

Increasing Demand for Transparency and Sustainability in the Fashion Industry: Consumers are calling for more ethical and sustainable sourcing. Fashion companies like Saint Laurent and Hollister have prioritised ethical sourcing methods, traceability, and environmental sustainability throughout their supply chains as a result of this change agent.

Changes in trade agreements, tariffs, and geopolitical environments have altered the dynamics of international commerce. By requiring the consideration of alternative sourcing methods, supplier diversity, and adherence to trade restrictions, this driver of change has an influence on supply chain and sourcing operations.






Impact of AI/ML-based Technologies on Fashion Supply Chains

Technology 1: [AI/ML Technology 1]

Improved Forecasting Accuracy: To provide accurate demand estimates, predictive analytics may analyze data from a variety of sources, including sales history, industry trends, social media, and weather patterns. This makes it possible for clothing companies to optimize manufacturing, lessen excess inventory or stockouts, and cut waste.

Improved Inventory Management: AI-powered predictive analytics may improve inventory levels by anticipating demand and comprehending client preferences. As a result, holding costs are decreased, cash flow is increased, and storage space is used more effectively.

Improved Customer Satisfaction: Patterns and preferences may be found by analyzing customer data and behavior using predictive analytics. This gives fashion firms the ability to tailor their products, run targeted advertisements, and enhance the entire consumer experience, all of which promote client happiness and loyalty.

Reduced Environmental Impact: Fashion firms may manufacture just what is required, reducing overproduction and waste, with the help of precise demand forecasts. By minimizing resource use and carbon emissions, this helps fashion firms achieve their environmental sustainability goals.


The triple bottom line will benefit from the adoption of predictive analytics technologies in the supply chains of clothing companies like Hollister and Saint Laurent.

Economic Impact: Increased operational efficiency, better resource allocation, and cost savings are all benefits of improved forecasting accuracy and inventory management, which also positively affects the economic component of the triple bottom line.

Impact on society: The social component of the triple bottom line is enhanced through personalized offers and enhanced customer experiences. Accurate demand forecasting also aids in avoiding stockouts by ensuring that customers can obtain requested items, which may have a favorable effect on social factors like customer satisfaction and loyalty.

Environmental Impact: The implementation of predictive analytics technology correlates with the environmental component of the triple bottom line by decreasing overproduction, minimizing waste, and optimizing inventory levels. It promotes environmental sustainability in the fashion sector by lowering carbon emissions, resource use, and waste production.


Technology 2: [AI/ML Technology 2] Automated Supply Chain Management
Fashion companies like Hollister and Saint Laurent might see a transformation in their supply chains thanks to automated supply chain management, which is powered by AI and machine intelligence. By automating a variety of operations, including order processing, inventory management, and transportation, this technology improves productivity, lowers costs, and promotes sustainability.

Efficient Order Processing: AI-powered automation may simplify the workflow for processing orders, doing away with manual labor and cutting down on mistakes. As a result, orders are filled more quickly, accurately, and with higher customer satisfaction.

Improved Inventory Management: Automated supply chain management systems can detect demand trends, continually track inventory levels, and place replenishment orders as necessary. This assures the right amount of inventory, lessens stockouts, and cuts back on surplus inventory.

Intelligent routing and logistics: AI algorithms can optimize logistics operations by looking at things like delivery routes, delivery prices, and current traffic conditions. This results in more fuel-efficient transportation, cheaper fuel costs, and fewer glasshouse gas emissions.

Sustainability and Transparency: Automated supply chain management systems may give fashion firms real-time insight into the supply chain, enabling them to track and trace items, check that suppliers are adhering to sustainability standards, and guarantee ethical sourcing procedures.

The triple bottom line will be significantly impacted by the fashion industry's implementation of automated supply chain management technology:

Automated procedures reduce costs, boost productivity, and allocate resources more effectively, all of which have a beneficial effect on the economic component of the triple bottom line.

Social Impact: Timely delivery, higher customer satisfaction, and shorter lead times are all benefits of enhanced order processing, optimized inventory management, and effective logistics. By exceeding consumer expectations and improving the entire customer experience, this favorably affects the social component of the triple bottom line.

Impact on the environment: Automated supply chain management solutions improve logistical processes, cutting down on fuel use, carbon emissions, and environmental impact. Additionally, the ability to track suppliers' adherence to sustainability criteria encourages ethical and responsible procurement, harmonizing with the triple bottom line's environmental component.



Conclusion
The resilience and adaptation displayed by both brands during the pandemic and transitional eras are highlighted by this research of the sustainability of fashion supply chains in Hollister Co. and Saint Laurent. While both companies placed a high priority on employee safety, Hollister Co. concentrated on upholding a secure atmosphere in its physical locations and supporting its workers and communities. Saint Laurent, in contrast, adopted a more autonomous strategy by skipping fashion shows and creating their own calendar. The use of AI/ML-based technologies, such enhanced forecasting precision and automated supply chain management, has the potential to significantly improve the sustainability of the fashion supply chains. Better demand forecasting, effective inventory management, and optimized logistics are made possible by these technologies, which has a positive influence on the economy, consumer happiness, and the environment. Both companies should keep putting money into digital technology, give ethical sourcing top priority, and deepen the integration of sustainability practices across their whole business to increase the sustainability of their supply chains. Hollister Co. and Saint Laurent may become industry leaders in sustainable fashion supply chain management by embracing innovation and sustainability.


Reference List






Appendices (including RCO list)

RCO1
The sourcing process	This section discusses the different stages of the sourcing process, such as transactional sourcing, strategic sourcing, e-sourcing, and integrated sourcing.
RCO2 
Strategic sourcing	This section defines strategic sourcing as an approach to supply chain management that focuses on continually evaluating procurement processes, methods, and sources to optimize value for a business. It highlights that strategic sourcing goes beyond just price and product and includes considerations of internal processes, operational processes, policies and procedures, procurement processes, demand drivers, and inventory practices.
RCO3
Three types of purchases	This section explains three types of purchases: straight re-buy, modified re-buy, and new task. It describes the characteristics and circumstances under which each type of purchase occurs.
RCO4 
Steps in the strategic sourcing process	This section outlines the three main stages of the strategic sourcing process: discovery, strategy design, and execution and monitoring. It provides a summary of the activities involved in each stage, including business requirements analysis, supply market analysis, sourcing strategy development, supplier selection, and contract implementation.
RCO5
The core principles of strategic sourcing	This section discusses the core principles of strategic sourcing, including evaluating supplier relationships, certifications and registrations, Lean Six Sigma certification, Fairtrade certification, procurement price and value, and assessing total costs.








Basic on this, fine relative reference