4TRACEABILITY OF THE FASHION SUPPLY CHAIN Flashcards
What is the definition of traceability in the fashion industry?
The ability to trace the history, application, or location of a product in relation to the origin of its materials and parts, the processing history, and the distribution and location after delivery.
What are the two main requirements for traceability?
Information sharing and visibility.
What is the Universal Product Code (UPC) used for?
It is a standardized global identifier for products used for trading, shipping, ordering, and retailing purposes.
What is a Stock Keeping Unit (SKU)?
An internal or in-house number for inventory or stock item management, differing by product variants like size, color, and manufacturer.
What does Electronic Data Interchange (EDI) facilitate?
It facilitates the electronic exchange of business information between manufacturers and retailers.
Why is visibility crucial in supply chains?
Because dynamic and complex supply chains with many production steps hinder visibility beyond direct suppliers and move sustainability risks from the corporate to the supply chain level.
What is internal transparency in supply chains?
Acting in a way that enables internal supply chain stakeholders, such as suppliers, traders, manufacturers, vendors, and retailers, to perceive and understand the company’s operations.
What is external transparency in supply chains?
Acting in a way that enables external stakeholders, such as investors, customers, regulators, and NGOs, to perceive and understand the company’s operations.
Name two product-oriented tools for traceability.
RFID (Radio Frequency Identification) and blockchain.
What is the function of RFID in supply chains?
It uses wireless communication to uniquely identify an object, facilitating efficient logistics, in-store workflows, and supply chain traceability.
How does blockchain enhance traceability?
By providing a distributed, decentralized, public ledger that records transactions in a secure, validated, and unalterable manner.
Name three traceability certificates relevant to the fashion industry.
Global Organic Textile Standard (GOTS), Fairtrade textiles, and Better Cotton Initiative (BCI).
What is the purpose of clothing labels in the context of traceability?
To provide information on the product’s origin, sustainability, and compliance with regulations, helping consumers make informed choices.
What is the EU Digital Product Passport?
A regulation aiming to improve transparency and access to data on product characteristics, compliance with EU rules, and support the transition to a circular economy.
What challenges does the EU Digital Product Passport face?
Needs for standardization, full visibility beyond first tiers, and ensuring data integrity across global supply chains.