Blockchain-Enabled Supply Chain Traceability in the Textile and Apparel Supply Chain: A Case Study of the Fiber Producer, Lenzing

Abstract

Supply chain traceability is a dominant concern for many industries, regulators, and policymakers. In the textile and apparel industries, social, environmental, and sustainability issues are frequent causes for concern, highlighting the need for effective traceability solutions. Blockchain technology has characteristics that make it attractive for supply chain traceability applications. However, the literature lacks discussion of empirical cases. We discuss current blockchain applications in the textile and apparel industries and analyze an exemplar of a prominent blockchain traceability solution adopted by a world-leading fiber producer, the Lenzing group. In this study, we identify two related objectives for traceability-product authentication and supply chain sustainability. The case study analysis has stimulated a rich discussion about the different levels of traceability achievable across the supply chain, the digital identification of products, and the extension of blockchain solutions across the whole supply network. Significant technical and business challenges exist in extending traceability to the upstream raw material supply chain and to the dispersed garment manufacturing networks downstream. More broadly, the study highlights the need to (1) clarify the objectives of a traceability initiative, and (2) scope a traceability solution appropriately, both horizontally across the supply chain and vertically with respect to the granularity of the items traced.