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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • Textile supply chains often include a significant presence of undisclosed and/or unauthorized subcontracting.1Business Process Analysis for Sustainability and Circularity in Textile Value Chains. UNECE, May 2022, p. 78, unece.org/sites/default/files/2022-05/E320_BPA-SVC-textile.pdf. This opacity is a barrier to traceability and due diligence efforts, so robust supply chain mapping and analysis of potential blind spots are useful initial strategies that companies can employ to understand the full scope of upstream supply chains. Some subcontracting in textile production is for home-based work, which is where much of the risk of child labor in the production of embellished textiles exists.2 Kara, Siddharth. Tainted Garments. The Exploitation of Women and Girls in India’s Home-Based Garment Sector. Blum Center for Developing Economies University of California, Berkely, January 2019, pp.5, https://blumcenter.berkeley.edu/wp-content/uploads/2019/01/Tainted-Garments-1.pdf. To enable prioritization of social risks in supply chains, traceability systems should provide insight into the types of worksites present in a company’s upstream supply chain.

Nature of Labor Rights Risk/Vulnerable Workers

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence of other vulnerable workers

Documented presence or significant likelihood of third-party labor recruiters

Features of Production and Supply Chain

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex/opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

Distribution of Labor Risk in Various Production Areas

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

Linked Upstream and Downstream Risks

Risk in Nodes in Embellished Textiles Production

Textiles supply chains are notoriously complex, characterized by extensive outsourcing, and can generally take a variety of forms.26Business Process Analysis for Sustainability and Circularity in Textile Value Chains. UNECE, May 2022, pp. 71, 79, 83-84, unece.org/sites/default/files/2022-05/E320_BPA-SVC-textile.pdf. Textile and garment companies may be horizontally or vertically integrated. Vertically integrated firms may perform some or all production processes, while horizontally integrated firms focus on the same type of production process across many different production units. Some companies are both vertically and horizontally integrated.27Theuws, Martje, and Pauline Overeem. Flawed Fabrics. The abuse of girls and women workers in the South Indian textile industry. SOMO and ICN, October 2014, p. 15, www.indianet.nl/pdf/FlawedFabrics.pdf.

Embellished textiles can be made from a variety of materials including cotton and synthetic fabrics which are then decorated with embroidery, sequins, or other ornamentation. Garment and textile manufacturing factories, also called cut-make-trim (CMT) factories, may bleach and dye fabrics and then manufacture the garments/textiles through cutting, stitching, and other processes.28Follow the Thread. The Need for Supply Chain Transparency in the Garment and Footwear Industry. Human Rights Watch, 20 April 2017, p. 1, https://www.hrw.org/sites/default/files/report_pdf/wrdtransparency0417_brochure_web_spreads_3.pdf. Value-added processing such as embellishment or embroidery may take place at the CMT factories, as well, but it is most often outsourced to small, informal workshops or home-based workshops. 29Kara, Siddharth. Tainted Garments. The Exploitation of Women and Girls in India’s Home-Based Garment Sector. Blum Center for developing Economies University of California, Berkely, January 2019, p. 51, blumcenter.berkeley.edu/wp-content/uploads/2019/01/Tainted-Garments-1.pdf. Embellishment includes many different processes, such as adding adornments with yarn and mesh. Sometimes, these adornments include the addition of accessories such as beads and sequins made of glass, plastic, or other natural resources.30Elnashar, Elsayed Ahmed. Design and Production of Beads Woven Fabric in Fashion Trends for Garments of Egyptian Origin. Journal of Textile Science & Fashion Technology, 2019, pp. 2-3, https://www.researchgate.net/publication/337716575_Design_and_Production_of_Beads_Woven_Fabric_in_Fashion_Trends_for_Garments_of_Egyptian_Origin The finished garments and textiles are then sent back to the factory for labeling and packing and are sold as clothing and household textiles to mostly European and American markets. From there, brands sell them in retail.31Follow the Thread. The Need for Supply Chain Transparency in the Garment and Footwear Industry. Human Rights Watch, 20 April 2017, p. 1, https://www.hrw.org/sites/default/files/report_pdf/wrdtransparency0417_brochure_web_spreads_3.pdf.

Fabric Weaving

Garment/Textile Manufacturing (Cut-make-trim)

Value-added Processing & Embellishment (in particular subcontracted work)

Wholesale/ Retail

Associated Upstream Goods with Labor Risk

Embellished textiles are produced with cotton and cottonseed.

Embellished textiles are produced with thread/yarn.

Embellished textiles are produced with textiles, including jute.

Embellished textiles are produced with beads, sequins and other accessories made of plastic or glass.

Associated Downstream Goods and Consumer Sectors

Textiles Apparel and Luxury Goods

Embellished textiles are used in the production of garments and accessories.

Household Goods

Embellished Textiles are used in the production of household items such as linens, curtains, and carpets.

Top Global Countries

Woven fabrics of metal thread and woven fabrics of metallized yarn

  1. France32List of exporters for the selected product in 2021. Product: 5809 Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, n.e.s. ITC Trade Map, 2021, https://www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c5809%7c%7c%7c4%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c1%7c1
  2. China
  3. Switzerland
  4. Italy
  5. United States of America
  6. India
  7. Germany
  8. Iran
  9. United Kingdom
  10. Egypt

Woven fabrics of synthetic filament yarn

  1. China33List of exporters for the selected product in 2021 Product : 5407 Woven fabrics of synthetic filament yarn, incl. monofilament of >= 67 decitex and with a cross sectional dimension of <= 1 mm. ITC Trade Map, https://www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c5407%7c%7c%7c4%7c1%7c1%7c2%7c1%7c%7c2%7c1%7c1%7c1.
  2. Taiwan
  3. South Korea
  4. India
  5. Japan
  6. Turkey
  7. Italy
  8. Germany
  9. United Arab Emirates
  10. Spain

Examples & Resources: Traceability Efforts Associated With Embellished Textiles

Footnotes