Sustainability expert Lindsay Dahl, currently the chief impact officer at Ritual, points out, "The fashion industry claims it's harder to track the product’s lifecycle through the supply chain, but that’s an excuse. Traceability is challenging across all sectors, and no one gets it perfectly right."
Fragmented Supply Chains
A key issue in fashion is the weak relationships between brands and suppliers. Donna Marshall, a professor of supply chain management at University College Dublin, explains, "Fashion supply chains are inherently fragile due to top-down governance, arm’s-length relationships, and underfunded procurement and sustainability."
Learning from Food, Transport, and Beauty
Food Industry Insights
The food industry excels in traceability due to consumer safety concerns. Jocelyn Wilkinson, partner and associate director at Boston Consulting Group (BCG), notes, "Food brands often integrate safety considerations early in the R&D process, unlike fashion, which focuses on design and function first."
Vertical integration is a significant factor. For instance, in the dairy industry, large processors maintain close relationships with their buyers, ensuring stringent safety standards. Wilkinson adds, "In food, there's typically less fragmentation compared to fashion."
Lessons for Fashion: Vertical Integration: Investing in suppliers, as seen with luxury brands like Prada and LVMH, can improve control and margins but is often costly. Supplier Relationships: Strengthening supplier relationships and maintaining consistency of supply can enhance traceability. R&D Focus: Incorporating safety and sustainability metrics in the early stages of product design can future-proof fashion products.
Transport Industry Insights
The automotive industry is highly regulated, with stringent safety standards requiring detailed traceability. Real-time visibility using GPS or RFID helps track components efficiently. Marshall highlights Toyota’s approach: "Toyota works closely with suppliers on product and strategy development, viewing them as partners."
This collaboration enables swift recalls, as seen with Toyota's handling of Prius hybrid vehicles. Strong supplier relationships are crucial, contrasting with the aerospace industry's weaker traceability due to cost-focused strategies.
Lessons for Fashion: Advanced Traceability Systems: Implementing real-time traceability can significantly enhance supply chain transparency. Collaborative Mindset: Viewing suppliers as collaborators rather than subordinates fosters better compliance and innovation.
Beauty and Wellness Industry Insights
Similar to fashion, the beauty industry faces complex and fragmented supply chains. However, the high volume of products allows beauty brands to set standards more effectively. The Traceability Alliance for Sustainable Cosmetics (TRASCE), comprising major brands like Esteé Lauder and L’Oréal, uses a singular platform, Transparency-One, for streamlined data sharing and analysis.
Meghan Ryan, executive director of responsible sourcing at Esteé Lauder Companies, says, "This collective effort simplifies the process for suppliers and accelerates the transition to greater transparency."
Lessons for Fashion: Early Testing: Incorporating early testing phases, as done in beauty, can help identify and mitigate supply chain risks. Cross-Industry Collaboration: A collective approach, similar to TRASCE, can drive systemic change in fashion.
Conclusion
Fashion’s complex supply chains can benefit significantly from the traceability practices of food, transport, and beauty industries. By adopting strategies such as vertical integration, advanced traceability systems, and collaborative approaches, fashion brands can enhance transparency, sustainability, and compliance. As regulations evolve and consumer demand for ethical practices grows, these lessons will be crucial in driving the industry towards a more sustainable future.