Desigual is known for its bold, forward-looking fashion statements ©Getty Images
Desigual is known for its bold, forward-looking fashion statements ©Getty Images

Blockchain helps fashion brand get process visibility sewn up

Desigual embedded blockchain in its import and export processes to improve supply transparency and build resilience

“Atypical” is how Spain-based retailer Desigual describes its clothing, and the company’s mission to secure its supply chain is equally uncommon. Although many firms have considered using blockchain, Desigual has incorporated the technology into its daily operations. 

The company’s ordering process suffered a lack of visibility, and when delays inevitably arose, they found it difficult to determine where the issue originated. It was hard to take preventive measures since there was no mechanism in place to flag issues in advance.

To get a grip on the movement of goods, the firm partnered with enterprise blockchain group Finboot to integrate its MARCO Track & Trace application into the import-export process in a three-month project aiming to gain process transparency, supplier accountability and enhanced brand reputation.

“By digitising the entire process and, more importantly, flagging any issues that arise, the monitoring of the process is now a passive action: Desigual is notified of any delays or changes at a PO level so they can be dealt with as they occur,” Desigual tells SM.

“Blockchain technology creates a single source of truth that records every stage of the supply chain.” While the project is ongoing, the company claims the system has already smoothed out some tricky operational functions, “from submission of POs to the delivery of goods, leading to cost savings, improved lead time, early warnings of any issues within supply chain, and better dispute resolution (accountability and penalty management). Also, manufacturing will benefit from raw material provenance and consumption rates to inform changes and decisions.”

The designer now has process visibility at near real-time, and it plans to extend the traceability tool across the entire supply chain, from purchase order to end-consumer, aiming to reach complete visibility of all production processes and distribution channels.

“Blockchain can bring much-needed transparency and visibility to complex logistics and help build the supply chains of the future,” says Juan Miguel Pérez Rosas, Finboot CEO and co-founder. “The adoption of technology that gives partners, suppliers and consumers access to more accountable and traceable information will bring much needed trust to brands in an increasingly data-driven world.” 

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