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G U N I K A W A S I R , 2 0 2 1A Business Report Exploring theOpportunities in Supply chainTransparency and Traceability at theBottom-of-The-Pyramid Through RFIDTechnology

Executive summaryOver the last decade, Fast-Fashion firms have been attempting to decrease the detrimentaleffects within their supply chains; nonetheless, market research suggests that the activities intheir multi-tier SC beyond the usual tier-1 level are still difficult to sustain. The aim of this businessreport was to investigate the opportunities for Transparency in the garment supply chain as wellas establish the enablers and barriers for the implementation of RFID technology (with a specificfocus on implementation for homeworkers in India).Through the lenses of the Technology Acceptance Model (TAM) and Sustainable Supply ChainManagement theories, the viability of using RFID technology for Traceability and Transparency atthe BoP was explored. The implications of this on a Brand's Dynamic Capabilities was evaluatedto contribute to existing research on Supply Chain Management as well as provide StrategicRecommendations to the Brands in question.In the first chapter, an argument for why research into why Traceability using RFID is essential forthe industry has been presented. Following this an investigation into the current systems ofTransparency in the global Value Chain (VC) with an emphasis on outsourcing to Home-basedgarment workers (HBGWs) has been reported. Literature on Technology Acceptance, SSCM, Dynamic Capabilities have been critically reviewedto identify gaps in knowledge around both the market research and a critical evaluation andstudies into it's application. A Multi-Method approach was used for primary data collection with industry professionals andgarment workers at the BoP. An observation study was conducted into Three Brands that havemajority of their SC in India. They were evaluated on what they say about Transparency,Traceability and CSR. These brands were chosen in relation to the BoP workers and industryprofessionals interviewed in the report. This was aimed at identifying factors that might contributeto the understanding of RFID adoption. Results showed the relationship between SSCM, BoP and Dynamic capabilities of a brand andrecommendations were provided for fashion brands and manufacturing companies concerningstrategic value of implementing RFID in the supply chain for Transparency and Traceability. Total words: 15611

Table of Contents INTRODUCTION1. 1.1 Context; The Bottom-of-the pyramid and Social sustainability............................................1 1.2 Rationale: Improvement at the BoP and Radio frequency identification device (RFID)......2 1.3 Aim and Objectives..............................................................................................................3 1.4 Research design overview...................................................................................................3 1.5 Structure of the report..........................................................................................................4 2. MARKET ANALYSIS AND THEORY APPLICATION 2.1 Market Analysis....................................................................................................................5 2.2 Theoretical background.......................................................................................................11 2.3 Conclusion...........................................................................................................................14 2.4 Research Questions............................................................................................................14 3. RESEARCH DESIGN 3.1 Approach to methods and philosophy..................................................................................16 3.2 Research Methods...............................................................................................................17 3.3 Validity and reliability............................................................................................................24 3.4 Ethics....................................................................................................................................24 3.5 Limitations.............................................................................................................................244.0 – FINDINGS AND EVALUATION 4.1 Summary of Key Findings.....................................................................................................25 4.2 Analysis.................................................................................................................................345.0 BUSINESS IMPLEMENTATION 5.1 Discussion.............................................................................................................................35 5.2 Dynamic capabilities and performance.................................................................................36 5.3 Recommendations regarding Implementation of RFID technology.......................................37 5.4 Objective fulfilment................................................................................................................386.0 REFERENCING.........................................................................................................................40

List of figuresFigure 1.1 - The Indian Supply chain map......................................................................................2Figure 2.1 - The key stages of the fashion supply chain................................................................6Figure 2.2 - PESTEL Model............................................................................................................9Figure 3.1 - Research Instrument design......................................................................................20Figure 3.2 - Observation study design...........................................................................................23Figure 4.1- Formulation of codes..................................................................................................25Figure 4.2 - Enablers.....................................................................................................................26Figure 4.3 - Barriers.......................................................................................................................30Figure 4.4 - Perceived usefulness.................................................................................................33Figure 4.5 - Perceived ease of use................................................................................................33Figure 4.6 - Social Impact..............................................................................................................33

AbbreviationsBoP: Bottom of the pyramidCSR: Corporate social responsibility DC: Dynamic capabilitiesHBGW: Home based garment workersPEoU: Perceived ease of usePU: Perceived usefulnessRFID: Radio frequency identification deviceSC: Supply chainSCM: Supply chain managementSSCM: Sustainable supply chain managementTAM: Technology acceptance modelVC: Value chain

"I ENJOY DOING IT (HOME-BASED GARMENT WORK). MYSON GOES TO SCHOOL...I AM USUALLY ALONE AT HOMEBECAUSE MY HUSBAND DOESN’T COME HOME TILL LATEI CAN EARN MONEY BY STAYING HOME AND TALKING TOMY FRIENDS, SO IT’S A GOOD THING." -36 year old garment worker from Bhuj, India

INTRODUCTION1.1 Context; The Bottom-of-the pyramid and Social sustainability:Due to technological advancements and globalization of the fashion industry, there has been amajor shift of garment production to developing countries in the past few years, with brandslooking for the lowest production costs (Kotabe and Murray, 2004; Chen, 1999; Raju 2013). Thisis categorized by a shift of production from the formal to the informal sectors, where wages andworking conditions are increasingly difficult to monitor (ILO, 1996). The garment industry is the third-largest industry in the world, with global brands making hugeprofits of more than $2.5 trillion globally (Choi and Luo, 2019). Consumer demand for cheapclothing has prompted brands to look for even lower-cost labour. This low-cost labor is readilyavailable in many developing countries where garment manufacturing takes place (Vasudev,2019). Although this is beneficial for the economy of developing nations, it also leaves behindhuge amounts of environmental and social costs within the supply chain (HC, 2019). A supplychain (SC) is defined as a global network of organizations that are involved in different processesof delivering products from raw materials to ultimate consumers, through an systematic flow ofinformation and cash (Christopher, 2006). A supply chain usually involves a variety of stages likeconsumers, brands, wholesalers/distributors, manufacturers, and raw material/parts suppliers. At the bottom of the SC stages are poorly paid migrant women and men many of whom fall underthe category of sub-contracted home-based workers (Dutta, 2021). India employs at least fivemillion homeworkers in the garment and textile supply networks (Anner, 2019). Thesehomeworkers are usually women and girls who perform the ‘finishing touches’ on garments fromembroidery to inserting ties and buttons. They are paid between $0.43 and $4.32 a day, with themajority earning less than $2.00 (Karla, 2019) (See 2.2 for further developments). Around 85% ofthese home-based workers work exclusively in the supply chains of global brands from the USAand EU (ibid). The supply chain for the garment sector in India is depicted in the chart below(Figure 1.1). After the pandemic struck, garment workers from seven major manufacturing hubs inAsia, including India, lost wages amounting to as much as 6 billion in just three months (Barradas,2020). This worsened the industry’s already weak attempts to create better protections forgarment workers (Kent,2021).Home based garment workers fall into the informal sector and hence have even less social andeconomic protection as compared to the factory workers. (Carr, Chen and Tate 2000).Social sustainability has recently been a popular concept in supply chain management. (Chan,2017). The increased pressure on businesses to enhance the social standards in their supplychains, along with significant demands to avoid "economic and reputational damage" (New,2015), has pushed social sustainability to the forefront of the supply chain managementdiscussion. Transparency has arguably been considered as a supporting facet of SSCM (Carterand Rogers, 2008; Hart, 1995) and recently, this combination has sparked interest in the fashionindustry literature, where traceability and transparency, aided by digitalization, are specificallyemphasised as essential for transformation toward sustainability. (Sandvik and Stubbs, 2019;Garcia-Torres et al., 2021). The garment workers are in the last tiers of the SC; i.e. at the ‘bottomof the pyramid’ where there is not much transparency and they are “practicallyinvisible”(ILO,2017). 1.

The term “bottom of the pyramid” (BoP) appeared first in Prahalad’s seminal work profit at thebottom of the pyramid in 2006. The BoP argument pushes for the formal corporate sector ofdeveloped countries to conduct business activites in developing economies' informal markets(Khalid, 2015). It highlights an approach that involves partnering with them to create valuethrough innovating and achieving sustainable “win–win” scenarios (see 2.2 for furtherdevelopments). In this regard, recent studies have looked into the integration of BoP workers intoproductive activities (Schrader et al. 2012), emphasising the significance of SSCM in expandingthe BoP approach and the ethical research language that surrounds it(see 2.2 for furtherdevelopments).1.2 Rationale:Improvement at the BoP and Radio frequency identification device(RFID)Brands manufacture in geographically disbursed supply chains in multiple tiers and it is gettingincreasingly difficult to know where the different parts of their products originate, subsequentlyresulting in the brands losing oversight and ownership of their supply chains (Indvik, 2020). Dueto dynamically changing environments, international competition, dispersion in organisationalsources of innovation and production and the rise of consumer activism, there is a lot of pressureon brands to improve their social standards (McKinsey, 2019) not just in their own processes, butalso in the larger supply chain networks in which they participate. (Meixell and Luoma, 2015).Brands try to combat this with audits and a strict code of conduct; however, the current system ofprivate audits and certifications is at best a diagnostic tool (Terwindt, 2016). Several multinationalfashion companies, including Zara, Gap, Nike, and Marks & Spencer, have had ethical problemsin their supply chains in recent years, despite the existence of extensive codes of conduct (BBC,2011; Chamberlain, 2010). Real monitoring of working conditions and effective state inspectionsare required to improve working conditions of the labourer at the bottom of the supply chain (ibid).In recent years, technological improvements have paved the way for SSCM, allowing firms totransform their supply chains and improve manufacturing monitoring. Technologies like RFIDhave progressed to the point where it can provide more benefits for a broader range ofapplications (OECD, 2006) 70% of retailers are interested in implementing RFID by 2022(McDowell, 2021).BrandConsumersFactoryMiddle-man/sub contractorHome based garment workersFibre production & yarn spinningDownstreamUpstreamsmall/mid size factoryBuying agentSupplierFig 1.1 - The Indian Supply chain map; adopted from (Karla, 2019)2.

However, barriers still remain and exploring this technology from the perspective of home-basedgarment workers at the BoP would create a new perspective. Hence, this calls for an investigationinto its viability in the value chain for opportunities in SSCM. Thus, this study is timely and intendsto investigate the implications of this on a brand’s dynamic capabilities provide brands withstrategic recommendations. 1.3 - Aim & Objectives Aim: A business report to investigate the opportunities for a transparency in the garment supplychain and the enablers and barriers for the implementation of RFID technology.Sub aim: A specific focus on implementation for homeworkers in India.Objectives:1.Investigating the current systems applied for transparency in the global VC with a specificemphasis on outsourcing to HBGWs.2.To critically review the literature on Technology Acceptance, SSCM, dynamic capabilities toidentify gaps in knowledge around both the market research and a critical evaluation and studiesinto its application. 3.Exploring the current use, opportunities, enablers and barriers of RFID from an Industryperspective.4.With a focus on HBGWs, enablers and barriers from the perspective of them using this tech andthe people who manage the outsourcing5.To provide recommendations for global fashion brands for fashion brands and manufacturingcompanies concerning strategic value of implementing RFID in the supply chain for Transparencyand Traceability. 1.4 - Research Design Overview Through the lens of the technology acceptance model and sustainable supply chain managementtheories, the viability of using RFID technology for traceability and transparency at the BoP isexplored. The implications of this on a brand’s dynamic capabilities is evaluated to contribute toexisting research on supply chain management and provide strategic recommendations tobrands.This research is designed with an interpretive approach. This inductive qualitative research aimsto collect data using multi methods, namely: semi-structured interviews and an observation study.These two methods combined with the literature review and market analysis will triangulate thedata collected to achieve the objectives of this research. Central to this research are the HBGWsand the opportunities, enablers and barriers surrounding the implementation of RFID from theirperspective. This research is designed to be conducted in 2 phases. In the first phase RFIDprofessionals will be interviewed to give some background surrounding the use of this technologyand shed light on the key considerations. In the second phase a purposeful sample representingthree layers of the supply chain will be interviewed: The manufacturers, representatives of brandsand home-based garment workers. (See chap 3 for further information)3.

1.5 - Structure of the report Chapter 1, Introduction: This chapter provides a background on the topic as well as provides the purpose of exploring theviability of using RFID technology with an emphasis on HBGWs. It also lists the aim andobjectives of this report and gives an overview of the research design. Chapter 2, Market analysis and theory application:Before conducting primary research, the researcher conducted a market analysis and reviewedliterature on the core topics in order to find the gap in knowledge. Firstly the Macro and Microfactors were investigated following which a literature review was conducted. This helped inidentifying gaps in the research and formulating chapter 3. Research questions were designedand key drivers were mentioned.Chapter 3, Research Design:This research is designed with an interpretive approach. This inductive qualitative research aimsto collect data using multi methods, namely: semi-structured interviews and an observation study.These two methods combined with the literature review and market analysis will triangulate thedata collected to achieve the objectives of this research.Chapter 4, Findings and Evaluation:The data analysis in this chapter is presented in two phases- An inductive approach to presentthe key themes that emerge, and a cross analysis of these themes as these relate to the primaryresearch questions. The findings of the themes and codes are presented and at the end of thischapter an analysis is provided which aids in writing the business implementation.Chapter 5, Business Implementation:This chapter provides a conclusion of this research, It brands with recommendations on how tothe adoption of RFID could lead to them being more dynamically capable. It provides brands withthe details found in this. It also provides a detailed description on objective fulfilment. 4.