Blockchain for traceability in textiles and clothing sectors
About this good practice
The GP is a feasibility study (pilot project) pertaining to the application of blockchain technology to one of the most significant sectors of Made in Italy, the Textile sector.
The study was commissioned by the Ministry of Economic Development, developed in collaboration with IBM, associations and companies, to assess the applicability of blockchain in support of traceability, sustainability and promotion of the textile sector in Italy, much of which is made up of SMEs.
The idea underpinning the study is that technology in distributed registers can play a key role in improving transparency when offering Italian products to consumers. The objective was to explore the potential of this technological paradigm by analysing the features of the textile sector as regards traceability in the following dimensions: quality, origin, environmental and ethical sustainability.
Blockchain technology can be a highly useful instrument for companies, because it enables them to leverage the quality and excellence of their own production, so that they take on a more prominent role and therefore boost their negotiating power in different value chains.
500 K€ (estimate)
Evidence of success
The analysis and experimentation highlight how blockchain technology appears to be particularly suitable for supporting the promotion of textile and clothing (T&C), insofar as it enables the resolution of issues which typically arise in traceability processes currently in use. The project also identified scenario elements which could be addressed with a series of accompaniment actions to favour the progressive participation of interested players and the model’s long-term sustainability.
Potential for learning or transfer
The GP is of interest for learning by other regions via the follow perspectives:
• Creation of a “neutral” blockchain, equidistant between the interests of large groups and SMEs.
• Inclusive and participatory bottom-up approach which enabled the identification of priorities, thanks to the direct experience of companies.
• Focus on defining suitable paths and training credits for all professions and competencies which may contribute towards project development.
• Stimulation of a progressive digitalisation with the supply chain vision.