From sheep-sheering farms to customer closets, the garment supply chain is long, complex, and increasingly global. Consumers exposed to the ethical issues in fashion manufacturing (detailed in documentaries like The True Cost) are increasingly concerned with the origins of their garments and many fashion labels are responding by increasing their supply chain transparency.
Due to the costly and complex nature of supply chain oversight, early attempts at transparency focused on the highest risk areas in the chain and were often “top-down” from the brand across its many direct suppliers. There was no credible and cost-effective end-to-end manufacturing oversight and many companies used this as a crutch to turn a blind eye to irregularities in their supply chains.
The advent of blockchain technology is invalidating that long-used excuse by creating a credible digital footprint of every step of the supply chain. A blockchain is a digital process ledger that groups sequentially recorded transactions into immutable “blocks”. Each recorded transaction can be viewed by anyone but is completely unchangeable once entered. Each transaction is also auditable by the previous and subsequent transaction owners in the chain. Because the data is crowd-sourced from all suppliers, blockchain is often referred to as the “social network” for supply chain management. The final blockchain is a detailed and trustworthy account of an end-to-end manufacturing process. Tampering with or hiding data will be rendered impossible without widespread collusion. It is the very complexity and interconnectedness of the modern supply chain that gives blockchain its power.
Blockchain stands to revolutionize the garment industry by making supply chain oversight cost-effective, easy, and soon (hopefully) expected. It can be used to track supply chains at the company, SKU, or individual unit level. Brands can use the data internally to audit manufacturing practices and externally by giving their customers transparency into the origin of their products. With blockchain, brands can credibly showcase sustainable practices, dispute allegations, fight counterfeiting and make more informed decisions about which suppliers to trust.
Several technology companies like UK-based Provenance and NY-based Sourcemap are pioneering fashion’s blockchain revolution. Provenance helps fashion labels track raw material movement from original input sourcing to finished garment. Each supplier records its receipt and expedition of work-in-process inventory using the Provenance app, which assigns each garment a unique digital token. Locations and timestamps are tracked, along with other details like weight and transportation method. The final garment has a QR code on its clothing tag, which customers can scan to view the product’s detailed manufacturing journey on a special interface on Provenance’s website. Provenance sees its technology as the “marque of trust for the digital age”.
Sourcemap is another popular blockchain solution developed by MIT Media Lab. It allows companies to upload vendor lists and cascade Requests For Information (RFI’s) for each vendor to verify addresses and identify second and third degree suppliers. This deepens visibility beyond direct or first-degree suppliers. Sourcemap compiles the vendor data into easy-to-read “lifecycle maps” using visualization algorithms. Companies can even design built-in scorecards to evaluate and compare suppliers across the data points entered. Sourcemap is particularly adept at tracking KPI’s like carbon footprint and uses heat map visualizations to highlight the most damaging segments of supply chains.
Internally, many fashion brands are using blockchain to examine and improve their supplier networks. Brands are also leveraging blockchain to engage with customers by marrying supply chain data with engaging content on their websites. Essentially, blockchain is being used to tell product stories.
Patagonia became a pioneer of supply chain mapping when it launched its proprietary Footprint Chronicles in 2007. This interactive map shows end-to-end supplier networks (including textile mills, sewing factories, and farms) with names, addresses, manufacturing practices, and interesting videos about processes like down feather collection, organic cotton farming, and wool sourcing.
Some labels are already examining their supply chain at the individual unit level. Designer Martine Jarlgaard prints Provenance’s unique QR codes on each of her garment tags. She believes that full supply chain transparency will become a standard practice in fashion, just like the often misleading “made in” labels are today. Martine uses blockchain to engage customers by displaying supplier-generated photos and videos when QR codes are scanned. She is proud of the quality of her suppliers and wants to show off their craftsmanship and expertise.
The New Zealand brand, Icebreaker, also tags its Merino wool sweaters with QR “Baacodes” which when entered into the brand website lets consumers see the sheep station that produced the wool for their garments. They can also watch videos about sheep farming and learn about the process.
How will blockchain continue to change the fashion world?
Blockchain’s ease-of-use and cost-effectiveness suggest that adoption could take off exponentially. It could become a competitive disadvantage for brands to lack the full supply chain visibility to mitigate risks and ensure sustainability. As consumers place increasing value on product transparency, blockchain could one day make QR-code labeling ubiquitous or common enough that brands without supply chain mapping are suspected of having something to hide.
On the supplier side, blockchain will help expose those with questionable labor or environmental practices by asking for information about on-site manufacturing as well as second and third degree suppliers. Blockchain expands the scope of responsibility beyond a company’s direct suppliers by making each supplier accountable for its own suppliers. The increased transparency should incentivize improvements to labor conditions and environmental respect in garment manufacturing by introducing the real threat of losing business with large brands that cannot look the other way or be blindsided. Should Blockchain become standardized, suppliers who do not use it will be at a competitive disadvantage to strike deals with brands that practice supply chain oversight. Blockchain should improve working conditions for garment workers in the developing world, while helping brands build more efficient supply chains to offset increased production costs.
Blockchain creates not just a chain, but an entire network of responsibility by holding each party accountable for the parties it directly or indirectly engages with. Blockchain makes it easy to design, manufacture, and shop with a conscience.
Sources:
https://blog.chronicled.com/why-fashion-insiders-should-care-about-blockchain-81e29e214765
http://www.patagonia.com/footprint.html