July 23, 2024

Advancing Digital Growth

Pioneering Technological Innovation

How blockchain technology is being used to trace the origin of fashion products

3 min read

By Ambud Sharma


Blockchain technology is transforming the fashion industry by tracking the origins of products with an unprecedented level of security and transparency. From the procurement of raw materials to the delivery of final goods, blockchain guarantees that every stage is traceable and verifiable by generating unchangeable and unchangeable records of each transaction.



1) Tracing of raw materials

Today’s consumers are increasingly getting curious and aware of the importance of how raw materials are sourced for their use. Brands are aware that consumers are increasingly making purchase decisions based on how ethically and sustainability the raw materials are sourced. Moreover, many certification company’s require verifiable documentation from brands on how and from where their raw materials are sourced. These systems enable precise tracing of raw material origins and quantities throughout the production process. This has resulted in brands implementing blockchain based ERPs that trace the origin (and quantities) of raw materials. This not only safeguards the integrity of the brand but also reinforces consumer trust. This allows for irrefutable evidence of the authenticity of their claims of ethical and sustainable sourcing. They help mitigate losses from sourcing shrinkage, including theft, by enhancing traceability and accountability at every stage of the supply chain.


2) Geographic origin

Using Blockchain technology, it offers brands a powerful tool to enhance transparency and traceability across supply chains. brands can verify and document exactly where the products were made -thereby mitigating the risk of suppliers engaging in cheaper subcontracting without authorization. . If the raw material sourcing is also used in tandem, it allows for greater visibility into the use of the raw material that is required for products. Moreover, integrating blockchain with raw material sourcing provides even greater visibility into the entire lifecycle of products. Brands can track the journey of raw materials used in manufacturing, ensuring they meet sustainability criteria and ethical sourcing practices. Ultimately, blockchain technology helps the brands to uphold integrity and compliance while meeting and growing consumer demand for transparency and sustainability in the products they purchase.


3) Production Transparency

When brands order products from suppliers, they can now reliably trace the manufacturing lifecycle.  By requiring suppliers to provide visibility into their manufacturing processes via blockchain, brands can effectively monitor the progress and status of production in real time. it becomes difficult for suppliers to bluff on the current status of production. Using this, brands can anticipate delays in production and can adjust their marketing activities. With this enhanced visibility, brands can anticipate potential production delays more accurately. This driven approach allows brands to adjust their marketing activities, manage customer’s expectations, and optimise inventory planning accordingly.


4) Multi-vendor sourcing

Using multi node blockchain registers enable brands to concurrently trace the origin of not only raw material but also the manufacturing cycles of same SKUs from multiple vendors. This approach leverages the decentralized nature of blockchain, where each node maintains an identical copy of the ledger, ensuring transparency and reliability of data. With multi-instance blockchain registers, brands can securely verify the entire journey of raw materials from extraction or cultivation through various stages of production across different suppliers. This capability provides a clear and immutable record of each SKU’s manufacturing process, regardless of the number of vendors involved. Moreover, this system enhances accountability and reduces the risk of substitute or substandard products entering the supply chain. Brands can easily identify and address issues such as variations in production timelines, quality control lapses, or ethical sourcing concerns across their vendor network. By integrating multi-instance blockchain registers into their supply chain management, brands not only strengthen their ability to track and trace products but also improve overall operational efficiency and consumer trust. This technology empowers brands to uphold Severe standards while meeting regulatory requirements and customer expectations for transparency and authenticity in product origins.


(The author is Ambud Sharma, CEO & Owner at Escaro Royale, and the views expressed in this article are his own)


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