Traceability in the Apparel Supply Chain: Technology is an Enabler

By: Md Sadaqul Bari & Byoungho Ellie Jin

The apparel supply chain is extremely complex and opaque, involving many supply chain partners located in different countries. Broadly, there are six categories of supply chain partners in the apparel supply chain: raw material producers, fiber producers, spinners, fabric makers, apparel producers, and brands or retailers. There are also many other intermediary partners under these six categories such as trading entities, logistic providers, dye or chemical suppliers, fabric dyers and finishers, and so forth. Consequently, capturing and recording production and other supply chain information from each supply chain actor is enormously difficult. Recently, emerging technologies have been utilized to help trace the supply chain. 

DNA-based Technology for Faw Fiber Identification: Natural fibers are often produced in one country and subsequently processed elsewhere, which raises the risks of origin falsification. Consequently, it is difficult to identify or remove conflict cotton from the supply chain. Some DNA-based technologies mark raw fibers before they go through further processing stages.This helps to later verify if the garment was made with the type of fiber listed on the label. SigNature T DNA, developed by American biotechnology firm Applied DNA (ADNA) Sciences Inc, is such an example. SigNature T DNA is based on plant DNA that creates a unique molecular signature or barcode. During the ginning process, DNA-tagged molecules are added to the raw fibers. The finished product is then tested before being sold. This marking cannot be copied and remains bound to the fiber even after it is washed with water or exposed to solvents and alcohol; it is also resistant to heat, abrasion, and other extreme environments. This tool ensures quality, authenticity, and traceability in textiles and apparel. Many textile companies such as Himatsingka America Inc. and GHCL Limited have signed agreements with Applied DNA Sciences Inc. To know more about this technology Click Here.

Blockchain and Traceability Platforms: A blockchain is a chain of blocks that contains information. Once some data has been recorded inside a blockchain, it becomes very difficult to change it. Each block contains three elements: data, the hash (mathematical function) of the block, and the hash of the previous block. The data that is stored inside a block depends on the type of blockchain. The blockchain that is used for supply chain, for example, stores details about times and locations of supply chain processes, operations, and transactions. The second element of a block is a hash, which is comparable to fingerprint. The hash identifies a block and all of its contents, and it is always unique. Once a block is created, its hash is being calculated. Changing something inside the block will also change the hash. If the hash changes, the block will not connect to the next block, and the whole system will be invalid. The third element inside each block is the hash of the previous block. This effectively creates a chain of blocks that makes a blockchain (see Figure 1 for more information).

Figure 1. How each block connects through previous block’s hash and creates a blockchain

Source: https://www.youtube.com/watch?v=SSo_EIwHSd4&ab_channel=SimplyExplained

The characteristic of blockchain that enables secure information sharing and data record immutability made the technology an attractive solution for apparel supply chain traceability. Apparel and textile companies use this technology through blockchain-enabled digital transparency platforms such as the VeChain, TextileGenesis, and Provenance apps. Textile and apparel companies are collaborating with those solution providers. To illustrate, Lenzing, an Austrian company and a world-leading specialized fiber producer that produces a variety of sustainable and biodegradable fibers made from wood, has collaborated with TextileGenesis. The platform enables digitization and traceability of any textile asset such as fiber, yarn, fabric, or garment through what it calls “Fibercoins” or “blockchain-based digital tokens” that any textile company can directly link to an asset. For more information Click Here.

How do the companies then communicate their traceability efforts with consumers? Interactive maps, QR codes and Near Field Communication (NFC) are effective tools enabling consumers to learn about companies’ traceability efforts.

Interactive mapping is a simple tool that Nike, H&M, and many other companies utilize. On a world map, it enables consumers to view the factory’s name, location, and number of workers by moving a mouse. To learn how interactive map works Click Here.

QR Code and Near Field Communication (NFC): After capturing products and supply chain information through blockchain or other technologies, many companies are using QR codes or NFC-enabled labels to disclose that information to consumers. Consumers can scan the QR code or NFC-enabled label through their mobile phones to see the whole story of a product. Examples of brands and retailers that use QR codes or NFC-enabled labels are H&M, Martine Jarlgaard, and ASKET. For more information Click Here.

In conclusion, across the apparel industry, brands and retailers are piloting and implementing several innovative tracing technologies enabled by blockchain and DNA molecule signature. By combining the new technologies with communication through an interactive map, QR code, or NFC-enabled label, the apparel supply chain becomes traceable and transparent, which facilitates sustainability. Technologies indeed are enablers that allow the traceability and transparency issues to move forward in one of the most complex and blamed supply chains.