Digitalization and AI: transforming the fashion and luxury supply chain

Summary

Supply chain digitalization and the integration of Artificial Intelligence (AI) have become essential levers for companies in the textile and fashion sector. Faced with increasing regulatory requirements (AGEC law, environmental labeling, digital product passport) and economic and environmental pressure, this article explores how traceability, data management, and AI can transform the upstream supply chain into a strategic and predictive tool.

The different chapters:

A DEMANDING CONTEXT

Fashion at a turning point

The fashion industry is undergoing a period of intense transformation. Brands must balance economic performance with environmental responsibility, while complying with strict and evolving regulations. The main issues encountered are:

the fragmentation of systems around the Supply Chain and the multiplicity of data formats.
lack of real-time visibility into Tier 1-3 suppliers.
economic pressure forcing us to optimize costs and inventories without sacrificing agility.

As Anne Vallier, a consultant specializing in the transformation of the product value chain, points out, these challenges require a profound transformation and digitalization of the upstream supply chain to remain competitive.

TESTIMONIALS AND EXPERTISE

Presentation of the speakers

Anne Vallier : renowned consultant in the French ready-to-wear sector, specializing in the transformation of product value chains.
Patrick BOURG : expert in change management and digitalization of the Supply Chain, director of operations, publisher of the e-SCM Solutions platform.
Pantxika OSPITAL : Circularity expert in the textile and fashion industry, Bali Chair

Each speaker shared insights on the importance of reliable data, traceability and AI to transform the Supply Chain into a strategic tool.

TRACEABILITY AND DIGITALIZATION

Digital at the heart of the supply chain

Traceability is no longer just a regulatory or CSR issue. It allows us to:

Secure supplies and anticipate risks.
Optimize costs and limit unsold items or delays.
Transforming a reactive chain into a predictive and collaborative chain.

Here is a concrete example with the Chantelle Group:
By digitizing its upstream Supply Chain via a collaborative platform, the group has made supplier receptions more reliable, reduced delays by 30% and optimized cash flow.

Impact on teams:

Internally: better flow of information between Purchasing, Production, Quality, CSR and Finance.
Externally: partners have real-time access to information, reducing emails and data dispersion.

CHALLENGES OF DIGITALIZATION

Towards a data-driven culture

One of the main challenges is collecting accurate and reliable data. Companies must implement robust systems to ensure data integrity throughout the supply chain.

The transition to a data-driven culture requires a mindset shift within organizations. Teams must be trained and made aware of the importance of data collection and use.

Digitalization requires significant investments in appropriate technologies. Companies must assess their needs and choose solutions that integrate effectively with their existing processes.

Digitizing the upstream Supply Chain allows:

- A source seizure by suppliers.
- Standardized, auditable and usable data.
- Easier regulatory compliance and a marketing advantage for brands.

REGULATORY FRAMEWORK IN FULL CHANGE

To ensure compliance and competitiveness

French and European regulations require increased traceability and precise reporting:

AGEC Law : geographic traceability, environmental information, SVHC substances, recycled materials.
Environmental display : environmental score mandatory from 2025.
CSRD & CSDDD : ESG reporting and duty of care.
DPP (Digital Product Passport) : Product QR code with traceability data, mandatory for textiles from 2028.

These obligations make data control a strategic tool for ensuring compliance and competitiveness.

AI & SUPPLY CHAIN

A transformation tool

Unlike generative AI, predictive AI allows:

risk prediction : logistical delays, material shortages, quality defects.
scenario optimization : simulation of production shifts and planning of alternatives.
automation of repetitive tasks : document processing and reconciliation of supplier data.

Here's a concrete example: The upstream procurement management platform, e-SCM Solutions, offers an Supplier Invoice . It automates the control of purchase invoices and eliminates manual entry. This accelerates discrepancy detection and facilitates the resolution of supplier disputes. Productivity gains and a smoother payment process generate immediate ROI.

FAQ - DIGITALIZATION & AI

1. Why digitize the upstream Supply Chain?

To centralize and make data more reliable, secure supplies, anticipate risks and improve overall performance.

2. What are the benefits for internal teams and partners?

Teams work from a single source of information, reducing errors and delays. Partners can enter their data directly, simplifying collaboration.

3. How does AI improve driving?

It predicts risks, suggests alternative scenarios and automates repetitive tasks, making the Supply Chain more agile and proactive.

4. What regulations impact traceability?

AGEC law, environmental labeling, CSRD, CSDDD, Digital Product Passport, and requirements related to ecodesign.

5. What indicators should be monitored to measure effectiveness?

Supplier compliance rate, return rate, quality audit score, average lead time, safety stock coverage, supplier ESG score.