Why the Future of Supply Chain Transparency Is Built on Collaboration (and Why that’s Great)

These past few months, we’ve been watching supply chain transparency shift from a compliance-driven project into a core operational capability. As due diligence laws keep changing and commercial risks move deeper into supply chain tiers, ESG and CSR leaders are under pressure to build systems that go beyond reporting. What’s needed is functional infrastructure that supports faster decisions, stronger supplier relationships, and verifiable data at every tier. 

Transparency Is Becoming Embedded in Supply Chain Operations

In this landscape, traceability becomes part of how sourcing, compliance, and procurement work together. Gone are the days when traceability was a separate sustainability initiative. A McKinsey & Business of Fashion report for 2025 highlights that fashion executives expect regulatory shifts to have a substantial impact on how they manage supplier relationships and sustainability priorities. And the EU’s upcoming Corporate Sustainability Due Diligence Directive (CSDDD) is already reshaping how brands approach supplier oversight and engagement. Keep in mind though: when we say that laws keep changing, this is one of them. Keeping ESG teams on their toes, and not in a good sense.

Brands in the apparel industry are responding by integrating transparency tools into core business processes. Platforms that enable them to move from manual reporting and data collection toward continuous collaboration across their supplier networks. 

As Patagonia’s Director of Transparency, Nick Allen, put it in a recent webinar with the United States Fashion Industry Association (USFIA): 

“Transparency is just the beginning. It’s not the end goal. For us, transparency is how we start to get insight into what’s actually happening on the ground. But ultimately, what we want to do is build programs that address root causes of labor violations and risks in the supply chain. We can’t do that unless we understand where the risks are and who is in our supply chain in the first place.” 

Transparency Data Is not for Sustainability Teams Only Anymore 

Transparency used to be a topic for the sustainability teams – they were the ones needing the data for their yearly transparency reports. But today, a lot more departments need those insights and are ready to act on supplier data. 

At Retraced, this shift shows up in how customers use the platform. 

“What we see from the brands we work with is that traceability often starts with the sustainability team,” said Nicholas Brown, Partnership & Engagement Lead. “But very quickly, it becomes part of the procurement workflow, the supplier onboarding workflow, the compliance workflow. Nobody wants three different tools for one supplier. That’s where the platform becomes infrastructure, not just a reporting tool.” 

The demand for multi-functional platforms is also reflected in the rise of supplier lifecycle management, an approach that tracks a supplier relationship from first contact through onboarding, documentation, audits, assessments, and ongoing collaboration. This reduces redundant tools and makes supplier data accessible across teams. 

Shared Systems Reduce Supplier Fatigue 

Transparency doesn’t work if suppliers don’t participate. And right now, supplier fatigue is one of the biggest obstacles to better data. 

“A lot of supplier fatigue stems from the fact that brands all ask for similar data, but in different formats, different timelines, with different expectations,” said Jason Dworshak, Director of Sourcing & Production at Secret Charm. “It creates confusion, and suppliers are overwhelmed trying to meet everyone’s demands.” 

When systems are fragmented, suppliers face duplicate work and unclear expectations. That leads to delays and even resistance. 

“What works really well,” Dworshak explained, “is when we have a central system, where suppliers can upload documentation and know what’s expected. Once they understand the benefit because we explain how it ties into business continuity and compliance, they’re more willing to engage.” 

Start with Traceability, Build Toward Risk and Remediation 

Many brands still view traceability as an end goal. But once supply chains are mapped, the real work begins: identifying risks, supporting remediation, and tracking improvements over time. 

That’s where Patagonia’s approach stands out. 

“We’re looking at things like forced labor indicators,” said Allen. “For example, if workers are on curfews, if passports are being held, if workers are being recruited from countries outside of where they’re working, and whether or not they’re being charged recruitment fees. Those are the things we’re looking for. And we do see that, in some countries, these indicators are present.”