Purpose of this paper:

Textile supply chains are complex due to their globally dispersed, multi-tiered structure, which contributes largely to the lack of sustainability and visibility (Garcia-Torres et al., 2021). In this context, traceability plays a major problem-solving role, but is difficult to implement uniformly across the entire supply chain by a single actor or a central authority (Kumar et al., 2017); however blockchain-based traceability system could be prospective (Agrawal et al., 2021). This paper aims at developing and testing a decentralized framework for blockchain-based traceability for the textile supply chain that requires no central authority, and the interaction is governed by smart contracts in a digital environment.  

Design/methodology/approach:

A multistage approach is followed to develop a blockchain-based traceability framework. In the first stage, smart contracts – that govern the interactions of the supply chain actors while keeping the material traceability through mass balancing concept – for decentralized interactions were designed. The second stage implements the developed smart contracts on an Ethereum virtual environment where the interaction of the supply chain stakeholders and the supply chain transaction were recorded on a distributed register, or blockchain. Finally, the implemented system is tested using a discrete event simulation which demonstrates the implication of the framework for the textile supply chain. 

Findings:

The blockchain system is managed by multiple actors (also known as nodes) which are incentivized for implementing or registering the transactions on the blockchain. In this work, the smart contracts that govern the interactions of the supply chain stakeholders were linked to the material flow and mass balancing on each transaction. However, keeping the lot or batch information on each production stage increased transaction data which has subsequently resulted in a higher cost for registering a transaction on the Ethereum blockchain. Furthermore, the analysis reveals the role of certification authority when mass balancing cannot be carried out.

Value:

The paper proposes a framework for implementing blockchain-based traceability and then testing by using discrete event simulation. Therefore, the study not only makes theoretical contributions by proposing a new traceability framework but also tests it in a computer-simulated environment to understand its practical implication. 

Research limitations/implications:

The discrete event simulation considers the role of sellers and buyers while not accounting for the operations of intermediate stakeholders such as transporters. Therefore, the role of these stakeholders needs further to explore to establish the full impact of the proposed framework.  

Practical implications:

The paper provides an insight into peer-to-peer interactions of supply chain actors in blockchain and cost analysis of registering transactions on a distributed ledger that create a pathway for decentralized traceability system in the textile industry. 

References:

 Agrawal, T. K., Kumar, V., Pal, R., Wang, L., & Chen, Y. (2021). Blockchain-based framework for supply chain traceability: A case example of textile and clothing industry. Computers & Industrial Engineering, 154, 107130.

Garcia-Torres, S., Rey-Garcia, M., Sáenz, J., & Seuring-Stella, S. (2021). Traceability and transparency for sustainable fashion-apparel supply chains. Journal of Fashion Marketing and Management: An International Journal. https://doi.org/10.1108/JFMM-07-2020-0125

Kumar, V., Hallqvist, C., & Ekwall, D. (2017). Developing a framework for traceability implementation in the textile supply chain. Systems, 5(2), 33.