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Esquel Om Discussion on 2/3

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Submitted By prege123
Words 593
Pages 3
2. To make their supply chain more sustainable, due to the high demand for their shirts to be made from organically grown cotton, Esquel developed a project to innovate their supply chain, not just at certain points, but all the way through. To manage trade-offs between the performance of their business and the increasing demands for environmental sustainability/corporate social responsibility, Esquel aided the farms that they owned better adapt sustainable-farming techniques such as: drip irrigation which decreased water usage, planting disease-resistant cotton which was a natural form of pest/disease control, and decreased their use of pesticides. This resulted their cotton being produced much more stronger with less scrap during manufacturing of fabric, and increasing productivity. Also, Esquel employed the use of handpicking cotton rather than using chemicals to defoliate cotton leaves and thus saved the farmers from having to use more laborious measures later on to remove dirt and impurities from the chemically treated cotton. In addition, Esquel changed supplier customer relations and reinstated them as partnerships, making the farmers invest in new sustainable farming by providing them with microfinancing options via Standard Chartered Bank. Also, to decrease overstocking risks, employed a Just-In-Time method, where they only planted and picked cotton when payment was absolutely guaranteed. The company itself has improved it’s manufacturing by developing new ways to wash, gin, and spin organic cotton to retain its strong fibers and created dyes that adopted more environmentally safe chemicals thus reducing toxicity of manufactured cotton. Some more ways Esquel could have chosen to operate their sustainable supply chain would’ve been to check their carbon-footprint, being able to dictate how much energy they were using and how much greenhouse gas they

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