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Fashion Industry Would Profit from Supply Chain Traceability

A lack of traceability across fashion supply chains is as bad for business as it is for the planet, according to a new report. Think tank Planet Tracker and digital supply chain firm Segura estimate that implementing a robust traceability system can improve net profits on average by 3-7% for apparel companies. Good traceability can identify previously unknown inefficiencies, such as extra fabric ordering, consolidation of suppliers and bulk buying and reduction in late component deliveries, while also enabling greater oversight of social and environmental harms. As well as rules requiring all European firms to exercise greater due diligence over their supply chain, the fashion industry faces sector-specific regulation including an EU strategy for sustainable and circular textiles and New York’s proposed Fashion Sustainability and Social Accountability Act. “Regulation is making traceability an inevitable requirement,” said the report. “Investors should demand full traceability from companies as part of their fiduciary duties.”


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