Blockchain-based framework for supply chain traceability: A case example of textile and clothing industry

Abstract

Traceability has emerged as a prime requirement for a multi-tier and multi-site production. It enables visibility and caters to the consumer requirements of transparency and quality assurance. Textile and clothing industry is one such example that requires traceability implementation to address prevailing problems of information asymmetry and low visibility. Customers find it difficult to access product data that can facilitate ethical buying practices or assure product authenticity. Besides, it is challenging for stakeholders to share crucial information in an insecure environment with risk of data manipulations and fear of losing information advantage. In this context, this study investigates and proposes a blockchain-based traceability framework for traceability in multi-tier textile and clothing supply chain. It conceptualizes the interaction of supply chain partners, and related network architecture at the organizational level and smart contract and transaction validation rules at the operational level. To illustrate the application of the proposed framework, the study presents an example of organic cotton supply chain using blockchain with customized smart contract and transaction rules. It finally demonstrates the applicability of the developed blockchain by testing it under two parameters. The proposed system can build a technology-based trust among the supply chain partners, where the distributed ledger can be used to store and authenticate supply chain transactions. Further, the blockchain-based traceability system would provide a unique opportunity, flexibility, and authority to all partners to trace-back their supply network and create transparent and sustainable supply chain.