Why Previous Efforts to Fix Data Sharing in Supply Chains Have Fallen Short

Introduction

Efforts to improve data sharing in global supply chains—particularly in the textile industry—are not new. Yet many of the same issues persist. Why? This blog explores the initiatives and strategies tried so far, and why they haven’t lived up to their promise.

Deep Dive: What Has Been Tried So Far

Audit & Certification Systems

Certifications like GOTS, WRAP, and Better Cotton have made strides, but:

• Data Silos: Each certification manages its own data, often with no interoperability.

• Redundancy: Factories undergo multiple audits for different certifications that check for nearly identical things.

Traceability Platforms

Platforms like Worldly, Amfori, and SLCP provide digital traceability, but:

• Lack of Interoperability: Platforms often don’t share data with each other.

• Incentive Misalignment: Platforms have business models that reward data hoarding rather than sharing.

Brand-Led Initiatives

Some brands have created proprietary data systems, but:

• One-Off Solutions: These don’t scale or serve the broader industry.

• Short-Term Contracts: Manufacturers hesitate to invest when contracts might not be renewed.

Multi-Stakeholder Forums & Agreements

Working groups and data-sharing consortia have emerged, but:

• Slow Decision-Making: Coordination between diverse interests delays implementation.

• Lack of Enforcement: Agreements often depend on voluntary participation and lack teeth.

Legislative Mandates

New regulations like the EU CSDDD and CSRD are pushing transparency, but:

• Ambiguity: Vague requirements lead to overcompliance and confusion.

• Compliance Fatigue: The burden shifts downstream, especially to smaller manufacturers.

Examples

• The ZDHC and Amfori integration was a step forward but required extensive negotiation and only partially alleviates audit fatigue.

• Mapped in Bangladesh provides grassroots-level data but lacks scale and widespread industry recognition.

❓FAQs

Q: Why haven’t these efforts worked? A: Because they often address symptoms, not root causes: misaligned incentives, fragmented standards, and lack of trust.

Q: Isn’t regulation enough? A: Not by itself. Without harmonized standards and data interoperability, regulation can exacerbate fragmentation.

Q: What makes a solution scalable? A: Broad buy-in, shared incentives, and systems designed for interoperability and reuse.

Key Take-aways

• Many well-meaning efforts have been attempted, but few have delivered lasting change.

• Lack of interoperability, misaligned incentives, and redundancy are recurring failures.

• New approaches must confront these root issues head-on.