Data: Suppliers Ask Where’s Our Share in the Profit?

Discover the traceability and data issues faced by suppliers and learn what actions can be taken to overcome these challenges.

The Fashion Producer Collective is a collection of producer-led projects representing a range of perspectives from individuals within apparel supply chains.

The Collective meets regularly in closed-door sessions to discuss specific challenges and offer insight and support. The following is a summary of the key points raised in a session on traceability and data equity in 2024. The points below are based on the insights written by Fashion Producer Collective co-founder, Kim van der Weerd.

“Right now, for the most part, the platforms own the data and that’s just not appropriate. We should own our data. Where’s our share in the profit?”

Key takeaways:


1. Diverse traceability demands:

  • Suppliers face varying traceability requirements from brands across different regions.
  • For instance, U.S. brands often focus on cotton sourcing from China, while European brands seek detailed information down to individual farmers' wages and safety measures.
  • This disparity complicates suppliers' efforts to comply effectively.


2. Ambiguity in risk assessment:

  • There's a lack of clarity regarding which regions are considered high-risk for issues like forced labour.
  • Suppliers encounter conflicting lists from various international entities. 
  • This makes it challenging for suppliers to determine compliance priorities.


3. Unrealistic and unclear requests:

  • Some brand requests are perceived as impractical or vague, such as demands for evidence that synthetic fabrics are produced without certain geopolitical influences or that they are made from ‘Putin-free’ oil. 
  • Or concerns about deforestation linked to luxury products.


4. Departmental responsibility for traceability:

  • While sustainability teams are involved, sourcing teams often bear the primary responsibility for implementing traceability processes. 
  • This division can lead to inconsistencies and challenges in data management.


5. Lack of unified traceability platforms:

  • Suppliers unanimously agree that no single technology platform currently meets the comprehensive traceability requirements imposed by various brands.
  • Most require all supply chain entities to be onboarded, making adoption difficult.
  • Some platforms impose requirements from the top down, making them inaccessible to smaller suppliers.
  • Others, like Retraced, allow suppliers to work from the bottom up, encouraging fibre producers to participate.
  • The absence of interoperability among existing systems further exacerbates this issue.


6. Data ownership and equity concerns:

  • Suppliers invest significant resources in generating traceability data, e.g., investing in platforms that cost hundreds of thousands of dollars, plus internal staffing, but often lack ownership or control over its usage.
  • This imbalance raises concerns about privacy and the equitable distribution of benefits derived from the data.


Recommendations for brand CSR initiatives:


1. Standardise traceability requirements:

  • Collaborate with industry stakeholders to harmonise traceability demands, reducing complexity and enabling suppliers to develop streamlined compliance processes.


2. Clarify risk assessment criteria:

  • Provide clear guidelines on regions and practices considered high-risk, ensuring suppliers can prioritise efforts effectively and align with brand expectations.


3. Ensure realistic and transparent requests:

  • Engage in open dialogues with suppliers to understand the feasibility of traceability demands, ensuring that requests are practical and clearly communicated.


4. Integrate cross-departmental efforts:

  • Foster collaboration between sustainability and sourcing teams to create cohesive traceability strategies, leveraging the expertise of both departments.


5. Invest in interoperable traceability solutions:

  • Support the development and adoption of technology platforms that offer comprehensive traceability features and can integrate with various systems used by suppliers.


6. Promote data equity and ownership:

  • Establish policies that recognise suppliers' ownership of the data they generate, allowing them control over its usage and ensuring they benefit from the insights derived.


7. Develop joint position statements on data equity:

  • Collaborate with suppliers and industry organisations to create position statements that address data equity, setting clear expectations for data ownership, usage, and privacy.


By implementing these recommendations, brands can enhance their CSR initiatives, foster stronger partnerships with suppliers, and contribute to a more transparent and equitable fashion supply chain.


Call to action:

If you’re a supplier and would like to join, Get in touch.

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Author
Melanie Plank

Director of Content & Research at Common Objective