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1、REVERSE LOGISTICSSupported byFOR CIRCULAR FASHION SYSTEMSAN EXPLORATION OF UNTAPPED POTENTIAL IMPRINTPublisher:Global Fashion AgendaAuthors:Holly Syrett,Felicity LammasEditor:Sergio LagunaDesigner:Florinda Pamungkas 2024 copyright Global Fashion Agenda Global Fashion Agenda gratefully acknowledges t

2、he support of Insight Partner and leader in global logistics,Maersk,who has made the publication of this report possible.Contributors The authors would like to thank the following industry experts,interviewees,and reviewers who contributed their time and expertise to this report:Anders Sejr Wggsborg

3、,Senior Customer Sustainability Partner,MaerskAndres Oliva Lozano,Senior Research Analyst,Ellen MacArthur FoundationCecilia Strmblad Brnnsten,Head of Resource Use and Circular Impact,H&M GroupClaus Mlholm Hansen,Global Marketing Manager Lifestyle&Retail,MaerskHilde van Duijn,Managing Director,Circle

4、 Economy FoundationIrene Quarshie,Senior Vice President of Global Supply Chain&Logistics,TargetJeannie Renn-Malone,Vice President,Global Sustainability,VF CorporationKaisa Tikk,Head of Commercial Sustainability,MaerskOmera Khan,former Head of Supply Chain Insights and Trends Lab,MaerskPeggy Reid,Glo

5、bal Circular Director,NikeStefan Seidel,Senior Director Corporate Sustainability,PUMA GroupZenia Inselmann,Sustainability Marketing and Development,MaerskGlobal Fashion Agenda TeamThanks to members of Global Fashion Agendas team for their contributions:Dana Schou,Sanjana Chopra,Sara Thulesius,Alice

6、Roberta Taylor,Faith Robinson,Constance Beswick,Malvika Venkatesh and Imogen Lee-Savage.DisclaimersWhile mentioned parties support the content of this publication relevant to their fields,this does not mean that their organisations or members holistically endorse this report.Moreover,the report does

7、 not constitute their explicit views and is not intended to bind them to any commitment or course of action.Reverse Logistics for Circular Fashion Systems is a Global Fashion Agenda publication,made possible with the support of Maersk,whose contributions to the reports content have been consistent w

8、ith those of other interview-based contributors.ABOUT GLOBAL FASHION AGENDAGlobal Fashion Agenda(GFA)is a non-profit organisation that fosters industry collaboration on sustainability in fashion to accelerate impact.With the vision of a net positive fashion industry,it drives action by mobilising,in

9、spiring,influencing and educating all stakeholders.The organisation has been leading the movement since 2009 and presents the renowned international forum on sustainability in fashion,Global Fashion Summit.GFA influences policy through its advocacy efforts,publishes thought leadership,implements imp

10、act programmes,presents educational guidance,and connects companies with solutions.To learn more,visit our website or contact us directly via impactglobalfashionagenda.orgABOUT MAERSKMaersk is a global integrator of logistics,offering comprehensive end-to-end logistics services,a growing suite of di

11、gital solutions and a global delivery network spread across+130 countries.By connecting and simplifying global trade,Maersk empowers its customers and broader society to create value,grow and thrive.But Maersk only succeeds when this growth is decoupled from negative impacts on individuals,communiti

12、es,the planet and resources we all share.The Maersk vision to become the Global Integrator demands an accelerated transition to decarbonise global supply chains and enables trade with less climate impact for our growing world.To learn more,visit the Maersk website or contact Maersk directly via Fash

13、ion supply chain management-Contact us|Maersk EXECUTIVE SUMMARYThat said,fashions frontrunners are already implementing resale,repair and recycling models as part of their transition to circular fashion systems as they aim to extend materials and products life cycles,maximise their value,minimise wa

14、ste and aid compliance with the multitude of forthcoming regulations around circularity as well as addressing shifting consumer sentiment.In close cooperation with logistics providers,they are implementing reverse logistics solutions that offer streamlined processes in an array of key operations,amo

15、ng them collection,sorting,transportation and storage.However,upgrading the currently fragmented solution landscape to a fully integrated one is imperative.It requires a holistic systems approach that caters to the needs of multiple actors,can reach scale and demonstrates return on investment(ROI).E

16、ffective deployment of advanced technology and deep integration of logistics partners are key to operationalisation.This report guides fashion brands,retailers,their value chain partners,and logistics providers on the essential elements necessary to leverage reverse logistics for a holistic and effe

17、ctive circular fashion system.1.NETWORK DESIGNEffective network design is fundamental for understanding where and how reverse logistics is required to support a circular fashion system.Reverse logistics involves transporting and managing the reverse flow of previously wasted materials and products f

18、rom end-users,and returning them back into the system for resale,remaking and recycling,followed by safe end-of-life disposal.It requires a fundamental rethink of how to keep resources in a closed loop and relies on local and global partnerships,interconnected networks and multidirectional flows of

19、information.2.FINANCIAL OWNERSHIPClarity on financial models in circular fashion systems is key for attracting investment,a major priority given the substantial upfront cost of implementing solutions.Furthermore,clear financial models help demonstrate the viability of business models,while enhancing

20、 collaboration,risk management,regulatory compliance and system scalability.3.BOOSTING COLLECTION VOLUMESSecuring large feedstock volumes is crucial for piloting new solutions and for commercially viable scaling.Efficient sorting,resale,repair and recycling solutions are required for both post-indus

21、trial and post-use textile waste.Reaching economies of scale in collection requires collaboration between multiple companies.Accessible collection points,coupled with effective education and incentives,are vital to foster consumer engagement and fuel demand for circular solutions.Federica Marchionni

22、CEO,Global Fashion AgendaLAYING THE FOUNDATIONS FOR REVERSE LOGISTICS THREE ESSENTIALSThe fashion industry depends on logistics partners for the smooth running of its operations,with forward logistics pivotal for efficient,cost-effective supply chain management,inventory control and speed to market.

23、However,many fashion companies have not yet tapped into the potential benefits of reverse logistics beyond the handling of customer returns.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS1233CONTENTSINTRODUCTION 1.NETWORK DESIGN ENHANCING CONNECTIVITY AND INTEGRATION O

24、pportunities Challenges Whats Needed?2.FINANCIAL OWNERSHIP ESTABLISHING FINANCIAL VIABILITYOpportunities Challenges Whats Needed?3.BOOSTING COLLECTION VOLUMES TOWARDS ACHIEVING ECONOMIES OF SCALE Opportunities Challenges Whats Needed?NEXT STEPS DEFINITIONSREFERENCES5 6 7 8 9 1010 11 12 13 13 14 15 1

25、6 1718CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS1234Logistics has always played a crucial role in the fashion industry,ensuring efficient supply chain management,inventory control and speed to market.However,new challenges are prompting fashion brands to cooperate

26、 more closely with their logistics partners to create more circular systems.Their aim is to address tightening legislation,greater scrutiny of environmental impacts,heightened risk of supply chain disruption and shifting consumer behaviour.INTRODUCTIONGlobally,over 520 regulations are pushing compan

27、ies to rethink their sourcing and design strategies,and focus on regionalisation and circularity.1 EU regulations such as the Waste Framework Directive,the Ecodesign for Sustainable Products Regulation and the EU Strategy for Sustainable and Circular Textiles aim to accelerate the transition to a ci

28、rcular economy in view of its prospective positive impact on multiple dimensions.Research indicates that shifting to circular business models(resale,rental,repair,remaking)could also generate a USD 700 billion value pool by 2030,2 with 45%of brands surveyed by the Global Fashion Agenda reporting tha

29、t they have set targets to derive at least 10%of their revenue from circular business models by 2040.3Aside from compliance concerns,companies are looking to circular systems as a means of reining in costs and finding new revenue sources.Responding to volatile raw materials prices and persistent inf

30、lation,brands are keen to lower their dependence on virgin materials and resource-intensive processes.Aiming to mitigate risk and lower transportation costs,many are seeking to streamline and localise supply chains.Forward-thinking companies are exploring growth opportunities in second-hand markets,

31、upcycling services and fashion subscriptions,while building communities of loyal,sustainability-conscious customers.A 2024 Global Fashion Agenda survey found that 65%of brands and 55%of manufacturers have set targets to design all products for the circular economy by 2040,with 36%and 79%respectively

32、 already reporting their progress.4Despite the promise of circular fashion,the industry lacks a comprehensive system to support it.Existing approaches are fragmented and often fail to deliver commercial viability.Companies need to take a holistic approach that caters to the needs and expectations of

33、 multiple actors,achieves scale and demonstrates ROI,while effectively deploying advanced technology with deeper integration of logistics partners.This report explores the logistics sectors potential role in providing reverse logistics solutions to support the fashion industrys transition to circula

34、r fashion systems.Based on interviews with industry insiders and logistics experts,and drawing on a study of exemplary practices,we outline three essentials that companies must address for a truly circular fashion system:network design,financial ownership and boosting collection volumes.CONTENTSNETW

35、ORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS1235Figure 1Effective network design is crucial for circular fashion systems,enabling the optimal flow of materials and products from end-users back into the value chain through efficient reverse logistics.However,fashion companies ra

36、rely control their entire value chain,which involves numerous stakeholders.1.NETWORK DESIGNEnhancing Connectivity and IntegrationFigure 1 below outlines in broad strokes the reverse logistics process.Today,reverse logistics in the fashion industry focuses largely on consumer returns albeit at a mass

37、ive scale,with between 40%and 60%of online purchases returned by consumers.5 A streamlined reverse logistics system that enables and potentiates the 5Rs returns,recapture,remanufacturing,reuse,and recycling relies on a strategic approach that carefully considers key tactical decisions around network

38、 design.Supported by feasibility studies,decision-makers need to address a wide spectrum of issues and plan with meticulous attention to detail,right down to warehouse design and the technological support needed.Beyond customer returns,reverse logistics should also incorporate recapturing and recycl

39、ing of post-industrial textile waste and managing unsold goods.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS1236ENVIRONMENTAL AND COST SAVINGSSmart network design encompassing effective operationalisation of reverse logistics can improve environmental impact by exten

40、ding the lifespan of materials and products and enhancing efficiency.Companies can minimise waste and extract greater value from resources,reducing reliance on virgin materials and waste disposal costs.The Circularity Gap Report indicates that 90%of materials globally are either wasted or neglected

41、for reuse.6 Greater circularity can unlock this value.Through strategised integration,logistics can present an appealing cost advantage for fashion companies currently grappling with ill fitting,piecemeal logistics solutions that often prove unviable.EFFICIENT INVENTORY MANAGEMENT AND FORECASTINGBet

42、ter network design in circular fashion systems can enhance inventory management and forecasting of material and product flows.Strategically locating infrastructure for collection,sorting and recycling,and integrating reverse logistics ensures timely collection and redistribution of items from end-us

43、ers back into the value chain.As a result,visibility of inventory and the demand forecasting accuracy greatly improve.Furthermore,the transparency afforded by an integrated logistics approach can help mitigate oversupply,a pressing problem given that roughly 30%of all clothes produced around the wor

44、ld remain unsold.7 H&M Group,for example,uses AI to reallocate products based on demand,optimise size availability and refine demand forecasts for specific stores,contributing to improved assortment planning,optimised deliveries and reduced excess stock.8 BUILDING ON EXISTING SYSTEMSCharity organisa

45、tions such as Oxfam and UNICEF have been taking back,sorting and reselling textiles for decades.Despite their longevity,these systems have operated independently of the fashion industry.As the fashion industry refines and expands its circular fashion system,theres an opportunity to build on these es

46、tablished structures,securing traceability,maintaining value in a closed-loop system and ensuring fair financial distribution.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12371.NETWORK DESIGN ENHANCING CONNECTIVITY AND INTEGRATIONOPPORTUNITIESFRAGMENTED APPROACHThe m

47、ain barrier to effective implementation of reverse logistics is usually a lack of coordination across multiple stakeholders,resulting in a fragmented approach.Given the wide variety of stakeholders from manufacturers,retailers and recyclers to logistics providers,technology vendors,regulatory bodies

48、 and other actors reverse logistics involves the management of many complex relationships and workflows.Coordinating processes and forging partnerships can prove resource-intensive and challenging.The fragmented manner in which many organisations currently operate is no longer fit for purpose as the

49、 industry transitions to genuine circularity,while emerging solutions are still in their infancy.TECHNOLOGY INTEGRATION Integrating technology,such as advanced tracking and monitoring based on RFID(radio frequency identification,that ensures seamless operation and data accuracy throughout the supply

50、 chain poses significant challenges.Particularly SMEs with more modest budgets can be overwhelmed by the investment,technical expertise and upskilling needed.Additionally,ensuring compatibility and seamless data exchange across various platforms and stakeholders in the value chain is a complex affai

51、r,typically requiring robust IT infrastructure and regular maintenance,with the integration process often disrupting existing workflows.COST IMPLICATIONSFailure to incorporate reverse logistics into the initial supply chain design can quickly drive up costs,especially given the significant upfront i

52、nvestment needed.Logistics partners need to be involved early on to avoid late-stage bottlenecks and costly postponements resulting in hasty,patchwork fixes that compromise system quality.Furthermore,inefficiencies such as multiple handling points,longer transportation routes and increased labour re

53、quirements can likewise drive up costs.That said,brands often face a dilemma:while optimising supply chains for better transportation costs typically requires locating key collection processes close to consumption points,the high labour costs in the high-wealth regions where most fashion is consumed

54、 can be prohibitive for localised implementation.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12381.NETWORK DESIGN ENHANCING CONNECTIVITY AND INTEGRATIONCHALLENGESCIRCULAR ECONOMY MINDSET Circular mindsets across the value chain are critical for effective network des

55、ign.Leadership buy-in is needed to endorse system change and allocate resources for long-term value creation.Circular practices must permeate all business functions.A cross-functional approach of this kind bridges departmental gaps,fostering collaboration and leveraging diverse skill sets to priorit

56、ise circularity in business strategy.Forward-thinking leadership balances short-term gains with long-term resilience through strategic investments and robust governance.In its Coming Full Circle report,Kering outlines its holistic approach to circularity,which is aligned with its climate and biodive

57、rsity strategies.By educating employees across its functions as well as external value chain actors,the company ensures buy-in and engagement,while adjusted performance metrics and incentives embed circularity into organisational operations.COLLABORATIVE PLANNINGPartnering closely with multiple stak

58、eholders at early strategic stages of design,planning and execution is key to co-create circular end states tailored to the envisaged business models and target markets,thus facilitating smoother implementation and long-term success.Companies should think in terms of interconnected networks that lev

59、erage local and cross-regional partnerships,with a system allowing multidirectional flows of information,goods and money as the gold standard.INNOVATION AND TESTING Innovation and continuous improvement are key to ensure that networks are designed to support circular fashion systems at scale.Investi

60、ng in research and development can drive innovation in reverse logistics processes.Rigorous piloting allows companies to test and refine strategies before full-scale implementation.Strategies can be adapted to evolving market conditions based on feedback mechanisms that continuously capture data and

61、 insights.Nike,for instance,is pursuing multiple pilot programmes to help consumers recycle and refurbish their products,such as Recycling+Donation(RAD),which recycles worn gear into Nike Grind and donates usable items through community partners,and Nike Refurbished,which extends the life of gently

62、worn or slightly imperfect footwear by refurbishing and reselling it.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12391.NETWORK DESIGN ENHANCING CONNECTIVITY AND INTEGRATIONWHATS NEEDED?Understanding financial models and ownership of assets within circular fashion sy

63、stems is essential for crafting viable business cases and attracting investment.Actors need clarity on profit generation and sharing to confidently invest in the infrastructure,technology and capabilities needed to transition to circular fashion systems.2.FINANCIAL OWNERSHIPEstablishing Financial Vi

64、abilityORCHESTRATING SOLUTIONS Clear financial models in circular fashion systems enable better orchestration of solutions,such as recycling programmes,resale platforms,repair services and product take-back schemes,by delineating roles and responsibilities,facilitating investment,enhancing collabora

65、tion,optimising resource allocation and supporting informed decision-making.Logistics providers can also better understand which stakeholders to engage with,their respective roles,value propositions and the necessary reverse logistics solutions or processes.With demand clearly defined,centralised pr

66、ocurement processes and scalable solutions and standards for efficient reverse logistics can be established,paving the way for widespread implementation across markets.COLLECTIVE FINANCINGA successful transition requires coordinated investments from all stakeholders.A collaborative approach not only

67、 spreads the financial burden but also fosters innovation and ensures the development of a robust infrastructure necessary for a more circular fashion industry.Co-financing mechanisms are already being established in the fashion industry with cross-sector actors to support GHG emission reduction eff

68、orts,for example the Renewable Energy Initiative(fashion brands collectively co-financing renewable energy infrastructure in manufacturing regions)and the Future Supplier Initiative(fashion brands collectively helping manufacturers access competitive financing for their decarbonisation programmes).S

69、erving as catalysts,such initiatives can generate momentum for further investment.NEW REVENUE STREAMS As companies transition to circular fashion systems,integrating effective reverse logistics positions brands to take advantage of opportunities across the five Rs.The global second-hand apparel mark

70、et alone is expected to nearly double by 2027,reaching USD 350 billion and outpacing the overall apparel market threefold in most regions,among them Asia,Europe,South America and Africa.9 Markets for fashion restoration,resale,repair,customisation and rental are already worth over USD 73 billion,wit

71、h companies such as Depop and Rent the Runway valued at more than USD 1 billion.10 VF Corporations The North Face Renewed,which repairs and resells hard-worn garments,and The Lauren Look platform by Ralph Lauren,a subscription apparel rental service,demonstrate how brands are exploring convenient wa

72、ys for consumers to engage in new value-added services.Clear financial models foster collaboration by defining roles,responsibilities and profit-sharing mechanisms,enhancing risk management and regulatory compliance and de-risking investments.The structure of financial models hinges on whether mater

73、ials are resold,rented,repaired,remade or recycled with varying financial implications.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12310OPPORTUNITIESOWNERSHIP MODELSDetermining the best ownership model for the given constellation and how it impacts financial perform

74、ance and consumer acceptance is crucial.Models that shift revenue streams from one-time sales to recurring payments impact how businesses recognise revenue,measure performance and interact with consumers.Financial planning and forecasting systems need to be adjusted accordingly.LONGER RETURNS ON INV

75、ESTMENTThe high investment needed in infrastructure for collecting,sorting and recycling textiles in circular systems is tied to longer ROI periods relative to traditional practices.Accordingly,it can be difficult to manage and justify,especially for SMEs.While some capabilities are already in place

76、 to support the transition,technologies for remanufacturing and recycling materials are still in the development phase and remain expensive.New systems in the pilot phase need scaling to become commercially viable(see section 3).INCONSISTENT REGULATORY FRAMEWORKSA layer of complexity is added by the

77、 need to navigate inconsistent policies and regulations across different jurisdictions governing waste handling,recycling and broader circularity practices.Compliance with policies regulating waste imports and transportation in certain countries presents barriers that hinder the safe circulation of

78、goods and,ultimately,the adoption of circular business models.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS123112.FINANCIAL OWNERSHIP ESTABLISHING FINANCIAL VIABILITYCHALLENGESINDUSTRY-WIDE DISCUSSIONS AND FRAMEWORK DEVELOPMENTThe industry needs to debate and refine

79、financial models,providing clarity on cost structures,revenue streams,ROI and profitability.This process should enable actors to make informed decisions and allocate resources effectively in support of circularity initiatives.Clear frameworks are key to enabling stakeholders to measure the financial

80、 and environmental performance of their investments,bolstering the business case and supporting sustainability reporting and compliance with legislation.The GHG Protocol Corporate Accounting and Reporting Standard,for example,serves as a framework for investments aimed at reducing greenhouse gas emi

81、ssions,ensuring accountability and efficacy in initiatives.ACCESS TO CAPITALMulti-brand collaboration arrangements and public-private partnerships with the participation of governments,brands,retailers,logistics providers and financial institutions can pool resources for greater impact,spread the fi

82、nancial burden and foster innovation.Industry alliances,joint ventures and collective action can facilitate co-investment in the commercial-scale infrastructure and capabilities needed,while ensuring clear responsibility and accountability.Clear measurement frameworks to assess the financial and env

83、ironmental returns guide decision-making and ensure increased circular outcomes.Looper Textile Co.,a joint venture by H&M Group and Remondis,is one example of a collaborative approach aiming to extend the useful life of unwanted garments through reuse and recycling.The initiative is driving innovati

84、on in textile collection,including the implementation of automated near-infrared sorting technologies.SUPPORTIVE LEGISLATION AND FINANCIAL INCENTIVESCloser collaboration with policymakers is necessary to establish supportive and consistent legislation,such as extended producer responsibility and was

85、te management regulations across the jurisdictions in which operations are located,which is for instance actioned through the Global Textiles Policy Forum.Appropriate tax incentives and subsidies for the adoption of new circular business models are likewise needed.It is important to inform the prior

86、itisation of infrastructure investment,creating a favourable environment for circular practices and encouraging long-term investments with reduced financial risks.There are many best-practice examples in other sectors,including Denmarks Dansk Retursystem,a scaled deposit system mandating financial i

87、ncentives for end-users to return used bottles and cans.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS123122.FINANCIAL OWNERSHIP ESTABLISHING FINANCIAL VIABILITYWHATS NEEDED?Primarily designed for distributing new products,current fashion logistics systems lack the in

88、frastructure needed for efficient reverse logistics for collecting and processing post-industrial and post-use textile waste at scale.Many technologies,such as automatic sorting and textile-to-textile recycling depend on the availability of commercially viable volumes of textiles.Securing substantia

89、l feedstock volumes is likewise critical for piloting and scaling new solutions.Additionally,higher volumes of suitable feedstock should lower the prices of recycled fibre and materials,enhancing competitiveness and increasing consumer acceptance.The resulting efficiency supports the business case t

90、o invest in circular infrastructure,attracts investor interest and enables the implementation of advanced technologies.3.BOOSTING COLLECTION VOLUMES Towards Achieving Economies of ScaleMULTI-STAKEHOLDER COLLABORATIONReaching economies of scale in collection requires collaboration between multiple co

91、mpanies.By creating shared collection points and leveraging their combined customer bases,companies can significantly increase the volume of returned products,making investments in sorting and processing infrastructure more viable.Such alliances can facilitate knowledge sharing and joint initiatives

92、 aimed at boosting collection efforts and implementing best practices.This harmonisation can reduce the per-unit cost of processing returned goods,improving operational efficiency and facilitating better data collection and analysis for swift and effective improvements.Pioneering brands are already

93、engaging in successful cross-sector initiatives such as the Circular Fashion Partnership and Sorting for Circularity Europe to advance textile collection and recycling solutions for both post-industrial and post-use textile waste.REGIONALISED COLLECTIONBy focusing on local hubs,companies can optimis

94、e logistics and shared transportation costs.Moreover,regionalised collection strategies are key for developing tailored approaches that cater to specific local needs and preferences,increasing community engagement and enabling quicker adaptation to regulatory changes and market demands.At the same t

95、ime,companies need to advocate for supportive legislation that promotes higher collection rates.Companies should partner with governments to establish convenient collection points funded by public grants and subsidies.As separate textile collection initiatives begin to be mandated at the municipalit

96、y level across EU countries,and with all EU member states required to implement separate collection by 2025,it is crucial to ensure that the fashion industry can benefit from the resulting waste streams.INFRASTRUCTURE AND TECHNOLOGICAL INNOVATIONSBacked by high collection volumes,there are huge oppo

97、rtunities for encouraging innovation in infrastructure and technology for circular fashion systems,in turn driving collection volumes in a virtuous cycle.Implementing smart collection systems that automate sorting and tracking can streamline operations,efficiently managing larger volumes of textiles

98、.Emerging technologies,such as RFID tracking,blockchain and artificial intelligence(AI),can enhance the efficiency and traceability of waste flows,while ensuring accountability across the supply chain.Remote tracking of collected garments provides real-time data that can be used to optimise collecti

99、on routes and improve overall efficiency.For example,trinamiXs handheld sorting technology identifies up to 15 material compositions,enhancing the accuracy and efficiency of manual sorting processes.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12313OPPORTUNITIESSTREA

100、MLINING COLLECTIONThe logistics for the efficient movement of post-industrial and post-use textile waste from multiple collection points to the points of storage,sorting and recycling can be complex and costly.It requires careful planning together with logistics partners and investment in necessary

101、capacity building such as collection points,sorting facilities and a transportation network to equal the efficiency of forward logistics networks and ensure long-term economic viability.For instance,the U.S.retailer Target optimises its transportation routing system by collecting end-of-life items d

102、uring regular store replenishment trips,minimising empty miles and enhancing logistics efficiency.ACCURATE LABELLINGInaccurate labelling of fibre and chemical composition poses challenges when scaling collection volumes for circular fashion systems.A 2020 study found that 41%11 of labels were inaccu

103、rate,emphasising the need for forthcoming green claim legislation and digital passports to ensure precise labelling.Accurate labelling is crucial for recyclers,given the complexity of material blends,which require a wide variety of recycling technologies.Concerns also centre on chemical pollution an

104、d cross-contamination from old garments that may no longer meet current restricted chemical regulations,exposing materials and products produced from recycled fibres to liability and compliance risks,among others.CONSUMER BEHAVIOURMany consumers are unaware of the environmental impact of their fashi

105、on choices or indeed the benefits of circular fashion.Others may find it inconvenient to participate in collection programmes,and some are not aware of where they can hand back their used clothing.Changing consumer behaviour will require significant investment in education and incentives.CONTENTSNET

106、WORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS123143.BOOSTING COLLECTION VOLUMES TOWARDS ACHIEVING ECONOMIES OF SCALECHALLENGESCONVENIENT COLLECTION INFRASTRUCTURE AND INCENTIVES Making collection points more convenient through accessible drop-off locations,collection bins and t

107、ake-back programmes in retail stores can enhance consumer participation.Offering incentives and responsible rewards systems for returning used clothing fosters consumer engagement and creates demand for circular solutions.Retail initiatives such as resale and re-commerce platforms further extend the

108、 life cycle of fashion items by enabling consumers to buy and sell pre-owned clothing,reducing demand for new products and diverting garments from landfills.Some fashion brands are collaborating with established B2C re-commerce platforms,such as Carhartt with Trove and Burberry with Vestiaire Collec

109、tive,while others,among them New Balance with its Reconsidered programme,are creating their own resale platforms.Some brands are facilitating B2B resale initiatives,selling samples and excess materials to internal staff and designers at a discount to avoid improper disposal and maximise resource eff

110、iciency.EDUCATION AND AWARENESS CAMPAIGNSEngaging consumers through marketing campaigns,social media and other channels is vital to changing consumer behaviour,increasing the return rates of used garments and driving demand for circular solutions and recycled materials.Clear communication about the

111、goals and next steps for collected volumes is essential when implementing initiatives like take-back and repair schemes.Public sector actors can amplify these messages and raise awareness to encourage broader participation beyond individual brand efforts.A recent campaign example is Sojos Pledge to

112、Repair,which aims to galvanise brands and citizens to promote and commit to extending the life cycle of clothes through repair and long-term care.Brands including Ganni and Ahluwalia have already signed on.TECHNOLOGICAL BLUEPRINT From the outset,companies need to define their technology blueprint to

113、 enhance their capabilities effectively.Technologies such as Fibersort,which automates sorting of mixed post-consumer textiles into up to 90 compositions,represent just one example of innovations facilitating consistent input materials in high-value textile recycling.Additionally,effective grading a

114、nd quality control systems streamline sorting in circular fashion models based on condition and material,optimising their end-use through resale,recycling or repurposing,while reducing labour-intensive inspection.High-quality sorting enhances recycling efficiency by providing pure,uncontaminated mat

115、erial streams that are easier to process and more valuable.Moreover,effective grading verifies compliance with chemical safety standards,reducing the risk of reintroducing harmful substances into the market.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS123153.BOOSTING

116、 COLLECTION VOLUMES TOWARDS ACHIEVING ECONOMIES OF SCALEWHATS NEEDED?The imperative to act has never been greater:if it continues on its current trajectory,global consumption of fashion is projected to surge by 63%by 2030,generating more waste and threatening resource availability.12 To effectively

117、leverage reverse logistics for circular systems,fashion brands,retailers and logistics providers,supported by knowledge experts and initiatives,must take the following next steps.NEXT STEPS1.ENGAGE IN COLLABORATIVE CONVERSATIONSInitiate discussions with all stakeholders to identify needs,preferences

118、 and solutions for circular fashion systems,and explore how reverse logistics can facilitate their implementation.2.TRACK PRODUCT AND MATERIAL FLOWS Enhance transparency and efficiency in reverse logistics through advanced technologies.Track current material flows to identify opportunities for extra

119、cting value from waste streams and invest in solutions that align with strategic goals.3.SECURE PARTICIPATION AND SUPPORT Launch educational campaigns and incentives to promote the participation of value chain partners and consumers in textile waste initiatives and drive demand for circular solution

120、s.4.TEST AND EVALUATE Conduct trials and pilots to assess feasibility,scalability and sustainability impacts,ensuring investments lead to tangible outcomes and long-term socio-economic viability.5.ENGAGE WITH POLICYMAKERSCollaborate with policymakers to promote supportive legislation,financial incen

121、tives and clear regulatory frameworks that reduce risks and promote long-term investments in the infrastructure needed.By taking these steps,fashion brands,retailers and logistics providers can harness the potential of reverse logistics to establish a truly holistic and highly effective circular fas

122、hion system.Through this system approach,the fashion industry has a compelling opportunity to extend the life cycle of materials and products,maximise value,minimise waste,comply with tightening legislation and demonstrate positive environmental impacts.LEARN MOREWe invite fashion brands,retailers,m

123、anufacturing companies,logistics providers,policymakers,textile recyclers,collectors and sorters to join Global Fashion Agenda and Maersk in shaping the future of circular fashion systems through reverse logistics.Sign up here to be invited to future dialogues and/or industry initiatives focused on

124、the critical role of reverse logistics.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12316CIRCULAR DESIGN PRINCIPLESDesigning products to be used more,made to be made again,and made from safe and recycled or renewable inputs.It entails aligning product design and manu

125、facturing with the underlying business model.Furthermore,design and manufacturing takes into account the disassembly at the end of the products useful life with a view to reuse,remaking,recycling and where relevant,and after maximum use and cycling safe composting of materials.13CIRCULAR BUSINESS MO

126、DELSBusiness models which keep materials and products at their highest value,including resale,repair,rental and remaking,and result in the decoupling of economic development from finite resource consumption.POST-INDUSTRIAL TEXTILE WASTE Any textile originating from an industrial process such as mill

127、ing,spinning,printing and garmenting processes that is traditionally classified as waste.This often refers to clippings from garmenting,but includes rolls of unused fabric and for instance flawed products.Also known as pre-consumer waste/materials.POST-USE TEXTILE WASTEClothing and textile products

128、or leftovers that have been used by a consumer and then discarded after use.Also known as post-consumer materials or materials generated by households.RETURN ON INVESTMENT(ROI)A ratio that measures the profitability of an investment by comparing the gain or loss to its cost.It helps assess the poten

129、tial return of investments in stocks,business ventures,etc.14 REVERSE LOGISTICSReverse logistics is the process of managing the physical flow of materials and products from end-users back to the value chain with the aim of extending their life cycle,maximising value and minimising waste.SUPPLY CHAIN

130、The system encompassing the entire process of producing and delivering a product,from sourcing raw materials to manufacturing,inventory management,distribution and delivery to the final consumer.VALUE CHAINThe value chain encompasses not only the physical supply chain but the full range of activitie

131、s involved in creating a product or service,from initial design and development through raw materials,production,marketing,after-sales service and end-of life management aimed at adding value at each step.5RS OF REVERSE LOGISTICSThe 5Rs of reverse logistics are returns,recapture,remanufacturing,reus

132、e,and recycling.These principles guide the process of managing product returns efficiently,extending product life cycles,reducing waste and minimising environmental impact.CONTENTSNETWORK DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12317DEFINITIONS1 PWC(2023).The Circular Economy T

133、ransition for Asia Pacific.Available from:https:/ Ellen MacArthur Foundation(2021).Circular business models:redefining growth for a thriving fashion industry.3 Global Fashion Agenda,United Nations Environment Programme(2024).Fashion Industry Target Consultation.4 Ibid5 Beumer Group(n.d).The Challeng

134、es of Reverse Logistics in Fashion E-Commerce.Available from:https:/ Circle Economy(2023).The Circularity Gap Report 2023.7 Fashion Revolution(2023).Fashion Transparency Index 2023.8 H&M Group(2024)Sustainability Disclosure 2023.9 ThredUp(2024).Resale report.10 Economist Impact(2022).Data point:the

135、case for circular and regenerative fashion.Available from:https:/ Fashion Revolution(2020).#whatsinmyclothes:The Truth Behind the Label.Available from:https:/www.fashionrevolution.org/whatsinmyclothes-the-truth-behind-the-label/12 Clean Clothes Campaign(n.d).Climate Change.Available from:https:/clea

136、nclothes.org/climate-change13 Ellen MacArthur Foundation(2020).Vision of a circular economy for fashion.14 Investopedia(n.d.)ROI:Return on Investment Meaning and Calculation Formulas.Available from:https:/ DESIGNFINANCIAL OWNERSHIPBOOSTING COLLECTION VOLUMESNEXT STEPS12318REFERENCESSupported byWWW.GLOBALFASHIONAGENDA.ORG