How Our Closed-Loop Process Works

How Our Closed-Loop Process Works

Foreword: this was an assignment written for one of my MBA courses - if the wording seems dry or clinical, that's why :) 


H clothing co, LLC creates clothing using natural fibers such as organic cotton and hemp. Products are designed and listed for sale and the rest of the forward process follows a pull methodology whereas all products are made after a customer has placed an order. After manufacturing, QC, and packaging, the products are shipped directly to the customers. In this way, storage space and supply chain waste (retailers, warehousing, etc.) are minimized. While the forward process flow is fairly straightforward, reverse logistics are a bit more complex. When h clothing co ships a final product to a customer, it backs its quality and products with a repair and replacement guarantee. What does this look like?

Figure 1

h clothing co forward and reverse logistics cycle


As shown in figure 1, When a customer is done with their product (it’s worn out, damaged, or they’ve decided they no longer have a use for it), h clothing co offers customers a free return process in which the company pays for return shipping. When the product is received, it is analyzed for damage, wear, stains, etc. When products are still in good shape, h clothing co will first attempt to repair the product for the consumer and send it back if so desired by the consumer. Otherwise, the company will repair and resell the products in its worn wear program for a much lower price than new products. When products have some tears, stains, or wear, each piece of fabric is evaluated and if possible – reused in processing (products with recycled content will be labeled to consumers as such). The remaining unused products will be either recycled for fabric scraps and used in other products or projects, or composted and used as fertilizer and soil for the garden in which the company acquires organic material with which to dye its products naturally. Through these processes, h clothing co can repair, reuse, recycle, and reincorporate products at the end of their life cycles and close the production loop – reducing waste, costs, need for additional raw materials, and adding value for stakeholders.

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