October 27, 2017

Image: Reverse Resources

A report published by Reverse Resources, winner of the H&M Foundation Global Change Award, revealed a major business opportunity for the recycling of textile waste from garment factories. The research found that in fabric and garment production an average of 25% of resources is wasted. In some cases, it was even as high as 47%. Reverse Resources stated that this inefficiency is caused by business interests between manufacturers and brands. The current linear pricing schemes adopted by brands unwittingly provide an incentive for factories to withhold data about leftovers. These pricing schemes ‘build in’ an extra margin for factories to sell leftover into local aftermarkets. Unsold scraps are incinerated or dumped, which contributes towards environmental as well as economic inefficiency problems.

Reverse Resources suggests adopting a new pricing scheme in which the prices for leftovers are linked with the prices of virgin fabrics. This would not only give manufacturers an economic incentive to be more transparent about their waste, but it would also reduce the use of new fabrics in production by a total of 3% via the integration of leftover fabrics in production.

To enable this process, Reverse Resources is developing software for garment factories and their buyers to create visibility of waste resources available from production and to enable remanufacturing. The company is currently testing its software with four major suppliers in Dhaka, Bangladesh.

Read the full report by Reverse Resources here: http://reverseresources.net/about/white-paper

Tags: leftover, manufacture, produce waste, reverse resources, supply chain.