Spotlight on LMICs – Retail Revolution: Cutting Carbon and Waste by Tackling Dead Stock
Dead stock in retail refers to inventory that remains unsold for an extended period, increasing the potential for financial losses, operational challenges, resource inefficiency and adverse environmental impacts. Unsold products contribute to overproduction, which in turn results in increased carbon emissions. The production of clothing, for example, is responsible for about 10% of global carbon emissions. Additionally, when dead stock ends up in landfills, it contributes to waste and pollution. Dr. (Anthony) SF. Chiu et al. aimed to identify and effectively classify potential dead stocks (PDS) and dead stocks through an enhanced inventory classification method that integrates the remaining product shelf life as an indicator for timely recognition of dead stocks. The authors take it a step further by providing guidelines in setting up decision rules needed in objectively classifying inventory based on each performance indicator through an automated algorithm with decision rules. Their proposed method provided a standardized approach resulting in notable improvements as:
- It was able to detect more than twice as much PDS that became dead stocks compared to the Fast, Slow, and Non-moving (FSN) Analysis Method.
- More than one ton of carbon emissions is prevented with lesser dead stock waste disposal (>54.9% compared to FSN).
- It is the only method that considered actual remaining life as a performance indicator – improving consistency and timeliness.
This study can move the needle towards the retail industry becoming more accountable to their contributions to waste and carbon emissions. It provides a practical method to apply the proposed methodology and guidelines in this study to retail businesses, by integrating the business’ inventory data with the proposed inventory classification algorithm.
Dr. Chiu is a part of the Sustainable Systems of Production and Consumption (SSC) Global Research Network of Future Earth. He is a specialist in the field of industrial engineering, resource efficient and cleaner production, sustainable consumption and production, and eco-industrial development. Dr. Chiu is currently a University Fellow and Professor at the Gokongwei College of Engineering, De La Salle University. He is a Philippine delegate to the United Nations ESCAP Roadmap for 2030 Agenda as well as in Rio+20 Summit, CSD19, and UNCRD 3R Forum.
Li R, Chiu ASF, and Seva R. (2023). Reducing Carbon Footprint and Promoting Resource Sustainability in the Retail Industry Through the Prevention of Dead Stocks. Cleaner and Responsible Consumption. 11: 100150 https://doi.org/10.1016/j.clrc.2023.100150.
Do you have a recent publication within the Global South that you would like spotlighted? Share your publication with Makyba Charles-Ayinde at Makyba.charles-ayinde@futureearth.org for a possible feature!
DATE
October 23, 2024AUTHOR
Makyba Charles-AyindeSHARE WITH YOUR NETWORK
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