Traceability has become an imperative for fashion brands, particularly in light of rapidly changing environmental regulations. According to the State of Fashion 2024 report, 87% of fashion executives believe these regulations will impact their business this year.

Sustainable development regulations are multiplying and tightening around the world, particularly in terms of traceability. In Europe, for example, laws on duty of care in the supply chain are already in force in several countries, and the Digital Product Passport (DDP), awaiting validation, should soon come into force.

Consumers are also demanding greater transparency in the level of information shared by brands. The brand comes at the top of the information channels favored by customers, just ahead of the point of sale, and far ahead of the brand’s website, the media and social networks.

For sustainable fashion brands that want to comply with new environmental requirements as quickly as possible and gain consumer trust, supply chain traceability poses many challenges.

Ensure the traceability of materials throughout the value chain

Today, only 19% of companies in the fashion sector have visibility into their value chain, and this visibility is often partial. Many brands, especially those with ambitious sustainability goals, face a real challenge when it comes to supply chain transparency. Mapping the entire value chain of a garment and ensuring traceability of its origin is extremely complex. For a product as simple as a cotton T-shirt, up to 10 organizations can be involved, from cotton farming to retail to merchants.

To be able to prove the sustainability of their products, brands must be able to trace the entire value chain of certified materials. Traditionally, however, product origin is established “backwards” on a declarative basis, following the upstream product supply chain from Tier 1 suppliers to upstream players such as fabric mills. or yarn producers. This is a quick way to map the supply chain, but often carries the risk of “double or triple” counting of materials and, sometimes, misrepresentations of the supply chain.

By deploying blockchain, it is possible to ensure the traceability of products in a different way, from the origin of the fiber to the finished garment through the different stages of transformation, i.e. “upstream of the fiber” traceability approach. Unique, non-interchangeable digital certificates of authenticity (“digital tokens” where a kilogram of fiber represents a distinct digital token) validate and record the properties and provenance of sustainable fibers at all stages of processing. This data is stored securely in the cloud, where it cannot be modified. The platform detects and records new information at each new stage of the supply chain, tracking the production phases of yarns and fabrics, the dyeing and finishing processes, and finally the production of garments, integrating waste and loss of yield at each stage.

In this way, sustainable fashion brands can assure both regulatory authorities and consumers that only authentic and sustainable fibers are used.

Master the entire supply chain, including leather

The leather and footwear value chains are as fragmented and opaque as those of textiles. The number of individual components required to make a single pair of shoes can vary from 10 to over 50 separate components. For brands, the challenge is to control their entire supply chains, including upstream of the tanneries.

Given the number of components, and therefore the quantity of information to be processed, having global visibility over the raw materials value chain means that you do not have to resort to multiple tools. To control the quality of their materials, brands need to be able to access supply chain information for all items in their collections, from clothing to shoes to leather goods, on a single platform.

The more a platform becomes the convergence point of all the information reported by all the actors involved, the more it guarantees brands that all interactions in the supply chain are correctly identified, and that compliance with the various standards is perfectly verified. To achieve this, platforms must be able to establish extensive partnerships with the various players in the textile ecosystem, as well as with those in the leather and footwear ecosystems.

Verifying all this data is also a key issue. In addition to providing complete visibility, platforms must be able to ensure data reliability and guarantee the veracity of information.

Ensure compliance with current and future regulations

In terms of sustainable development in the fashion industry, there are already around thirty regulations in place or in preparation, applicable in particular in Australia, Canada, the United States and Europe, around twenty of which will play a determining role. The 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 should oblige players in the fashion industry to share their product data and facilitate access to authorities, partners and consumers.

Faced with multiple new regulations, fashion brands must quickly exploit advanced technologies and find the right tools to effectively manage their supply chain, and thus benefit from the transparency that is now essential.

In terms of traceability, brands must be able to rely on a tool guaranteeing that each transaction in the system faithfully reflects an often very complex reality, since there can be more than 300 distinct types of transformation in the textile value chain, from origin of retail fiber. And as traceability cannot exist without the intervention of trusted third parties to avoid greenwashing, this tool must also allow the integration of certifications issued by independent certification bodies. The origin of materials (for Tier 4 and 5 suppliers) must also be verifiable across all material value chains, from recycled polyester and responsible animal fibers to sustainable cotton and synthetic cellulose fibers.

Brands can leverage a number of advanced technologies. In particular, artificial intelligence (AI) can play a crucial role in ensuring that every operation in the system reflects real-world complexities and diverse supply chain scenarios. By creating a robust, integrated verification system for each transaction, AI can automatically alert you to any risks of non-compliance.

Real-time access to all data in the value chain is also an asset for brands, as are the APIs (Application Programming Interfaces) necessary for standardized and automated data exchanges between fashion brands, textile suppliers and the traceability platform.

Finally, given the diversity of partners (producers, suppliers, importers, distributors, etc.) around the world and the complexity of local regulations, fashion brands need to be supported in all countries, with a local presence. throughout the value chain.

New challenges bring new roles for brands

The evolution of consumer expectations and behaviors, as well as the proliferation of regulations, are changing the situation for fashion players. This is not only a source of challenges, but also of opportunities for brands, which have new roles and responsibilities.

By technically demonstrating greater transparency, brands can inspire greater trust in their customers and deliver on their commitments to working for safer and more dignified working conditions, contributing to the circular economy and taking action for a planet healthier.

Technology is already playing a key role in enabling fashion brands to make huge strides in tracking their supply chains and positioning themselves at the forefront of sustainability. As a result, brands can benefit from real benefits in implementing a scalable, secure and robust supply chain traceability solution.

Amit Gautam is CEO of TextileGenesis, a Lectra company.