GM
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Blockchain in the Supply Chain

· 2 min read
Blockchain in the Supply Chain

Key Takeaways

  • 1 Blockchain enables immutable supply chain records for traceability, authenticity verification, and sustainability claims
  • 2 Implementation requires integration with ERP, PLM, and supplier systems while balancing security with usability
  • 3 EU digital product passport regulations make blockchain-based transparency increasingly mandatory, not optional
  • 4 Success demands moving beyond pilots to scalable enterprise platforms with proper supplier onboarding and change management

Executive Summary

Transparency is now a strategic imperative in fashion retail. Consumers, regulators, and investors demand proof of ethical sourcing, sustainable practices, and product authenticity. Blockchain technology is emerging as a powerful tool to deliver trust across complex global supply chains. For CTOs, the challenge is translating promising pilots into scalable enterprise platforms that deliver measurable impact.

Key Use Cases for Blockchain in Fashion

Traceability

Capability: Immutable records of raw materials, production, and logistics.
Business Impact: Enhances consumer trust and reduces reputational risk.
Leadership Implication: Requires integration with ERP, PLM, and supplier systems.

Product Authenticity

Capability: Digital certificates for luxury goods and limited editions.
Business Impact: Reduces counterfeiting, protecting brand equity.
Leadership Implication: Must balance consumer usability with security.

Sustainability Claims

Capability: Verifiable reporting on emissions, water use, and labour conditions.
Business Impact: Enables compliance with tightening regulations (e.g., EU digital product passport).
Leadership Implication: Blockchain must be aligned with corporate ESG reporting frameworks.

Business Impact Assessment

  • Risk Reduction: Mitigates reputational and compliance risks.
  • Revenue Protection: Counterfeit reduction protects margins.
  • Operational Overhead: Implementation requires investment in supplier onboarding and systems integration.

Executive Leadership Framework

  • Technology: Select open standards to avoid vendor lock-in; ensure scalability.
  • Partnerships: Collaborate with industry consortia and regulators to shape adoption.
  • Change Management: Train suppliers and internal teams on new digital workflows.

Conclusion: Blockchain as a Trust Enabler

Blockchain will not solve all transparency challenges, but it is a critical enabler of trust in global fashion supply chains. CTOs must lead beyond pilot projects, driving integration, adoption, and governance to unlock real enterprise value while reinforcing brand trust in an increasingly scrutinised industry.

Image courtesy of Unsplash

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