IMPRESSIONS from a Cross-section

The blockchain technology aims to redefine the most important business relationships by establishing trust, transparency, and a newly discovered collaboration. We do not expect customers to turn towards sustainable, quality products, produced under fair conditions in the long run merely because of the transparent documentation of the textile supply chains. Immediate action must be taken in the textiles industry, as the industry is strongly interwoven internationally and the supply chains are very complex. Just like in the meat industry, there has been a complete detachment of the consumer from the production process. Hardly anyone is aware of the amount of effort and work that is invested.

The first thing I want to highlight is that blockchain is not a silver bullet for each and every problem in the supply chain. There are specific challenges that it can solve in the supply chain. And there are a lot of things it cannot. So, we should have a balanced view of what blockchain as a technology can or cannot deliver-not only for supply chains, and beyond too. I have a pragmatic but still optimistic view of what it can achieve but very clearly focused on what problems it can solve and what it cannot. A lot of cynicism comes from the lack of truly understanding what the technology is. And if you go deeper into the technology then it becomes clear-what specific areas it can address and what it cannot.

Blockchains will govern the supply chains of the future; so, I feel that it's an understatement. The RFA (retail, footwear & apparel) industry has never been overly concerned about the source of the materials (and components used in those materials). As long as the finished goods were delivered on time, with the appropriate quality and price, most brands and retailers did not exert the necessary effort to dig more deeply into the various tiers within supply chain. The thinking has changed due to the Xinjiang cotton issue and the increased consumer awareness related to sustainability.