The relationship between sustainable supply chains and economic success in the retail clothing industry in South Africa

Abstract

This study examined the retail clothing industry of South Africa and the associated sustainability practices, with particular focus on supply chain management. This study was conducted in order to test the relationship between sustainable supply chains and profitability in the hope that it might provide incentives for managers to adopt sustainability into their supply chain operations. The study made use of a case study analysis through a collection of quantitative and qualitative data of the sample organisations’ integrated reports and financial results to determine if there was a correlation between sustainable business practices and long-term economic profitability. Interviews were also conducted with industry participants in order to gain further insight. The study found that organisations that showed the highest investment along all three pillars of sustainability also experienced the largest and most stable economic growth within the sample. Although this could not be validated due to the limited sample size, the results did infer a positive association between sustainable supply chain management and economic success. It was also found that investing into the social capital of an organisation did have the potential to improve the economic success of an organisation within the retail clothing industry of South Africa. This study identified sustainable supply chain management frameworks that could benefit organisations within this industry financially. Further research is required into this field but it can be inferred that the incorporation of sustainable supply chain management can lend itself towards economic success within the retail clothing industry of South Africa.