Value Stream in the Reverse Supply Chain : Case Study of the Second-Hand Concept of a Swedish Multi-Brand Fashion Retailer

Abstract: Background It has become increasingly a problem that fashion products reach their end-of-life when they are still usable. Today, a fast-changing wardrobe has gained importance which is directly linked to overloaded landfills of textile waste and scarcity of natural resources. The pressure on companies to act upon this unsustainable consumption pattern is increasing. Different strategies are currently in the development. Within reverse supply chains, products are collected from the original user for value recovery. This study focuses is in particular on the reuse of clothing without additional treatments. Purpose The aim of this study is to investigate the value stream of a traditional fashion retailer entering the second-hand business. At the same time, possible challenges and potential areas of improvement should be identified. The reuse of garments should provide consumers a more sustainable alternative for consumption. To serve this purpose, a case study was conducted to describe key activities and formulate suggestions. Methodology The research was conducted as a qualitative case study. The data collection included personal communication, process observation and an in-depth semi-structured interview. The findings were analyzed using a value stream mapping method. Findings and Discussion The data collection offered a holistic insight into the processes and motivation that are involved in the second-hand concept of the studied retailer. The findings concerning the reverse logistics were depicted in the current-state value stream map. This was adjusted to a possible future-state map based on improvements which were elaborated with the reviewed literature. Additionally, a recommendation for a performance measurement framework was developed. Research limitations The studied retail concept was still at its start-up stage at the time of the research. Therefore, only a limited amount of empirical data was available to collect. Furthermore, the research was conducted over a short period of time and the impact of the recommended improvements for the value stream could not be observed and evaluated. A future research is suggested to focus on the monitoring of the implementation of the future-state map. The success can be assessed with the help of the proposed performance measurement framework and based on that a new future-state map should be created to ensure continuous improvement.