Introducing SGS SMART – a Revolution in Softline Supply Chain Management

Consumer CompactSoftlinesJan 21, 2025

Modern softlines supply chains are complex, spanning multiple international borders and involving numerous stakeholders. Effective management requires transparency and traceability across all tiers to ensure efficiency while meeting rapidly evolving regulations. Without visibility, brands face significant risks of non-compliance, fines, loss of goods and potential reputational damage.

The softlines industry is undergoing a significant transformation driven by evolving consumer and regulatory expectations. While safety, quality, performance and aesthetics remain foundational, a growing demand for sustainability now exists. Consumers increasingly prioritize purchasing from brands with products that are transparent about safety, durability and environmental responsibility. Brands that build their reputation on meeting these standards are seeing growth in their market share.

Reputation is crucial to earning consumer trust, with 75% of customers citing word-of-mouth as a key influence in purchasing decisions.¹ A strong brand recognition for quality and sustainability can boost sales, while a poor reputation risks eroding consumer confidence and reducing market share.

At the same time, governments are transitioning toward circular economies. The traditional linear ‘take-make-waste’ model requires significant resources and generates excessive waste, which is unsustainable. Authorities in France and the EU are responding with initiatives like France’s Anti-Waste Law for a Circular Economy (AGEC) and the EU’s New Circular Economy Action Plan (CEAN). A circular economic model focuses on designing for longevity, using, reusing and recycling, reducing our reliance on virgin materials and minimizing waste.

Barriers in a supply chain

Historically, many brands have prioritized visibility in Tiers 1 and 2 of their supply chains, focusing primarily on ensuring that operators in these tiers adhere to environmental and social standards. Maintaining oversight beyond these tiers was complicated, time-consuming and often deemed impractical.

This limited level of visibility is no longer sufficient. New regulations, such as the EU’s Due Diligence Directive, Digital Product Passport (DPP), and the US New York Fashion Sustainability and Social Accountability Act, increasingly demand comprehensive oversight, transparency and traceability. Additionally, customs requirements around raw material origins are being implemented to enforce this shift. These frameworks align with corporate commitments to sustainability, transparency, authenticity and public trust.

Achieving these goals and ensuring compliance requires full and effective transparency across the entire supply chain, from raw materials to the final product. However, challenges persist, including the sheer number of operators, supply chain complexity, and a lack of expertise and tools for traceability. The costs of achieving comprehensive oversight can be significant, and collecting reliable data at scale is often difficult. Additionally, to meet requirements like the DPP, all collected data must be verified.

To overcome these challenges, brands must ask the right questions and deploy the right solutions to find the answers.

SGS SMART – the one-stop platform for supply chain management

SGS SMART simplifies the management of product testing and inspections through a single, cost-effective, customer-focused platform that provides brands with complete control over testing parameters and laboratory selection, no matter where their supply chain operates globally. Real-time tracking of sample progress enables faster, better-informed decision-making, while advanced analytics offer deep insights into product and supplier performance, driving continuous supply chain improvements.

Modules for textile, garment and footwear supply chains, include:

SGS SMART Cares is a digital supply chain platform that focuses on chemical management, supporting the management of raw material records, chemical inventories and monthly consumption records. For Zero Discharge of Hazardous Chemicals (ZDHC) members, it also supports the generation of the ZDHC Performance InCheck Report
SGS SMART Source provides brands with end-to-end transparency. Utilizing its cloud-based digital platform, they can collect, record, query and share traceability data, reducing sustainability risks from all tiers of the supply chain
SGS SMART Knowledge keeps businesses updated with industry, market and regulatory developments
SGS SMART recall case module offers comprehensive analysis of the reasons behind product recalls across major markets and categories. This interactive tool provides detailed insights, with visually engaging horizontal comparisons across countries and regions

This suite of modules for softlines makes SGS SMART stand out in the marketplace, offering significant advantages over competing solutions. SGS SMART Source delivers unparalleled supply chain visibility, while SGS SMART Cares integrates advanced features such as chemical ingredient screening against customized restricted substances lists (RSLs) and comprehensive analytics for wastewater and supply chain performance. These capabilities provide a transformative advantage, particularly in the critical area of chemical ingredient screening. This powerful combination of traceability and analytics uniquely positions SGS SMART to address key industry challenges, delivering unmatched functionality and market insights.

As sustainability becomes a primary driver in the softlines industry, brands need to ask critical questions about chemical and wastewater management, supply chain visibility and market trends. With SGS SMART, they can confidently find the right answers.

Find out more about SGS SMART and download our SGS SMART leaflet.