16 Pages
3875 Words
Introduction - Zara’s Green Manufacturing: AI, IoT & Eco-Materials
1.1 Background of the research
Sustainable manufacturing is defined as the creation of products and services which are economically and environmentally friendly. For the successful working of the company, it is very necessary that sustainable working is performed so that the environment and the surroundings can be kept safe and healthy. The operations and working of the company also affect the environment and as a result of this, it is the responsibility of the company that they must protect the environment effectively. The current study is based on Zara which is a Spanish multinational clothing brand. The company was founded in the year 1975 by Amancio Ortega and Rosalia Mera and is headquartered in Spain. The current study is based on an evaluation of the different sustainable manufacturing technologies which are used by the company. Also, it will analyse the impact which these strategies will create on the working and competitive advantage of the company.
1.2 Organizational background
The company Zara was founded by Amancio Ortega and Rosalia Mera in the year 1975. The company deals in designing, producing, distributing, the retails accessories, swimwear, beauty products, perfume, shoes and other range of products dealt in the fashion industry. The company is known for the ability of developing new products and bringing them into the stores within less period of time. The company is consistently acting as a Pioneer within the fashion industry and is trying to make a place between the customers effectively. The company is expanding with fast speed and as a result of this the company is improving their working efficiency by focusing on better manufacturing.
1.3 Significance of the problem
The current working environment is much focused on environmental protection and companies must reduce all the issues and try to protect the environment. Hence, the current study is of significance to the company Zara as the study is based on the company. Thus it will assist the company in evaluating the fact that how these strategies will be assisting the company in protecting the environment (Islam, Perry and Gill, 2021). In addition to this, the study is also of significance to the competitors of Zara as they can also implement the related strategies for managing sustainable production and manufacturing. Along with this, the researchers who are conducting the study on a similar kind of topic can also use the present study as it will guide them in conducting the study better.
1.4 Statement of purpose
The purpose of selecting the current topic is that to sustainability is much focus to within the operational efficiency of the business. Thus, for managing the working capability it is very necessary for companies to ensure sustainability within their process and functioning. Hence, the reason behind selection of the current research topic is to enhance the knowledge relating to the sustainable manufacturing technologies which are assistive to fashion industry for improving the performance. In addition to this, the purpose of the study is acknowledging the readers relating the impact of these technologies over the competitive advantage of the company.
1.5 Statement of problem
In the current working environment the competition is intense and as a result of this it is necessary for companies to have some differentiated working. Thus, when the companies will be focusing on the sustainability then it will be helping the business in improving their working efficiency. Hence, statement of problem includes the evaluation of the sustainable manufacturing technology and the impact being created over the competitive advantage of the business.
1.6 Aim and objectives
Aim
To examine the impact of using sustainable manufacturing technologies on the competitive advantage of the company. A study on Zara.
Objectives
To understand the concept of sustainable manufacturing technologies and its significance. To evaluate the various sustainable manufacturing technologies used by Zara. To analyse the impact and relation between using sustainable manufacturing technologies and competitive advantage of the company. To recommend some of the ways of improving the sustainable manufacturing in Zara.
1.7 Research questions
What is the concept of sustainable manufacturing technologies? What are the different manufacturing technologies used by Zara for keeping the working sustainable? What is the impact created of using these technology over the competitive advantage of the company? What are some of the recommendation which are assistive in improving sustainable manufacturing?
1.8 Dissertation structure
Chapter 1: Introduction
It relates to providing an overview of the topic of research and the background of the organization on which the study is based. Further, it will also provide the significance of the research topic and the reason for selecting it.
Chapter 2: Literature Review
This section of the study will highlight the views of different authors and scholars who have already worked on the related topic. It will outline the review of the work of different authors to support the current study.
Chapter 3: Research Methodology
Further, research methodology chapter of the dissertation outlines the method selected for completion of the study. It includes evaluation of the methods, type, philosophy, approaches, data collection method and other decisions relating to the completion of study.
Chapter 4: Data analysis and findings
The data analysis section of the dissertation outlines the evaluation of the data being gathered. It includes evaluating the primary responses along with the secondary sources.
Chapter 5: Conclusion and Recommendations
The last chapter of the dissertation includes conclusion and recommendation wherein the summary of the whole dissertation is provided. In addition to this, areas of improvement is provided with help of the recommendation.
Chapter Two: Literature Review
2.1 Introduction
LR refers to academic writing that representing understanding and knowledge of academic literature on the particular topic. It provides complete information about the specified topic with coherency and relevancy. This chapter focuses on assessing the impact of sustainable manufacturing technologies in the UK fashion sector in order to gain the competitive advantage. Apart from this, the LR covers several themes such as concept of sustainable manufacturing technologies and its importance. It also confers the several sustainable manufacturing technologies that are used by the organizations within the fashion sector.
2.2 Concept of sustainable manufacturing technologies and its importance
According to Elf, Werner and Black, (2022) in the current times, sustainable development is imperative parameter and it helps in meeting the requirements of the customers without compromising the capability of future generations in order to meet their requirements. To protect the environment and health of the customers the manufacturers are likely to use technologies to produce the sustainable products. As per the view of Goworek and et.al, (2020), sustainable manufacturing refers to a creation of produced goods with the help of economically sound process that minimize the adverse impact of environment while using natural resources and conserving energy. In other words, sustainable manufacturing is also called as green manufacturing and it demonstrates the holistic approach to the process of producing the products with primary focus on minimizing societal, environmental and economic impact. In present business environment, all the companies are focusing towards the sustainable manufacturing because it helps in foster eliminating and minimizing the process of production and processing waste with the help of new environmental technologies and co-efficient practices. As critically argued by Claxton and Kent, (2020), green manufacturing is time-consuming process for the fashion companies within UK. For sustainable manufacturing it is crucial for the organization to continuous monitoring and put all the efforts in ensuring that all system are converted which takes more time.
Sharma, Jabbour and Lopes de Sousa Jabbour, (2021) assessed that, for every business it is crucial to implement sustainable practices and use technologies because it enable its success and profitability. Sustainable manufacturing is important for the business because it helps in enhancing the overall operational performance by minimizing quality defects and energy consumption. Sustainable manufacturing is important for the organizations because it helps in cost-saving by reducing the volume of resources and materials that use to manufacture the final product. Most of organizations are benefit from these savings by adopting new initiatives such as pollution reduction, energy-saving, raw material reuse and reduction as well as economical driving. However, Fung and et.al, (2021) argued that, for manufacturing the sustainable products the companies are require to adopt latest and update technologies which are costly investment for them.
In addition to this, sustainable manufacturing is beneficial for the companies because it helps in attracting the customers and increases their loyalty which directly impacts the profitability and sales. The customers are likely to purchase the eco-friendly products in order to protect the environment and safeguarding for their health so sustainable manufacturing helps in attracting and retaining more customers for long period of time. Zhang, Zhang and Zhou, (2021) investigated that it is vital for the companies to focus on sustainable manufacturing because the customers are ready to pay additional among for green products that helps in attracting more new customers and retaining the existing ones. Nevertheless, author said that Enyoghasi and Badurdeen, (2021), in some cases sustainable manufacturing is disadvantageous for the business because selecting the eco-friendly products is more expensive in comparison to conventional goods. From this, the organizations have to increase the price of the products which adversely impacts the conversion rates and sales. For example, Zara is using renewable energy in their operation in order to produce the sustainable clothes.
Along with this, sustainable manufacturing helps in increasing the retention and engagement of the employee. On the critical note, Mukendi and et.al (2020) mentioned that it is costly and time-consuming process for every business to attract the new employees instead of retaining the existing one. So, to retain the employees for long period of time, the companies are focusing towards the sustainability from which they feel encouraged and motivated to stay for long-duration. If the employees feel motivate and encourage then they put all efforts in order to accomplish the sustainable manufacturing process within the time frame. Li, Lim and Wang, (2020) depicted that sustainable manufacturing takes more dedication and efforts because of high costs and shortage of eco-friendly raw materials. Apart from this, sustainable manufacturing is important for the organizations because it helps in increase the profits and shareholder values. The organization which is focusing towards the sustainable manufacturing in order to provide eco-friendly products to the customers and protect the environment then the shareholders are likely to make huge investment in such company that helps in increase the profitability.
Apart from this, sustainability manufacturing is significant for the organizations because it helps in improving the relations with the public. Ahmad and et.al, (2020) found that if the organization is doing the great job at sustainable manufacturing then it directly impacts its brand value and image which helps in attracting more people to make the purchase. Sustainable manufacturing is regard as one of the significant tool for improving the relationships with the public and gain the competitive advantage over the competitors. It is beneficial for the organization to use the latest technologies in order to produce the sustainable products because it helps in increase the employee recruitment and motivation. The workforces who are more conscious about protecting the environment then they feels motivate and put all the efforts in order to accomplish the desired goals and objectives.
2.3 Sustainable manufacturing technologies used by companies within fashion sector
Godina and et.al, (2020) assessed that companies are using wide range of sustainable manufacturing technologies to produce the sustainable products. It is beneficial for the organization to adopt the technologies while manufacturing the sustainable products because it helps in minimize waste, modernize operation and fully optimization of resources. The technologies are assisting the manufacturers to become more sustainable and provide eco-friendly products to the customers. Every organization has goal of minimizing the environmental damage which are caused by the industrial manufacturing and carbon footprint. Most of companies are prefer to use artificial intelligence (AI) in order to manufacture the green products. Adamkiewicz and et.al, (2022) analysed that in every business this technology has significant contribution towards the sustainable manufacturing. The fashion firms are likely to use the AI because it helps in generating, gathering, tracking and evaluating the large amount of data which helps in increasing the resilience of sustainable manufacturing. On the critical note, - Brydges, Retamal and Hanlon, (2020) stated that adoption of AI is expensive for the organization to produce the green products. It increases the maintenance cost and expenses for safeguarding the system from cyber attacks.
Furthermore, AI plays crucial role in sustainable manufacturing within the fashion companies because it helps in improving the design of the products. For example, with the help of this technology Zara can manufacture the eco-friendly clothes according to the preference and requirements of the customers. It helps in attracting more customers and become loyal towards them for long duration which positively impacts the brand image and profitability. Malek and Desai, (2020) ascertained the fact that AI also helps the business in improving the quality of sustainable products and process control. The various AI capabilities allow the manufacturers for evaluating the process of manufacturing closely which helps in determine the avenues for enhancement. AI analysis of data related to the failure of material aids in find out the cause which leads to modification in the techniques of products to eliminate the faults. Gwilt, (2020) investigated that for use of AI in sustainable manufacturing the organization is need to hire skilled and talented experts who are capable to produce green products which is costly for them.
Adopting the AI in sustainable manufacturing is useful for the organizations within the fashion sector because it helps in minimize the waste by intelligent supply chain and predictive maintenance. According to Leng and et.al, (2020), most of organizations are use AI for sustainable manufacturing because it helps in programming the material for reusing heat, minimize energy losses and recycling from continuous cooling and heating. With the help of AI organization can also implement the lean manufacturing principles which are based on the eradicating the waste. Aside from this, Internet of Things (IoT) is another technology that is widely used by the organization to produce the sustainable or green products. Adaptation of this technology is beneficial for the organizations because it helps in provide dynamic solutions that unite the technological innovation with the practices of sustainable manufacturing. The companies within the fashion sector is use IoT because it helps in offering the data analysis and real time monitoring within the sustainable manufacturing.
As critically contended by Jia and et.al, (2020), with the help of this technology, the manufacturers are easily gather and evaluating the data from several devices and sensors in real time across production lines to gain the valuable insights into the operation. These devices and sensors are assistive to the fashion company in gathering the data effectively. This data is further used in order to predict the future demand and supply of the products and the different aspects of the supply chain. In addition to this, the compliance with the use of these sensors is helpful in improving the working efficiency of the company. When the company is in position to forecast the future working then it is guidance to the company for improving their working efficiency.
In addition to this Thorisdottir and Johannsdottir, (2020) stated that materials also plays a crucial role within the Production and Manufacturing of the finished goods. This is particularly because of the reason that designing of the dress is dependent totally over the material. With the study it was seen that for making a single cotton shirt the amount of water required is similar to the quantity which person needs to drink in 2.5 years. In addition to this, when these synthetic material like nylon or the polyester is used than water consumption is less but they might emit different dangerous greenhouse gases which is harmful for the environment. Making the sustainable manufacturing the sustainable technology within the fashion and textile are used. These technologies focuses on using the reusable, regenerative, recyclable and responsibly sourced material and alternatives. This includes the using the fibres which are extracted from the agricultural waste like leaves rinds and other. When these biodegradable materials are used then the finished good is effective. Different brands like H&M and COS and others uses cupro which is made from the Cotton linter which is waste coming from the cotton plant and is produced with help of closed loop technology. In addition to this different designers stated that 37% of plant based fabric is used and they consume 30% less energy as compared to the normal products (The 4 Most Common Sustainable Practices in Fashion Manufacturing, 2023).
On the other hand Kumar and et.al (2020) argued that another major sustainable Technology for manufacturing includes the virtual dressing or the virtual fitting room. This is a latest technology which includes 3D Technology where in the person can see their look within the products they are purchasing. This is a type of Technology within which the consumer can look the way they will when they will wear the product. Thus, with help of the virtual fitting room or virtual dressing the person can view them within the new dress they are purchasing. Hence, it will help the customer to evaluate that whether the products their buy will look good on them and will fit them perfectly or not. In case they are not looking good then the consumers can also change the product before buying.
2.4 Relation between sustainable manufacturing technologies and competitive advantage
With the view of Wang and Zhang, (2020) it is evident that major impact is created by the sustainable manufacturing technology over the competitive advantage of the company. The reason behind the fact is that sustainability is the prime trend which is currently prevailing within the market. Hence, it is very necessary for the companies to effectively comply with the sustainable manufacturing technology so that the positive impact as created over the performance of the company. In support of this Ahmad and et.al, (2020) stated that reducing the resources and production cost is the major impact with a created over the performance of the company and competitive advantage. The reason beneath the fact is that when the sustainability is focused then automatically the cost of the company is reduced and as a result of this the overall production efficiency is improved. Positive impact is created over the competitive advantage as more consumers will be purchasing the product of the company and the competitors business will decline.
On the contradictory note Malek and Desai, (2020) criticized the fact that major negative impact created by the use of Sustainable manufacturing technology is that there are frequent changes within the technology. Many times it is difficult for the company to keep the track of the changing Technology. The reason behind the fact is that there are lots of new technologies coming within the working environment. It is crucial for the company to continuously research within the market for keeping the track of each and every new technology coming. Thus, as a result of this the other cost of the company increases which creates negative impact over the profitability of the business. Many times that are situation when the company implements a technology and suddenly it changes. Thus as a result of this it increases the cost for the company as the implementation includes huge amount of investment. In case the technology implemented is not prevailing anymore then it will increase the overall cost of the company. Hence, it creates negative impact over the working efficiency and the comparative advantage of the company.
Moreover Gwilt, (2020) criticized the fact that when the effective Sustainable manufacturing technology is used then it assists the company in improving their brand image and number of customers. It is particularly because of the reason that when the company will be protecting the environment and the surrounding then automatically it will enhance the brand position within the market. Thus, as a result of this the market share of the company will increase and resultantly the competitive advantage will be gained. Consumers will prefer the product and services of the company using the sustainable manufacturing technology is compared to the other companies who are not performing these technologies.
2.5 Conclusion
In the end, it is concluded that the compliance with the sustainable manufacturing technology within the fashion industry is very important. The above section highlighted that the use of Sustainable manufacturing technology assist the company in protecting the environment and producing the goods which are helpful for improvement of the company. In addition to this study also highlighted that there is different sustainable manufacturing technology is used within the fashion industry and it includes use of AI, sustainable materials, virtual fitting room and many other different kind of technologies. Along with this it was also highlighted that the compliance with sustainable manufacturing technology provides both positive and negative impacts. The positive impact includes improving the working efficiency and the number of customers. On the other hand, negative impact includes increasing cost and risk of changing technologies.
REFERENCES
Books and Journals
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- Elf, P., Werner, A. and Black, S., 2022. Advancing the circular economy through dynamic capabilities and extended customer engagement: Insights from small sustainable fashion enterprises in the UK. Business Strategy and the Environment, 31(6), pp.2682-2699.
- Goworek, H., Oxborrow, L., Claxton, S., McLaren, A., Cooper, T. and Hill, H., 2020. Managing sustainability in the fashion business: Challenges in product development for clothing longevity in the UK. Journal of Business Research, 117, pp.629-641.
- Claxton, S. and Kent, A., 2020. The management of sustainable fashion design strategies: An analysis of the designer’s role. Journal of Cleaner Production, 268, p.122112.
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