Fashion brand Desigual deploys blockchain solution to keep tabs on supply chain
Spanish clothing brand Desigual has deployed a blockchain solution to improve transparency and resiliency in its supply chain, the company has announced.
It is working with Finboot, also headquartered in Barcelona, to integrate the blockchain group’s MARCO track and trace application into its import and export processes, the company said. The initiative is designed to provide Desigual with closer sight of its supply chain, as products are shipped through distribution channels and into stores.
Finboot said Desigual has faced challenges until now to be able to track orders and deal with delays in its supply chain. The new blockchain-based solution enables it to track purchase orders into distribution centres on a “near real-time” basis, with all supply-chain interactions registered in a distributed ledger.
“There are numerous logistical milestones to meet ahead of the goods arriving at the retailer’s distribution centre. These include the negotiation of a lead time for each product line in the purchase order with tier one suppliers and the organisation of transport for the finished goods via freight forwarders,” the company said.
“[Desigual has] previously been unable to determine where the issue originated within the supply chain. It is even more difficult to take preventive measures before an issue or delay occurs, since there isn’t an effective mechanism in place that can flag these in advance.”
The pair are looking at ways to extend the tracking arrangement across Desigual’s entire supply chain, from purchase order to end consumer. Finboot said the move would “[enable] complete visibility of all production processes and distribution channels.”
It commented: “This is an important step for Desigual as the fashion industry continues to evolve its relationship with the consumer to become more transparent, accountable and data-driven.”
Javier Fernández, technology leader at Desigual, said: “Having transparent, resilient supply chains is of paramount importance to us as we look to both increase our operational efficiency and gain greater insight into our production processes. By using blockchain, we are ensuring that we remain at the forefront of digitalisation, which gives us a competitive edge over brands that continue to rely on analogue, inefficient systems.”
Finboot works in the consumer goods and oil and gas industries. It claims contracts with “leading brands in Europe and the US”.
Juan Miguel Pérez Rosas, chief executive and do-founder at the firm, said: “Blockchain can bring much needed transparency and visibility to complex logistics and help build the supply chains of the future… In an era of accelerated globalisation, the need for secure, digitalised supply chains has never been greater. The adoption of technology that gives partners, suppliers, and consumers access to more accountable information will bring much needed trust to brands in an increasingly data-driven world.”