The Rise of Traceability Tools in Fashion’s Global Supply Chain
Juliette Smeys (’24) | Feb 17, 2023
Over the past years, sustainability reporting standards have become normalized across many industries. Even though this has been a big adjustment for established companies and continues to be as climate regulations tighten, it has also opened a door for entrepreneurs to tap into these widely demanded reporting technologies. In the fashion industry specifically, one such technology that has seen recent success is supply chain traceability. In fact, this is an essential tool that meets consumer and shareholder expectations around manufacturing transparency and sustainability targets.
One interesting example of a company founded in 2018 is FibreTrace, a technology platform that offers real-time verification of products as they move through the global supply chain. FibreTrace works with brands, manufacturers, farmers, and raw fiber producers to connect the supply chain and provide real-time traceability. The company launched its first core product, FibreTrace Verified, in partnership with fashion brand Reformation in March 2021. Today, the technology is used by 10 brands, including Reformation and 7 For All Mankind. Regarding its functionality, the technology works through the interdependence of digital traceability and physical technology. The process starts by applying non-toxic, luminescent pigments onto raw fibers at their source. These pigments, which are indestructible throughout the processing cycle, can then be read and tracked at every stage of the supply chain through a hardware device. Each audit is recorded on the blockchain and provides AI-powered insights for businesses.
With the new regulatory frameworks in both Europe and the US, fashion’s traceability has now gone from a marketing advantage, or something that was nice to have, to a must-have for companies. This is why technology startups like FibreTrace will become increasingly relevant in offering their services, because reporting on the product’s path from start to finish will not only be appealing to shareholders as they invest, but also to customers as they become more environmentally aware of their shopping habits. Even though having all this background information readily available might seem very appealing to investors within the capability of analyzing the material, I doubt that many shopping customers would attach that much importance to having such high specificity. Going forward, I believe it may be useful for companies like FibreTrace to further develop the consumer component of their service, so brands can educate consumers and show them the work they are doing around traceability and transparency.
