Blockchain Technology in Apparel Supply Chains

The apparel industry is one of the fastest-growing industry employing millions of workers across the world. The majority of these people work in appalling working conditions resulting in the industry being called an industry with ‘slave labour’. Moreover, the industry is known to be the second-largest polluter while consuming a significant amount of natural resources. Literature suggests that unsustainable practices are the result of a lack of visibility in the supply chain. Thus, promoting visibility in supply chains has become imperative in addressing the sustainability issues in the apparel industry. This book chapter presents how blockchain technology addresses the transparency issue and aid in the development of the sustainable apparel industry. The immutability and decentralisation properties of blockchain technology can promote sustainability. Benefits offered by blockchain technology implementation may vary among the supply chain members. For example, the use of blockchain creates ledgers of information that ensure the integrity and authenticity of organic cotton. Meanwhile, at manufacturers, the use of blockchain facilitates designers and merchandisers to share accurate information and collaborate remotely that assists to react faster to market trends. Moreover, it is used to monitor factory safety in its global supply chains. Despite the benefits offered by blockchain technology when implemented in supply chains, there are several challenges related to the implementation. In this chapter technological, organisational, and environmental (TOE) framework is used to examine the blockchain implementation challenges. Issues with compatibility, lack of skilled expertise, lack of clear government regulations, and privacy issues are some of the major challenges of implementing blockchain technology.