The Struggles of Data Sharing in Supply Chain Transparency
Introduction
Behind every claim of a sustainable or ethical product lies a complex web of data—and a lot of it is stuck. The move toward supply chain transparency is necessary and urgent, but many brands, manufacturers, and stakeholders are hitting serious roadblocks when trying to share the data needed to make it work.
This article explores the pain points each group feels, helping readers understand the barriers preventing transparency from becoming a reality.
Deep Dive: The Data Sharing Pain Points
1. Brands & Retailers
Unclear Metrics: Different standards and metrics make comparisons confusing, undermining consumer trust.
Data Quality Issues: As demands grow, data gets messier and less reliable.
High Costs: Integration and compliance come with steep expenses, often hidden until it’s too late.
Limited Upstream Influence: Brands struggle to get data from deeper tiers like raw material processors or chemical suppliers.
Risk of Criticism: Ironically, the more transparent a brand is, the more likely it is to be publicly scrutinized.
2. Manufacturers
Audit Fatigue: Constant data requests drain time and money.
No ROI on Data: Investments in data capabilities don’t translate into higher product prices.
Conflicting Systems: Brands and certifiers often require different data platforms, causing duplication.
Short Contracts: Why invest in data when clients might vanish tomorrow?
3. Civil Society & Workers
Lack of Access: Workers and civil society groups can’t access the data they need to advocate for better conditions.
Personal Risks: Whistleblowers and honest data providers face potential backlash or job loss.
No Incentives: These groups often add value but receive no benefits from data systems.
4. Standards Organizations
Fragmentation: Competing standards and poor interoperability mean duplicated work for everyone.
Missing Taxonomies: Without agreed definitions, aligning data is nearly impossible.
5. Platform Providers
Data Hoarding: Business models incentivize keeping data private, limiting its usefulness.
Lack of Interoperability: Most platforms can’t talk to each other, creating silos.
Cost of Scale: Storing and processing future data volumes could become unsustainable.
6. End Consumers & Circular Businesses
Downstream Blind Spots: Brands often don’t know where their products end up, hampering recycling and reuse efforts.
Increased Fraud Risks: Higher regulatory stakes lead to more greenwashing and fake data.
Examples
A factory might be sending nearly identical data to 60 different clients, using 10 platforms, each requiring unique formats.
Brands may over-comply with vague laws, investing in redundant audits and data processes out of fear of penalties.
Workers might collect vital ESG data through mobile apps, but if there’s no protection or reward, participation dries up.
❓FAQs
Q: Why don’t brands just use one system? A: Each has different needs, standards, and regulations to meet. There's no one-size-fits-all system.
Q: Isn’t this just a tech issue? A: Partly, but the bigger problems are trust, costs, incentives, and lack of standardization.
Q: Can’t regulators fix this? A: Regulators often make things harder by layering on new requirements without streamlining existing ones.
Key Take-aways
Every stakeholder experiences unique pain points in data sharing.
The system is fragmented, costly, and often unfair to those producing or using the data.
Without addressing these challenges, true transparency will remain out of reach.
Sources:Global Textiles Governance Initiative. (2024, October 31). Playbook for Shared Data Systems: Accessing High Quality Sustainability Data in Global Textile Supply Chains (Version 1.0). https://www.textilesgovernance.org/projectresultsGlobal Textiles Governance Initiative. (2024). Annexes to the Playbook for Shared Data Systems. https://www.textilesgovernance.org/projectresultsGlobal Textiles Governance Initiative. (2024). Overview of Identified Data-Related Pain Points of Stakeholder Groups Representing the Textile Supply Chain. https://www.textilesgovernance.org/projectresults