As environment, social and governance (ESG) values become more critical to businesses and consumers; companies are committing to sustainability targets, with a focus on responsible sourcing of raw materials in retail.

The challenge

A&M was engaged to help our client to develop an organic cotton procurement and supply chain model with the goal that the majority of the cotton supply channels used for its brand of textile products should come from organic plantations by 2025. They faced several barriers such as securing high volumes of the raw material with increased demand, high market price and a long and complex value chain. How could our client overcome these challenges to achieve their sustainability goals?

A&M identified five key objectives to help our client achieve this goal:

1. Stabilising of premiums of organic cotton vs conventional
2. Securing organic cotton volumes
3. Improving oversight of the supply chain
4. Solving for logistic delays causing cost overruns and missed sales
5. Optimising manpower resourcing and time allocation

The solution

Following discussion with the relevant stakeholders, A&M created a custom-designed sourcing and supply chain optimisation model. The recommended model has the potential to secure 15,000+ tonnes of organic cotton by 2027 at a 15-20 percent premium, with a minimum savings of €20+ million in the next five years if cotton premiums are kept above 35 percent.

To learn more, read the full case study. Or, contact us today to find out more about how A&M can help.