Exploring the impact of supply chain traceability on procurement : a single case study from the apparel industry

Abstract

Supply chain traceability is becoming a competitive advantage for industries that depend highly on customers. Apparel is one of the most impactful industries that heavily relies on customers. Many European and US clothing brands are implementing several standard and sustainable practices throughout the supply chain considering the social and ethical behaviors and customers’ perceptions. The ultimate goal is to create a platform for the final customer to have the yarn level details, at the moment of purchasing the product. Further, it has beedn identified that there is a lack of discussion about the impact of traceability on SC functions that support managing a proper information flow. Moreover, the literature highlighted that procurement is a function that links the supply chain partners by maintaining the information flow throughout the upstream and downstream supply chain. Hence, this study analyses the impact of supply chain traceability on the procurement activities in the apparel industry. The study employs the case study method by interviewing ten participants currently working in the procurement team at the selected organization and gathering the data through semi-structured questions. The study leads the discussion upon the findings by exploring how SC traceability impacts procurement in the apparel industry. Moreover, it finds the highest-impacted procurement activity as “Managing SC risk sources” and the least-impacted procurement activities as “Deciding the best transportation mode” by proving, that the impact of traceability on each procurement function is not the same in the apparel industry. Finally, the study emphasizes the necessity of creating the link among the supply chain partners which will ultimately benefit on achieving efficiency and accuracy in procurement functions