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How well do you really know your suppliers?

Written by Delogue | Nov 1, 2024 9:58:05 AM

In today’s fast-changing fashion industry, understanding supply chain complexities is more critical than ever. Delogue recently hosted a webinar led by ESG expert and Head of Communications, Anja Padget, which explored the question: Do you really know your suppliers? The session provided a look into the foundational challenges brands face in achieving supply chain transparency - a necessity as both regulations and consumer expectations heighten.

 

 

Traceability vs. Transparency

 

Padget introduced two essential concepts that are shaping the future of sustainable fashion: traceability and transparency. Essentially, traceability involves tracking the journey of a product from its origin, through each stage of the supply chain, right down to raw material sourcing. It requires a detailed view into each link in the chain - ensuring that companies know not only their direct suppliers but also the suppliers who serve those suppliers.

 

In contrast, transparency is about communicating this supply chain information openly and responsibly. Padget emphasized that transparency means “giving information to end consumers, to B2B, wherever we want to put our information out and be transparent as a company.”

 

While traceability provides the data, transparency is the commitment to share it - offering stakeholders, from business partners to end consumers, insight into the brand’s sourcing practices and product journey.

 

 

The "Trickle-Down Effect" and Data Demands

 

She further emphasized how visibility throughout the supply chain is increasingly complex but necessary. “The necessity for data, the necessity for information becomes more and more extensive,” she observed, pointing to demands from “big e-commerce platforms, a lot of key accounts...who then ask for data, who then ask for data, who then ask for data.”

 

This “trickle-down effect” illustrates the growing demand for supply chain information across every tier, which brands and suppliers alike must now address.

 

 

Do You Really Know Your Suppliers?

Interview with Roman Houlbreque 

 

With rising legislative demands and evolving consumer expectations, supply chain transparency has shifted from a nice-to-have to an essential component for brands looking to stay competitive. Director of Partnerships at Retraced, Roman Houlbreque, highlighted how understanding supplier relationships at every level is now vital for meeting these new standards and building trust in the fashion industry.

 

 

The Difference

 

Houlbreque states that according to him, traceability and transparency are distinct but interconnected goals. “Traceability leads to transparency in my opinion,” He adds, “It’s also creating this transparency for oneself and for business partners,” illustrating that visibility across the entire supply chain is a growing need for both compliance and consumer trust.

 

Retraced’s approach simplifies this visibility by providing brands with a central data hub. This enables companies to monitor supplier practices and stay on top of certifications, all while preparing for evolving regulatory demands.

 

 

How Technology Can Make or Break Compliance

 

With an influx of new legislation aimed at sustainable production, Houlbreque acknowledges the overwhelming task brands face in staying compliant. This so-called “tsunami of legislation” requires brands to gather, verify, and report data across all supply chain tiers. Houlbreque remarks, “It’s all around standardization... so we start talking the same language,” emphasizing that the future will demand seamless communication across brands, suppliers, and even technology platforms.

 

Retraced’s digital tools help brands meet these standards without drowning in manual data collection. By automating parts of the data-gathering process, the platform helps brands stay agile and compliant.

 

 

Reimagining Supplier Relationships for Long-Term Success

 

A key takeaway from Houlbreque’s talk is the importance of redefining the brand-supplier relationship.

 

Unlike the traditional approach, where brands worked in isolation, today’s compliance challenges mean brands and suppliers must work together to set up long-term processes for data-sharing and goal alignment.

 

For brands, this means selecting partners who not only meet standards but are ready to adapt alongside them as demands evolve. Retraced supports these partnerships by helping brands establish a “data foundation,” where supplier data is housed securely and shared seamlessly across the network.

 

 

Preparing for a Transparent Future

 

Houlbreque is optimistic about the industry’s future, envisioning a more connected supply chain where different traceability platforms can share data freely, enabling true transparency. “Data governance needs to be set globally... so that we have the right foundation to be interoperable,” he explains. This vision of harmonized global data standards would ultimately make it easier for brands to stay compliant, regardless of the platform they use.

 

With advancements in AI and interoperability, Houlbreque believes that “standardization will simplify data-sharing,” allowing brands to focus on positive environmental and social impacts rather than data collection alone.


 

 

Did you miss the webinar on Why Supply Chain Management is Key in Staying Competitive? Don't worry, we recorded it for you!