Within the fashion industry, supply chain traceability and transparency have emerged as critical issues that cry out for transformation.
Traceability in the fashion industry is the process of identifying a product's origins. Due to its complexity, traceability involves a series of interconnected stages along the supply chain, which can be challenging to conquer.
Suppliers, brands, and retailers must consider sourcing new materials, processing, production, transportation, and distribution. Brands may need help verifying the origin of a particular material or guaranteeing that it complies with labour standards or environmental impacts.
With the rise of fast fashion and the quick turnaround of trends, further complications can arise when trying to improve traceability. Short production cycles and frequent product launches make it difficult for brands to prioritise traceability initiatives.
The increased use of recycled and bio-based fibres has amplified the demand placed on sourcing raw materials, meaning brands must provide solid evidence to ensure the accuracy of product sustainability claims.
Traceability has had several drivers recently, the most prominent being regulatory compliance. Governments and regulatory bodies have imposed even stricter regulations on businesses.
The EU Cooperative Sustainability Due Diligence Directive now asks companies to identify and address potential and actual adverse human rights and environmental impacts across their operations, subsidiaries and value chains.
Alongside this, the EU deforestation-free product regulation demands that goods such as timber, leather and rubber not originate from deforestation or forest degradation areas.
The increasing awareness of product sustainability among consumers also drives the need for greater traceability, with ethical and sustainable practices becoming influential factors in consumer purchasing decisions.
Brands that demonstrate transparency and responsible sourcing practices are more likely to gain consumer trust and loyalty.
To enhance supply chain traceability, companies can succeed by working closely with suppliers to establish potential risks early on. Conducting regular audits and inspections of suppliers' facilities is also necessary to ensure the use of ethical practices.
Fashion brands should also create transparent and tamper-proof records for each stage in production, enabling real-time traceability and verifiable information for consumers.
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