Recycling Production Scraps: Enabling Closed-loop Supply Chains in the Fast-Fashion Industry

Background and Aim: 35% of materials in the fashion supply chain end up as waste before garments reach consumers, and 47% of all fibre entering the chain becomes waste throughout the stages of production. This chapter focuses on recycling post-production waste as a material recovery option to transition towards a closed-loop upstream supply chain. Research Design and Methods: We adopt a single case study methodology with a worldwide fast-fashion retailer. Data are collected through semi-structured interviews, reports, and archival data. Findings: Two manufacturing flows emerge from the analysis, evidencing the transition from a linear manufacturing process to a circular one. The analysis reveals the central role of the collaborative partnership with various upstream actors to facilitate the implementation of the closed-loop initiative and its enablers. Research Limitations: The research approach provides limited generalizability and adopts a single perspective in the interviews. No historical representation of the phenomenon under study is available. Theoretical Contribution: This case study contributes to the literature on closed-loop supply chains and recycling recovery options, which presents scarce empirical evidence and primarily focuses on end-of-use products in downstream supply chains. Contribution to UN SDGs: The findings of our investigation support the achievement of SDG 12 and SDG 17. The collaboration between the fashion retailer, manufacturers, third-party sorters, and recyclers exemplifies a robust multi-stakeholder partnership that enables the implementation of a responsible production practice in the fast-fashion industry. Practical impact: The study extends knowledge at the managerial level on the practical enhancement of recycling processes at the post-production phase.