7 October 2026International edition
Vol. I · No.
7 October 2026
AI in Fashion
DAILY
The daily briefing on AI in the fashion business
Where fashion meets artificial intelligence.
Supply Chain & Sustainability · Guide

Supply chain traceability in fashion: where to start

Regulators, retailers and consumers increasingly ask where clothes come from. A practical guide to mapping suppliers, collecting data and building traceability step by step.

KEY TAKEAWAYS Summary by the editors

  1. Traceability means being able to identify who made a product and its components, at which sites, from which materials, and to evidence it.
  2. Most brands know their finished-goods suppliers but have limited visibility of fabric mills, processing units and raw material sources further upstream.
  3. A practical start is to map tier one fully, then extend to tier two for the highest-volume or highest-risk materials.
  4. EU rules such as the ESPR and its Digital Product Passport are expected to require origin and operator information, which makes structured traceability data increasingly necessary.
  5. Traceability data is only useful if it is linked to products in core systems, not kept in separate spreadsheets.

Ask a fashion brand who sewed its best-selling shirt and it will usually know. Ask who wove the fabric, who dyed it and where the cotton was grown, and the answers become vague. That gap is what supply chain traceability tries to close, and it is moving from a voluntary effort to an expectation from regulators and retail partners alike.

What does traceability mean in fashion?

Traceability is the ability to identify and document the origin of a product and its components through each stage of production. In fashion, the supply chain is usually described in tiers:

Typical tiers in a fashion supply chain
TierActivityTypical visibility today
Tier 1Cut, make and trim; finished-goods assemblyUsually known and contracted directly
Tier 2Fabric production, dyeing, printing, finishing, trimsPartly known, often via the tier 1 supplier
Tier 3Yarn spinning and fibre processingOften unknown
Tier 4Raw materials: cotton farms, wool, synthetic polymer productionRarely known without certification or specific programmes

Traceability differs from transparency. Traceability is knowing and evidencing the chain internally; transparency is choosing what to publish. Most regulation and retailer requests focus first on the former.

Why is traceability becoming necessary?

Several pressures are converging. The EU Ecodesign for Sustainable Products Regulation will introduce a Digital Product Passport for textiles, and the Commission has indicated that origin information and the identification of relevant economic operators are among the information categories it may contain. As of autumn 2026 the textile rules are still being prepared, so details may change; brands should check the latest official guidance.

Beyond product rules, due diligence and forced labour legislation in several jurisdictions, customs requirements, and retailer codes of conduct all depend on knowing the supply chain. Environmental claims also need evidence: a claim about organic or recycled content is only defensible if the material can be traced. Companies should seek legal advice on which specific obligations apply to them.

Read also
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Where should a brand start?

  1. Complete tier 1: list every finished-goods supplier and every production site actually used, including subcontractors.
  2. Link sites to products: record which sites produced which styles and orders, not only which suppliers you contract.
  3. Prioritise tier 2: start with your highest-volume fabrics or materials with known risk, and ask tier 1 suppliers to name mills and processing units.
  4. Standardise the request: use one supplier data template with fixed fields, rather than ad hoc emails.
  5. Collect evidence: transaction certificates, certification scope documents and purchase records, linked to the relevant orders.
  6. Review and refresh: suppliers change; set a cycle for updating data each season.

What data should be captured?

  • Supplier and site identity: legal name, address, and a stable identifier for each facility.
  • Process step performed at each site, such as weaving, dyeing or sewing.
  • Link between purchase order, production batch and the sites involved.
  • Material composition and, where relevant, certification and certificate numbers.
  • Country of each processing step, not only the country of final assembly.

The critical design choice is linking this data to product and order records in core systems. Traceability held in a separate spreadsheet quickly falls out of date and cannot feed product passports, retailer data requests or claims substantiation.

It also helps to agree internal definitions early. Terms such as 'manufacturer', 'site' or 'origin' can mean different things to sourcing, legal and sustainability teams. A short glossary, aligned with the definitions used in relevant regulation and in your retail partners' templates, prevents the same field being filled in three different ways.

Read also
How does AI detect defects in fabrics and garments?

What are the common pitfalls?

The first is supplier fatigue. Suppliers receive requests from many brands in different formats; a clear, consistent request and an explanation of why the data is needed improve response rates. The second is confidentiality: tier 1 suppliers may be reluctant to disclose their own sources, which is often resolved through contract terms and trust built over time. The third is treating traceability as a one-off audit rather than a continuous process tied to each order.

Traceability is slow to build, which is precisely why it pays to start before the rules are final. Every season of structured data collected now reduces the effort when passports and partner requirements become mandatory.

A further pitfall is relying entirely on certification. Chain-of-custody certificates are valuable evidence for specific materials, but they cover only certified products and do not map the rest of the supply chain. Equally, technology alone does not create traceability: digital platforms and identifiers help collect and share data, but only if suppliers are engaged and the underlying processes are sound. Budget time for supplier onboarding and training, not only for software.

Frequently asked questions

Is traceability the same as transparency?

No. Traceability is the ability to identify and evidence the origin of products internally. Transparency is the decision to publish some of that information, for example a supplier list.

How far down the supply chain should brands trace?

Start with complete tier 1 data, then extend upstream for the highest-volume and highest-risk materials. Requirements will depend on the regulations and partner demands that apply to your business.

Do certifications provide traceability?

Chain-of-custody certifications can help evidence that certified material moved through the supply chain, using documents such as transaction certificates. They cover specific materials and do not replace a brand's own supplier mapping.

GuideThe complete guide to AI in the fashion supply chain and sustainabilityRead the complete guide
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