Diesel Denim Supply Chain Sheng Guo 21030185 Unit leader: Toyin Laketu Supply Chain Management (Product Path) (FU010044) I, Guo Sheng, certify that this is an original piece of work, and have acknowledged all sources and citations.
CONTENT
Diesel is a globally reputed brand that has been dedicated to rebellious fashion for young generations through the forefront of denim and casual wear , founded in 1978 by Renzo Rosso.
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The Current Diesel Denim Supply Chain SWOT analysis on Supply/Demand and global impacts
Diesel Sustainability strategy & Product’s end-of-life
4 Improvement needed on the supply chain model
5 Innovations and Tools that support sustainable supply chain
6 Consumer engagement in the sustainability practice
7
Recommendation For The New Sustainable Business Model
1
The Current Diesel Denim Supply Chain
Currently Diesel DO NOT have any specific locations of supplier details published.
However, they do have policy and standards managing its supply chain.
OTB 2022 sustainability report
- All suppliers required to sign Code of Conduct
- Direct audits for third party suppliers
- Animal welfare
- Risk Assessment
- Covid-19 response
- Annual report for whole OTB Group
- Collaboration with UNIDO, ZERO, BSCI
Promote integrity page on Diesel Offical Website
2
Issues of the Supply/Demand and global impacts
S:
- Steady financial performance
- Authenticity smart tag
- Brand awareness and reputation
- Currency inflation
- Risk Managament
O:
- Collaboration with the UNDIO
- Product Circularity
- Consumer engagement
W:
- Trade mark and name protection
- Delays on the delivery
- Pollutions across the organization and suppliers
- Low transparency supply chain
T:
- Climate change, global warming
- Product counterfeiting
- Environmental law
- Huge amount of fashion waste
DIESEL CHECK AUTHENTICITY
UNDIO Collaboration
Denim scraps by UNDIO
3 Diesel Sustainability strategy & Product end-of-life
There are four pillars of Diesel’s social responsibility strategy.
- Promote Intergrity (Transparecy)
- Stand for the Planet (Emissions)
- Be the Alternative (Circularity)
- Celebrate Individuality (Diversity)
Four social responsibility goals by Diesel
In addition, the OTB Group publishes an annual sustainability report that include sustainability approaches for all the sub-brands (include Diesel).
There are three main sustainable strategies that Diesel promotes.
- Tencel ™ Lyocell REFIBRA technology with fully recycled cotton and spandex elastane mixed.
- Manufactured by Dry Indigo® Technology, with less water, chemicals and energy use in dying process.
- Start in spring/summer 2022
- Evergreen and longer-lasting denim
- 50 percent of the overall denim with “a permanent shelf life”
- Gift card buy-back and resale initiative launched in July 2021.
- Available in three Italy Diesel stores and Europe online stores.
- With traceable QR code and RFID system (RIVET)
Improvement on the supply chain model
Raising the TRANSPARENCY of supply chain is essential.
CIRCULARITY
ETHICAL
- Reveal the supplier informations and production process locations
- Provide more detail informations on responsible sourcing.
- Focus on ethical level of society wants rather than just obey the legal compliances
- Have the Diesel Second Hand Buy-Back annually, and expand the available regions
- Develop further on reusing the cutting scraps.
- Individual the annual sustainability report for Diesel only
4
Innovations and Tools that support sustainable supply chain
NFT Fashion, ex) video game collectibles, virtual stores, AR clothing
Alternative dye production without chemical, ex) fruit, veg, plant dye
QR code that give product details, ex) manufacture traceability
Alternative wash process, ex) nanobubble and ozone cleaning
5
AI Fashion, ex) AI marketing, AI styling, AI design, customized shopping
Sustainable innovation research during Fashion Enter factory visit
AI design generator
AI fitting
AI modeling
Sustainable production machine
6
Consumer engagement in the sustainability practice
- Promote customers to recycled or return their old clothing to the store (ex better offer for buy-back
- Considering biodegradable option for lazy consumers
- Educate sustainability by having QR code tags on each product to scan
- Introduce more benefit on joining the current loyalty program (Diesel House)
Customer Loyalty Program
House of DIESEL
Product traceability QR code by thecollective
Biodegradable FashionRaising the TRANSPARENCY of supply chain is essential.
By reveal the production process through QR Code Tag
The good example of VEJA’s production map, DIESEL could use the similar templet tell the consumers about their product journey map.
DIESEL annual
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Second-Hand Production Map/Stages
1. Collect past garment
2. Repair defects
3. Cleaning
4. Recondition check
5. Mark up
6. Ready to sale
- Based on limited information in OTB sustainability report 2022 and DIESEL Second Hand Program.
- All production phases details traceable through QR code and holds an individual ID.
- AI styling recommendation
Recommendation For The New Sustainable Business Model 7
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Reference
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Blomquist, C. (2022) Diesel owner aims for net zero by 2050, Sourcing Journal. Available at: https://sourcingjournal.com/denim/denim-sustainability/otb-group-diesel-sustainability-report-net-zero-carbon-emissions-377019/#! (Accessed: 04 January 2024).
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Supply Chain (no date) Available at: https://www.marthafranceswilliams.com/clothing-supply-chain (Accessed: 06 January 2024).
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