Leveraging Transparency in a Disrupted Supply Chain

"After a tumultuous year for the fashion and luxury supply chain — during which consumers and critics scrutinised the quality of goods and found many lacking, incoming legislation shone a light on the lack of transparency in the industry, and labour disputes raged — what's in store for 2025? (...) Brands are looking to reduce their costs, improve delivery times and comply with evolving sustainability regulations. All of this is changing the sourcing map, as brands seek to diversify and protect their supply chains. (...) Experts agree that the best way to do this is to create visibility." - Vogue Business, 2025.

The global fashion and luxury goods supply chain is entering 2025 with significant uncertainty, according to Vogue Business. After a turbulent 2024, the industry faces disruptions in trade routes, strikes at key ports, and changing consumer demands. New regulations such as the ESPR with Digital Product Passes (DPPs) are adding pressure on brands to adapt while maintaining trust with suppliers and consumers.

The Challenges Ahead

Reports of forced labour in global supply chains and pay disputes among Bangladeshi garment workers have exposed power imbalances between brands and their suppliers. Meanwhile, heightened scrutiny from consumers about the quality and value of goods, coupled with rising prices, has left many questioning the ethics and authenticity behind their purchases. For businesses, the need for resilience is more critical than ever.

Bridging the Gap Between Brands and Suppliers

Maintaining strong supplier relationships amid economic turmoil is a pressing challenge. Reduced order volumes, rising shipping costs, and nearshoring strategies have disrupted traditional sourcing models, leaving suppliers feeling undervalued or excluded from decision-making processes.

The introduction of DPPs offers an opportunity for collaboration. By providing a centralized, digital hub for supply chain data, brands can foster transparency, ensure fair practices, and improve decision-making. This strengthens supplier relationships and enables cost savings, ethical sourcing, and better delivery performance.

Turning Transparency into Trust

For consumers, transparency is no longer a "nice-to-have" — it's an expectation. They want to know where their products come from, who made them, and under what conditions. Brands that share their supply chain efforts openly can turn transparency into trust and loyalty. This requires going beyond marketing claims to provide tangible proof, such as certifications and measurable sustainability goals.

Transparency also involves being honest about shortcomings and showing a clear improvement plan. A brand that acknowledges its challenges while actively working to address them demonstrates authenticity, which resonates with today's increasingly discerning customers.

Navigating Uncertainty with Resilience

Flexibility and forward-thinking strategies will be critical in navigating continued volatility. Nearshoring and multi-sourcing can reduce reliance on single markets, while predictive analytics help align inventory with demand, minimizing waste. Transparency platforms enhance these strategies by enabling data-driven decisions and greater agility.

Moving Forward Together

Transparency is more than compliance — it's a strategic tool to rebuild trust and create value. A transparent supply chain enables brands to understand their suppliers, mitigate risks, and respond to disruptions with agility. It also provides a powerful way to communicate progress and efforts to consumers, turning transparency into a competitive advantage, and in a time when visibility is everything, transparency is the foundation for progress — for brands, suppliers, and the consumers they serve.

Read the full article here: What's in store for fashion's supply chain in 2025?