Can utilization of distributed ledger technology help resolve the compliance challenges with supply chain traceability?

Companies are investing in supply chain traceability capabilities to comply with regulatory requirements and reduce their risk of exposure to unethical labour practises by third-party suppliers. This thesis will focus on the textile, fashion, and apparel industries and their supply chain traceability challenges in the context of mitigating the risk of exposure to unethical labour practises by third-party suppliers. The argument of this study is applicable to larger fashion and apparel industry firms. The question asked in this thesis is, can distributed ledger technology help resolve the compliance challenges with supply chain traceability? But existing obstacles to supply chain traceability include a lack of transparency, inadequate record-keeping as a result of the manual nature of information collection and processing, the extensive documentation required to ascertain traceability, and data manipulation. According to the research presented in this thesis, distributed ledger technology (DLT) has the potential to play a significant role in resolving issues related to supply chain traceability. DLT can improve transparency and increase stakeholder trust and accountability by providing a secure and transparent method for monitoring and validating transactions and data across the entire supply chain.

The methodology relied on in this thesis is, literature review and desk research to identify compliance concerns resulting from recently enacted legislation on compelled labour. The literature review will aid comprehension of the challenges of supply chain traceability and the role blockchain technology can play in enhancing traceability. Through case studies, it will be possible to gain insight into the implementation of DLT-based supply chain traceability solutions. In addition, interviews will help to gain a better understanding of the industry's supply chain traceability challenges and the complications caused by the implementation of compelled labour regulations. Based on the literature review, desk research, case studies, and interviews, I will draw conclusions and determine whether DLT-based solutions can improve supply chain traceability to comply with forced labour regulations.