Sustainability at all levels of the fashion supply chain can only be realised with a standardised set of rules and practices, a group of industry experts has conceded.
AI supply chain management platform, Inspectorio, interviewed several industry executives for its State of the Supply Chain report, authored by lead researcher Tomas Bayas Erazo, which aims to capture the dynamic and evolving landscape of the supply chain, addressing the significant influences of technological advancements, sustainability practices, regulatory changes, and consumer behaviours on how companies are managing their supply chains today.
The report draws on survey responses and
expert interviews from across industries and aims to equip industry
professionals, executives, and stakeholders with key insights to effectively
navigate the evolving landscape of supply chain management.
The survey highlights a gap in consumer
knowledge about differentiating good, better, and best practices in
sustainability and ethics. The introduction of standardised information sources
and independent audits is increasingly seen as essential to provide clear
insights.
The report points out that consumers are
often reactive rather than proactive, willing to react to negative practices
but less consistently show support for positive changes.
WRAP president and CEO Avedis Seferian says:
“Consumers are better at punishing behaviour that is bad than they are at
rewarding good ones. Furthermore, they usually have short memories and over
time, forget boycotts and return to normal behaviour. These tendencies
highlight the need for business incentives and independent information to drive
meaningful change.”
Executive vice president of supply chain at
Carter’s Karen Smith also points out that there is a disconnect between what
consumers are calling for – which is more sustainability – and what they are
actually buying.
“While consumers vocally support
sustainability, their purchasing behaviour often tells a different story. There
is a significant gap between stated intentions and actual actions, underscoring
the need for systems that enhance transparency and trust.”
The report notes that the introduction of a
European Digital Passport can play a pivotal role in informing consumers and
shaping their purchasing decisions.
However, it also notes that findings suggest
consumers are unwilling to compromise on performance and quality for the sake
of sustainability.
“This underscores the importance of these
tools not only in enhancing consumer understanding and trust but also in
ensuring that sustainable practices do not detract from product quality and
performance.”
Beyond the consumer level, supply chain
experts are urging standardisation at a regulatory level to ensure a level
playing field globally and a more impactful approach to circularity.
65% of respondents rate recent regulatory
changes as significant, affecting both operational and compliance strategies in
supply chains. But lack of regulatory harmonisation across different states and
countries when it comes to sustainability and circularity is hampering progress
toward a sustainable supply chain.
A standardised approach to areas like
corporate sourcing audits would align with the broader industry challenges and
emphasise the appetite for a cohesive regulatory framework that supports
sustainable and compliant supply chain operations.
The complexities of compliance are
exacerbated by specific regulations such as the UFLPA, which mandates adherence
to new standards and impacts sourcing strategies. Additionally, regional
legislation, including social and environmental regulations, increases
compliance pressures, underscoring the need for effective strategies to adapt
and integrate compliance functions into supply chain management.
Smith said: “The lack of consistency in
regulations across different states complicates compliance and efficiency.
There is a strong need for standardised approaches, like corporate sourcing
audits, to streamline our efforts and ensure we meet evolving standards.”
In a recent conversation with Just Style,
the new president of Euratex, Mario Jorge Machado, explained
the need for standardised systems across Europe rather than country-level
rules and labelling which he says is a “total madness” and not a common market
but the opposite of what is being aimed for.
By Just Style