Enhancing supply chain transparency and blockchain adoption in apparel procurement processes : a comprehensive analysis

Abstract

The textile and apparel industry, a significant global economic player, has seen a resurgence post-COVID-19, with market revenue reaching 1.74 trillion USD in 2023 and projected to hit 2 trillion USD by 2028. This growth is paralleled by increasing demands for transparency due to the complexity of supply chain management and consumer concerns about traceability and sustainability. While many fashion brands have started sharing detailed product processing information, comprehensive evaluations of transparency in textile and apparel supply chains remain sparse. To bridge this gap, we conducted a systematic literature review, identifying research clusters focused on sustainable approaches, supply chain perspectives, traceability implementation, and information transparency. Our study underscores the 'implementation of traceability for transparency' as a critical need, highlighting blockchain technology as a promising solution. Despite its recognized potential in other industries, the apparel sector lacks extensive empirical studies on blockchain applications. We thus focused on the procurement process, identified as a pivotal area for enhancing transparency, and investigated barriers to blockchain adoption through industry collaboration in Sri Lanka. Using the Delphi technique and Interpretative Structural Modeling (ISM), we analyzed twelve identified barriers, revealing key challenges such as underdeveloped technology, lack of expertise, and security concerns. Our findings offer strategic insights for overcoming these barriers, proposing the development of Key Performance Indicators (KPIs) to support initial blockchain implementation stages. The study advocates for further research to validate and expand upon these findings, aiming to create effective implementation frameworks and advance the technological landscape of the apparel supply chain.