Life-Cycle Costing
Life-Cycle Costing (LCC) is an accounting method that assesses the total cost of a product throughout its entire life cycle, from the extraction of raw materials to its end-of-life disposal. In the context of the fashion industry, LCC provides businesses with a comprehensive view of the financial and environmental impacts of a product over time. This enables better decision-making around production, pricing, and sustainability. By understanding the full cost implications of a product, businesses are able to create durable, high-quality garments that align with sustainability goals and meet the growing demand for responsibly sourced products. LCC promotes transparency, helping businesses to consider both economic and environmental factors, guiding them toward more sustainable practices.
Case Studies
Rapanui Clothing
Rapanui Clothing is a small UK-based fashion brand focused on sustainability and transparency in its entire supply chain. They utilize Life-Cycle Costing (LCC) to calculate the environmental impact of their garments from the sourcing of organic cotton to recycling programs for used products. Their unique “traceability map” allows consumers to follow the production journey, promoting transparency and sustainability at every stage.
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Thought Clothing
Thought Clothing is a small fashion brand that applies Life-Cycle Costing (LCC) by using eco-friendly materials like organic cotton, bamboo, and recycled polyester. Their LCC approach focuses on creating long-lasting, high-quality garments with minimal environmental impact. Thought Clothing actively promotes transparency, allowing consumers to understand the complete lifecycle of the products they purchase.
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Organic Basics
Organic Basics, a Danish fashion company, integrates LCC principles by designing durable, long-lasting clothing from organic materials. Their commitment to sustainability goes beyond production, as they encourage customers to purchase fewer, better products to extend the lifecycle of garments. The brand’s Life-Cycle Costing system also includes carbon offset programs and water-saving initiatives to ensure minimal environmental impact.
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Elvis & Kresse
Elvis & Kresse is a sustainable accessories brand that uses Life-Cycle Costing (LCC) principles by repurposing waste materials into luxury products. Their primary material is decommissioned fire hoses, which are diverted from landfills. By tracking the environmental and financial costs throughout their product’s lifecycle, Elvis & Kresse ensures that each product maintains a minimal carbon footprint while creating social value through various charitable contributions.
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References
- Bocken, N. M. P., & Ciarapica, F. E. (2016). The effect of business model innovation for resource efficiency on competitive advantage: A case study in the fashion industry. Journal of Cleaner Production, 135, 1069-1083.
- De Brito, M. P., & Dekker, R. (2003). A framework for sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management, 33(5), 427-442.
- Fletcher, K. (2014). Sustainable fashion and textiles: Design journeys. Routledge.
- Hutton, R. B., & Wilkie, W. L. (1980). Life cycle cost: A new form of consumer information. Journal of Consumer Research, 6(4), 349-360.
- Laitala, K., Boks, C., & Klepp, I. G. (2015). Making clothing last: A design approach for reducing the environmental impacts. International Journal of Design, 9(2), 93-107.
- Shen, L., & Li, X. (2016). Life cycle assessment of clothing: Sensitivity analysis of recycled polyester and wool blends. International Journal of Clothing Science and Technology, 28(6), 842-860.
- Tukker, A., & Jansen, B. (2006). Environmental impacts of products: A detailed review of studies. Journal of Industrial Ecology, 10(3), 159-182.