A new method for supply chain transparency
A new method for supply chain transparency
Verified supply chain recorded on a public blockchain.
Supply chains are complex, and to be aligned with increasing demand from consumers and tougher regulations regarding transparency and sustainability, a new way to gather and verify supply-chain data is needed. Today, factories and brands rely on occasional audits and mainly unverified data to make decisions, but this method isn’t enough to solve the social and environmental challenges we are facing. In addition, there is still a lack of clarity on the true price of sustainability, which limits consumers’ ability to make sustainable decisions. Globally, the fashion industry brings about a host of sustainability issues, both socially and environmentally [1].
For decades now, workers are being underpaid while working in unsafe workplaces where their rights are frequently violated [2]. Besides perpetrating these social issues, the fashion industry is a major contributor to climate change, as its greenhouse gas emissions are estimated to be at least 4% of global emissions [3]. Since today’s methods are not solving these issues, tougher regulations are being enforced. Thus, there is a need for the industry to create a new method of how data should be gathered, verified, and shared in a transparent and trustworthy way.
gathered and verified in real-time
PaperTale’s system captures the supply chain of a product from cradle to grave, in real-time. By integrating PaperTale into existing ERP and PLM systems, factories and brands can gather and verify the flow of material, and their social and environmental data in real-time. Data is added to a public blockchain so it is extremely hard to tamper with, increasing trust. When a product is finalised, consumers can scan an NFC tag or QR-code to view the entire journey a product has travelled, which craftsmen were part of the production, and if they have been paid by law. By using IoT, we display the environmental impact of a product by showing its water usage, carbon emission, and the impacts of transportation.
When the entire product journey is visible using real-time and verified data, higher trust is created all the way from factories to consumers. This system makes it possible to start the dialogue regarding the cost of sustainability, paving the way to increase incentives that result in proper wages, contracts, and workplace safety. For the aspect of environmental sustainability, real-time data makes real-time measurement possible which will stimulate brands and factories to reduce emissions, water usage, and pollution.
This also allows parties to in real-time ensure that certifications and regulations are being followed. Finally, as brands can now verify their claims and communicate these to consumers, brand trust is increased, and consumers can make more informed decisions in an easy way.
Sources:
[1] T. S. Thorisdottir and L. Johannsdottir, “Corporate social responsibility influencing sustainability within the fashion industry. A systematic review,” Sustainability , vol. 12, no. 21, pp. 1–64, Nov. 2020, doi: 10.3390/su12219167.
[2] Clean Clothes Campaign, “Fashion’s Problems.” https://cleanclothes.org/fashions-problems (accessed Jan. 18, 2023).
[3] McKinsey & Company, “Fashion on Climate: How the Fashion Industry can urgently act to reduce its greenhouse gas emissions,” 2020. Accessed: Jan. 18, 2023. [Online]. Available: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/fashion%20on%20climate/fashion-on-climate-full-report.pdf
