Last week, Delogue hosted a webinar on why effective supply chain management is essential for staying competitive in today’s fast-evolving fashion industry. Head of ESG and communications, Anja Padget, provided an in-depth walkthrough of the supply chain landscape and highlighted the growing legislative and business demands facing fashion brands.

The webinar addressed critical issues related to the increasing need for transparency and documentation across the supply chain. As Padget pointed out, fashion brands are now required to navigate complex new regulations, such as the Digital Product Passport (DPP), Extended Producer Responsibility (EPR), and the push for supply chain transparency. The demand for brands to provide detailed documentation not just from the top suppliers, but across the entire supply chain, is now non-negotiable.

Navigating Supply Chain Demands

With the introduction of new EU legislation, brands are facing unprecedented pressure to gather documentation at every stage, from raw materials to retail. The challenges are numerous:

• Long supply chains makes it difficult for traceability.
• Changing suppliers frequently makes it hard for suppliers to commit to delivering the documentation you need as a brand.
• Brands and suppliers become reliant on each other to ensure correct documentation throughout the chain.

As Padget emphasized during the webinar, documentation has become the backbone of supply chain management in fashion. Yet, this reliance on accurate, up-to-date information creates significant business impacts, including missed deadlines, higher transportation costs, and product shortages. There are also social and environmental impacts, with issues like poor working conditions and overproduction adding to the strain on both businesses and the planet.

The Role of Certifications

One solution to manage these growing complexities is the use of certifications, which provides some level of assurance through audits. Although certifications are not flawless, Padget noted, they are currently the most reliable method for ensuring compliance across various aspects of the supply chain.

Supply Chain Management at Magasin du Nord

Interview with Anja Heyckendorf

After a detailed overview, the webinar shifted to an interview with Anja Heyckendorf, CSR specialist at Magasin du Nord, a leading Danish retailer. During the interview, Heyckendorf shared insights on how Magasin is adapting it’s supply chain management to meet these emerging challenges.

Why Supply Chain Management Matters

When asked why supply chain management should be a core focus for brands, Heyckendorf emphasized the importance of long-term partnerships with suppliers. She said: "It really, actually, becomes a real partnership [...] you can grow together, make growing plans together, which helps the factory to stay on board and helps us to reach our goals."

Magasin has embedded transparency into it’s production agreements, requiring social audits for all direct suppliers and prohibiting subcontracting without prior approval. Heyckendorf highlighted the value of trust in these relationships, saying: "We never had to snoop around our partners’ factories. There’s a matter of trust.”

Building a Resilient Supply Chain

During the interview, Heyckendorf shared how Magasin is working to centralize data and link factories directly to products, highlighting the importance of transparency in supply chain management. "We have now started to connect factories to products [...] to really see, not only which suppliers, but which factories are producing for us," she explained, emphasizing how vital it is to have a clear overview of their production network.

As the conversation turned to certifications, Heyckendorf discussed Magasin’s goal of moving toward fully certified collections. With 70% of their garments already certified, she reflected on the role certifications play: "We know that there is a chain of custody laying behind it [...] that's the only way to increase the transparency in our supply chain." 

Challenges and Future Outlook

Despite the progress made, Heyckendorf acknowledged the challenges that brands face in achieving full supply chain transparency. Political instability, supplier delays, and shifting market demands can all complicate the process. However, she remains optimistic about the future, noting the importance of long-term partnerships and data centralization.

What to takeaway from this 

Heyckendorf’s insights offer valuable lessons for fashion brands aiming to future-proof their supply chains. As brands face mounting pressure to meet regulatory demands, the importance of transparency, long-term partnerships, and clear communication cannot be overstated. While the journey toward full supply chain transparency may be turbulent, it is also an opportunity to build stronger, more resilient supply chains that benefit both businesses and their suppliers.

In conclusion, as the fashion industry continues to evolve, effective supply chain management is not just a regulatory necessity but a competitive advantage. The brands that invest in transparency today will be the ones leading the market tomorrow.

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