Integrating AI for Sustainable Supply Chain Optimisation in Ethical Fashion: A Case Study

Abstract

In the recent past, growth in AI has been key to providing chances to enhance supply chains, proven to be efficient economically as well as environmentally. Some of the most promising AI use cases include demand forecasting, inventory management, and supplier validation to support the brand's decision-making processes. The present study will address the state and directions of the implementation of AI technologies into the sustainable supply chains of the ethical fashion industry in order to determine more efficient and low-cost measures to minimise the deleterious effects on the environment whilst increasing the overall productivity. Thus, the research aimed to show how the concept of AI can be effective in addressing the issues in sustainable fashion brands, which include textile waste management, ethical sourcing, and increasing consumer trust in the industry by making the companies’ supply chain transparent and responsible. This research adopted a qualitative case study research approach. This research focused on a mid–sized ethical fashion brand in Europe that follows a sustainable and fair labour policy. The following methods were used in the research: A survey of the supply chain indicators, interviews with operational staff, assessment of AI tools that are used in demand forecasting and validation of materials. The study showed how the use of demand forecasting tools made using Artificial Intelligence decreased overproduction by 30%, as compared to an increase in productivity through seasonal planning and inventory control. This system also enabled the company to ensure compliance with over 95% of the suppliers. Additionally, lead time was reduced by about 18%. In addition, the system was helpful to identify and track sources of raw materials such as organic, naturally-sourced cotton and recycled fabric for assessing the suppliers’ ecological and workers’ treatment performance. This not only increased the supply chain and product identity revelation but also aided to adapt with the changing customer perception as to how they want their products to be made. The work presented in this paper shows that non-tech maintenance companies can also seize the opportunity and augment their sustainability performance with the help of the scalable AI solutions. Therefore, it is important to note that with the principles cited in this research, AI in ethical fashion is set to revolutionise the sector through enhanced, efficient supply chains, supply chain sustainability, as well as ethical fashion consumer loyalty.