Blockchain technology presents an unparalleled immutability which makes it unique as a disruptive tech of the current times. Supply chain industry in general, has benefited immensely from the adoption of blockchain, off late, across diverse industry sectors such as e-commerce, manufacturing supply chain, shipping and air freight, among others.
The said disruptive tech has also brought in a plethora of employment opportunities for the youth to grab on to. As a matter of fact, blockchain jobs pay exceedingly well. For aspirants to prepare well, we would recommend enrolling into industry-relevant blockchain professional certifications.
Degree of interest in blockchain tech among fashion companies in Italy, by application (2019)
A Brief About Fashion Supply Chains & the Issues Surrounding Them
In this post, we will talk specifically about the increasing contribution of blockchain in global fashion supply chains. Fashion industry has long been struggling with the issues of counterfeiting in its products and accessories catalogue. Fake branding on clothing lines and fashion accessories has had harmed the fashion industry since its inception. But, in the past couple of years, with the introduction of blockchain tech in fashion supply chains, the issues like counterfeiting and ‘accounting fraud’ have been put to rest upto a large extent.
Degree of Interest in Blockchain Tech among Italian Fashion Companies
As per Statista, Italian firms in the fashion industry showed a great interest in blockcahin adaptability in 2019. The specific fields within the fashion supply chain domain that showed high interest in blockchain adoption were anti-counterfeiting, cyber security, and product traceability.
Supply chains in the fashion space are responsible for organizing people, tracking product movements, verifying product’s authenticity, and taking care of other vital factors such as transactional security.
How is Blockchain Helping The Fashion Supply Chains?
Below provided are the different ways in which blockchain tech is helping fashion companies, especially with their supply chain networks:
Deploying Blockchain is Helping Prevention of Frauds in Supply Chain
The technology has brought unparalleled transparency to the global fashion industry. Let’s suppose, you placed an order for a pair of shoes from a local store, and the product is labeled as ‘Made in US’, how would you know that it’s actually a product of the US? As per a report from Visual Capitalist, the damage to fashion industry because of counterfeit products has amounted to USD300 billion, from the viewpoint of global economy.
Blockchain resolves the issue by keeping the records tamper-proof of the product journey starting from raw material to the final finished product. Fake or non-genuine products get traced easily on a blockchain network, and hence, there exists a complete peace of mind, having adopted blockchain tech in supply chains. Blockchain-based applications can help detect the origin of procured goods. All customers need to do is to scan the product code and see its journey.
The Disruptive Tech Help Put Restrictions to Accounting Frauds
The revolutionary technology help prevent accounting frauds to happen in fashion supply chains by developing blocks of digital records on its technological infrastructure(framework) that are tamper-proof. For instance, if Supplier A is supplying via adopting a conventional supply chain network, accounting issues might pop up on both the supplier side as well on the consumer end. This is because, the information on a conventional supply chain is alterable, given the middleman involved, can perform counterfeiting in the amount of the supplies.
On the contrary, on a blockchain-backed supply chain network, it’s impossible to alter the information. How? Let’s take up an example. Suppose, supplier A sends 50 t-shirts to consumer B deploying blockchain tech. In this case, the number of t-shirts and the amount for the respective sale cannot be tampered with, because such records get securely stored on the blockchain network, wherein no one can change a single thing once registered, and thereby, a full stop on the possibilities of a fraud. By now, we can surely say that blockchain industry is really serving good to the global fashion industry.
Blockchain Supply Chains Work Much Faster than Conventional Ones
A fashion company would know the vitality of getting fast-delivery of new stocks. Although transaction-processing on a blockchain network would take anything around ten minutes to several hours in some cases, but off late, there has emerged new blockchain projects that can make a transaction happen in a matter of a few seconds.
Blockchain removes the middleman from the supply chain network which is the primary reason for less frauds and counterfeiting. Besides, fashion products that are found defective, can be easily returned back leveraging the blockchain network.