Co-ordinating Sustainable Cotton Chains for the Mass Market

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maria goldbach, stefan seuring and simone back Conventional cotton chain Sustainable cotton chain: initial phase Sustainable cotton chain: advanced phase Bilateral, operational Chain-wide, global Bilateral, operational Chain-wide, global Bilateral, operational Chain-wide, global Fibre production OTTO Price Negotiation Price Negotiation Price Spinning Command and control Command and control OTTO Price Negotiation None Command and control Negotiation Price Negotiation Command and control Fabric production Dyeing/ finishing Clothing production Negotiation Price Negotiation Negotiation Price Negotiation Price OTTO Co-ordination scenario Market Patriarchal co-operation Co-operative market Table 2 co-ordination mechanisms in the conventional and sustainable cotton chains at otto Conclusion and research perspectives The cotton supply chain is dispersed around the globe. This makes the move toward sustainability in such supply chains a complex task. Sustainability management can therefore be understood as an implementing measure that ensure that suppliers meet environmental and social standards, while ensuring that the supply chain remains competitive. This requires increased co-operation among all partners involved in the chain. The findings from the OTTO case offer insights on how a combination of market and co-operation seems to be the most promising means of further improving sustainable chains and allowing their survival in the marketplace (Goldbach 2003; Kogg 2003). As the market and price are initially not available as co-ordination mechanisms for sustainable cotton chains, co-ordination in the initial phase is based on negotiation and even command and control. Once the chain has been set up, market elements may be reintroduced into the co-ordination scenario allowing for the necessary competition and meeting of market demands. 76 GMI 43 Autumn 2003
co-ordinating sustainable cotton chains for the mass market The case provides evidence that sustainability in a supply chain cannot be viewed merely as a technical matter, where products’ life-cycles are analysed and technical measures are subsequently implemented to ensure that related goals are met. On the contrary, the management of products’ environmental life-cycle within supply chains (Seuring 2004a, 2004b) are first of all inter-organisational concepts, where much effort has to be placed. The overarching research question—how to manage the transition of supply chains from conventional product to sustainable products and production processes—will need further investigation. References Arrow, K.J. (1991) ‘The Economics of Agency’, in J.W. Pratt and R.J. Zeckhauser (eds.), Principals and Agents: The Structure of Business (Boston, MA: Harvard Business School Press): 37-51. Abernathy, F.H., J.T. Dunlop, J.H. Hammond and D. Weil (1999) A Stitch in Time. Retailing and the Transformation of Manufacturing: Lessons from the Apparel and Textile Industry (New York/Oxford, UK: Oxford University Press). Chaudhry, M.R. (1996) ‘Cost of Producing a Kilogram of Cotton’, Proceedings from the 23rd International Cotton Conference, Bremen, Germany. Enquete-Kommission Schutz des Menschen und der Umwelt (1994) ‘Die Industriegesellschaft gestalten: Perspektiven für einen nachhaltigen Umgang mit Stoff- und Materialströmen’ (‘Designing Industrial Society: Perspectives for Sustainably Managing Substance and Material Flows’), Economica (Bonn): 101-22. Goldbach, M. (2001) ‘Managing the Costs of Greening: A Supply Chain Perspective’, The 2001 Business Strategy and the Environment Conference, University of Leeds, UK, 10–11 September 2001: 109-18. —— (2002) ‘Organizational Settings in Supply Chain Costing’, in S. Seuring and M. Goldbach (eds.), Cost Management in Supply Chains (Heidelberg, Germany: Physica): 89-108. —— (2003) ‘Coordinating Interaction in Supply Chains: The Example of Greening Textile Chains’, in S. Seuring, M. Müller, M. Goldbach and U. Schneidewind (eds.), Strategy and Organization in Supply Chains (Heidelberg, Germany: Physica): 47-63. Handfield, R.B., and E.L. Nichols, Jr (1999) Introduction to Supply Chain Management (Upper Saddle River, NJ: Prentice Hall). Kogg, B. (2003) ‘Power and Incentives in Environmental Supply Chain Management’, in S. Seuring, M. Müller, M. Goldbach and U. Schneidewind (eds.), Strategy and Organization in Supply Chains (Heidelberg, Germany: Physica): 47-63. Meyer, A. (2001) ‘What’s In It For The Customer? Successfully Marketing Green Clothes’, Business Strategy and the Environment 10.5: 317-30. —— and P. Hohmann (2000) ‘Other Thoughts; Other Results? Remei’s bioRe Organic Cotton on its Way to the Mass Market’, Greener Management International 31 (Autumn 2000): 59-70. Myers, D. (1999) ‘The Problems with Conventional Cotton’, in D. Myers and S. Stolton (eds.), Organic Cotton: From Field to Final Product (London: Intermediate Technology Publications): 9-20. —— and S. Stolton (eds.) (1999) Organic Cotton: From Field to Final Product (London: Intermediate Technology Publications). Pratt, J.W., and R.J. Zeckhauser (1991) ‘Principals and Agents: An Overview’, in J.W. Pratt and R.J. Zeckhauser (eds.), Principals and Agents: The Structure of Business (Boston, MA: Harvard Business School Press). Seuring, S. (2001a): Green Supply Chain Costing: Joint Cost Management in the Polyester Linings Supply Chain’, Greener Management International 33 (Spring 2001): 71-80. —— (2001b) ‘A Framework for Green Supply Chain Costing: A Fashion Industry Example’, in J. Sarkis (ed.), Greener Manufacturing and Operations: From Design to Delivery and Back (Sheffield, UK: Greenleaf Publishing): 150-60. —— (2004a) ‘Integrated Chain Management and Supply Chain Management: Comparative Analysis and Illustrative Cases’, Journal of Cleaner Production 12.8–10: 1,059-71. —— (2004b) ‘Industrial Ecology, Life-Cycles, Supply Chains: Differences and Interrelations’, Business Strategy and the Environment 13.5: 306-19. Skjoett-Larsen, T. (1999) ‘Supply Chain Management: A New Challenge for Researchers and Managers in Logistics’, International Journal of Logistics Management 10.2: 41-53. GMI 43 Autumn 2003 77
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