ABSTRACT

The textile industry in Indonesia is one of the most influential sectors for Indonesia's
GDP. The achievement can be overlooked from the size of the proportion in employment,
which is up to 26%. Besides, it also can be seen in the export value in 2017, which reached
12.4 billion USD, and an annual increase of 5.7% from 2018-2024 (Ishaque, 2019). This
significant increase in fashion trends has also greatly influenced the increase in textile waste
in Indonesia. Textile waste can be defined as material that cannot be reused for its original
purpose by its owner. Indonesia, the largest textile importer in 2018, only had a textile
recycling rate of 12% or about 0.3 million tons of a total of 2.3 million tons of textile waste
(Ishaque, 2019). Based on the analysis of problems and potentials, a reverse supply chain
system concept was designed, which is contained in an innovation called SLO.BOX to
increase the recycling rate of textile waste in Indonesia. Simply put, the SLO.BOX
innovation concept is an intelligent reverse vending machine (VM) innovation that can make
it easier for people to donate and buy used clothes. Several SLO.BOX features can be used to
maximize the potential, such as automatic machine folding, Image processing, and IoT. In
designing the SLO.BOX system, there are three main stages: the information system's design,
the physical prototype, and the SLO.BOX application. This design is carried out by collecting
information through a systematic literature study method—furthermore, therefore are also
SLO.BOX business model design and economic value calculation stages. The business model
is designed using the Business Model Canvas to find the most efficient way to run the reverse
supply chain. Both the business model and the economic value calculation are carried out to
determine the feasibility of implementing the innovation. Based on the calculation of the
economic value of SLO.BOX innovation is efficient enough from an annual profit that can
reach 4,232 trillion. In addition to the economic value, such as reduced costs for handling
environmental and health impacts (environmental & health costs).

Keywords: Fast Fashion, Textile Waste, Textile Industry, Reverse Supply Chain, Smart
Vending Machine, Textile Waste, Textile Industry, Reverse Supply Chain