The implementation of new ESG laws by the European Union means that apparel brands must now disclose detailed information about their supply chains, including the names of their suppliers, working conditions, and environmental impact.

Failure to comply with these laws can lead to significant penalties, making it crucial for brands to ensure that their products are ethically sourced and manufactured. This requires full visibility into their operations, which can also help apparel brands gain a competitive edge.

However, the textile supply chain is complex, with multiple players involved in sourcing, manufacturing, and distribution. This often results in information silos, making it difficult for executives to respond quickly to disruptions. The pandemic has further emphasized the importance of supply chain visibility, as even minor disruptions can have far-reaching consequences. Brands that recognize the significance of visibility at every stage of their supply chain can improve their agility, resilience, and avoid major ESG violations.

Increased supply chain visibility not only helps prevent ESG violations but can also provide significant benefits for apparel brands. For instance, it allows them to make informed decisions about inventory management, product development, and logistics.

To address the challenge of limited visibility, technology solutions such as production tracking software and digital quality management and inspection tools are available. Brands can use these solutions to monitor their global suppliers closely, maintain constant communication, set up safeguards and approvals, and receive timely updates on all activities.