Traceability has become essential for fashion brands, especially in light of rapidly evolving environmental regulations. According to the State of Fashion 2024 report, 87% of fashion managers believe these regulations will impact their business this year.
Regulations regarding sustainable development are increasing and tightening around the world, especially in terms of traceability. In Europe, for example, supply chain due diligence laws are already in force in several countries, and Digital Product Passports (DDPs), which are awaiting validation, should also come into force soon.
Consumers are also demanding greater transparency in the level of information brands share. The label is at the top of the list of customers’ preferred information channels, slightly ahead of storefronts and well ahead of brand websites, media and social networks.
Supply chain traceability poses many challenges for sustainable fashion brands who want to comply with new environmental requirements as quickly as possible and win consumer trust.
Ensuring traceability of materials throughout the value chain
Currently, only 19% of companies have visibility across the fashion industry value chain, and this visibility is often partial. Many brands, especially those with ambitious sustainability goals, face significant challenges when it comes to supply chain transparency. Mapping the entire value chain of clothing and ensuring traceability of its origin is extremely complex. For a simple product like a cotton T-shirt, up to 10 organizations may be involved, from growing the cotton to retailing, including retailers.
To be able to prove the sustainability of a product, brands need to be able to trace the entire value chain of certified materials. Traditionally, however, the origin of a product is established “backward” on a declarative basis by tracing the product backwards in the supply chain from tier 1 suppliers to upstream actors such as textile mills and yarn producers. . While this is an easy way to map your supply chain, it often comes with the risk of “double or triple counting” materials and possibly misrepresenting your supply chain.
By implementing blockchain, we can ensure the traceability of products in another way, from the origin of the fiber through the various processing stages to the finished garment. This means a “fiber forward” approach to traceability is possible. A unique, non-fungible digital certificate of authenticity (a “digital token” where 1 kilogram of fiber represents an individual digital token) verifies and records the properties and provenance of sustainable fibers across all transformation stages . This data is stored securely in the cloud and cannot be modified. The platform detects and records new information at each new stage of the supply chain, tracking yarn and fabric production stages, dyeing and finishing processes, and finally garment production, and waste disposal at each stage. and incorporates yield loss.
In this way, sustainable fashion brands can assure both regulators and consumers that only genuine sustainable fibers are used.
Master the entire supply chain, including leather
The leather and footwear value chain is as fragmented and opaque as the textile value chain. The number of individual components required to manufacture one pair of shoes ranges from 10 to over 50 individual components. The challenge for brands is to manage the entire supply chain, including upstream from the tannery.
Given the huge number of components and thus the amount of information being processed, global visibility of the raw material value chain means there is no need to use multiple tools. Brands need access to supply chain information for every item in their collection, from clothing to footwear to leather goods, on a single platform to monitor material quality.
As platforms become the convergence point for all information reported by all parties involved, brands can ensure that all supply chain interactions are correctly identified and fully verified for compliance with various standards. guaranteed. To achieve this, the platform must be able to forge extensive partnerships with various stakeholders in the textile ecosystem, not just the leather and footwear ecosystem.
Validation of all these data is also an important issue. In addition to providing complete visibility, the platform must be able to ensure the authenticity of the data and guarantee that the information is true.
Ensure compliance with current and future regulations
Regarding the sustainable development of the fashion industry, we have identified approximately 30 regulations that are either already in place or in progress, particularly in Australia, Canada, the United States and Europe, of which approximately 20 have been finalized. will play a role. Regulations affecting the textile industry are not only numerous, but also increasingly targeted and strict, particularly in terms of traceability. In Europe, the implementation of the DPP requires fashion industry actors to share product data and make it accessible to authorities, partners and consumers.
In the face of multiple new regulations, fashion brands are quickly leveraging advanced technology to find the right tools to effectively manage their supply chains and reap the benefits of transparency that is now essential. must be enjoyed.
When it comes to traceability, there can be more than 300 different types of transformations in the textile value chain, so brands can ensure that every transaction in their system accurately reflects the often highly complex reality. You need to be able to rely on tools to ensure that you are doing the right thing. From the origin of textiles to retail. The tool should also allow the integration of certificates issued by independent certification bodies, as traceability cannot exist without the intervention of a trusted third party to avoid greenwashing. Additionally, the origin of materials (for Level 4 and 5 suppliers) must be verifiable across all material value chains, from recycled polyester to responsible animal fibres, sustainable cotton and man-made cellulose fibres. No.
Brands can take advantage of many advanced technologies. In particular, artificial intelligence (AI) will play a key role in ensuring that any system operations reflect real-world complexity and diverse supply chain scenarios. By creating a robust, integrated verification system for every transaction, AI automatically alerts you to the risk of non-compliance.
Real-time access to all value chain data is also an asset for brands, as is the API (Application Programming Interface) needed for standardized and automatic data exchange between fashion brands, textile suppliers and traceability platforms.
Finally, given the diversity of partners around the world (producers, suppliers, importers, distributors, etc.) and the complexity of local regulations, fashion brands need a local presence across the value chain and We need support in our country.
New challenges bring new roles for brands
The landscape of the fashion industry is changing due to evolving consumer expectations and behaviors, and increasing regulation. This poses challenges, but also opportunities for brands taking on new roles and responsibilities.
By technically demonstrating greater transparency, brands can inspire greater trust among customers, work towards safer and more dignified working conditions, contribute to a circular economy and contribute to a healthier planet. You can concretely express your company’s efforts to act for the benefit of others.
Technology is already playing a key role in enabling fashion brands to track their supply chains and make great strides in being at the forefront of sustainable development. As a result, brands can reap the real benefits of implementing a scalable, secure, and robust supply chain traceability solution.
Amit Gautam is the CEO of TextileGenesis, a Lectra company.
