LENZING – Austrian wood-based fibre maker, Lenzing Group, has announced the launch of a new supply chain transparency platform which it will first roll out across South East Asia in countries such as India, Bangladesh and Pakistan.
The platform, which uses blockchain technology to enable fibre identification across supply chains, has been developed by blockchain specialist TextileGenesis. It is said to have proven an effective product authentication mechanism, with a digital chain-of-custody being created for transactions, and is part of a broader push by the textile supply chain towards greater transparency.
Lenzing itself has been using the blockchain technology since 2019 and it was officially launched on November 5 after pilots.
There will now be a follow-up 12-month pilot program and field trials with four leading brands including H&M and supply chain players from ten countries in three regions, with the global roll-out of the platform set to be conducted in phases.
During the first phase, Lenzing’s supply chain partners based in South Asia (India, Bangladesh, Pakistan and Sri Lanka) will complete the onboarding process within Q4 2020. An estimated 300+ supply chain partners in China and Turkey will also join the programme in Q1 2021. It is estimated that by Q2 2021, most eligible Lenzing supply chain partners will be onboarded into the platform – in theory ensuring full supply chain traceability for Lenzing.
Said Robert van de Kerkhof, Lenzing’s chief commercial officer: “Over the past year, during the pilot program and field trials we have been receiving very positive feedback from brands and supply chain partners. Our brand partners have also been encouraging us to accelerate the global roll-out for traceability of Lenzing fibers. With this new system and the integration with Lenzing E-Branding fabric certificates, the entire Lenzing ecosystem will create an unprecedented level of transparency.”
Amit Gautam, chief executive officer and founder of TextileGenesis said: “With increasing compliance and reputational risks, CEOs and Boards of top 100 fashion brands have committed to using 100 per cent sustainable and traceable fibres over the next five years, with transparency being a core part of business priorities. Sustainability and traceability are two sides of the same coin, and it’s great to see Lenzing paving the way for the entire fashion industry to follow. Our supply chain traceability platform will create digital accounting for Lenzing’s innovative and sustainable fibres across the entire supply chain using Fibercoins traceability technology.”