What Your Sourcing Model Says About Your Traceability Readiness

The following is an excerpt from the Traceability Roadmap, TrusTrace's step-by-step guide to implementing traceability in fashion supply chains. Read the full report here. 

How and where you start your traceability journey will determine some objectives and the success of your implementation. Working with your traceability solution provider, analyze the overall objectives to create a plan for your program launch. This will be driven by two critical factors: your sourcing model, and the quality and maturity of your master data.

We delve into the most common sourcing models, the requirements for internal readiness and realistic goals for the short term:

Cut Make Trim

The Cut, Make, Trim (CMT) sourcing model is characterized by the brand owning both the design and sourcing while maintaining control over production. When considering traceability, this model provides clear visibility up to Tier 2 suppliers, although small components like threads may not be fully tracked. Brands using this model typically have a solid understanding of around 90% of the bill of materials used in the finished product. It is a model often employed by high-end and luxury brands.

To ensure effective implementation of a traceability program, brands must confirm that their sourcing partners have the necessary bandwidth to collaborate with CMT and Tier 2 suppliers. Additionally, the internal IT team should have the capacity to handle necessary data integrations, and the business teams must allocate resources to define requirements across various stakeholders. In the short term, brands should aim to identify Tier 3 and Tier 4 suppliers and establish a clear chain of custody (CoC) from the yarn (or Tier 3 stage) to the final product.

Full Package Program with garment supplier

The Full Package Program with Garment Supplier sourcing model involves brands owning the design and working closely with Tier 1 suppliers, purchasing at a fixed cost from garment manufacturers. While this reduces the brand’s responsibility and risk, it also limits control and access to data, making it more expensive than the Cut, Make, Trim (CMT) model.

To implement traceability with this model successfully, sourcing partners and IT teams need sufficient bandwidth for data integration, and a change management team should be established to oversee the program. Short-term goals include mapping lower-tier suppliers, establishing the bill of materials (BOM), and creating a chain of custody from the fabric stage to the finished product.

Full Package Program with Agents

The Full Package Program with Agents is a sourcing model where brands outsource design, sourcing, and production to external agents. This model is frequently used by fast and ultra-fast fashion brands, either as their core approach or for specific product categories. While it reduces the brand’s responsibility and risk concerning delivery and quality, it also limits control and access to critical data.

Readiness for traceability will depend on your sourcing partners' capacity to interact effectively with agents. A change management team is crucial to navigate the transition, as this model shifts much of the risk and workload to agents—a dynamic that may evolve with greater supply chain transparency. Additionally, IT teams must be prepared to manage data integrations. Short-term objectives include mapping the supply chain through agents and establishing a bill of materials (BOM) for all products.

Implementing a traceability strategy without the support and alignment of all your key stakeholders is like building a house without a blueprint — the result is unlikely to resemble your vision or fit your needs.

The right solution for your business will emerge from discussions with internal and external stakeholders, taking into consideration the wider business goals, as well as your company’s sourcing model and data maturity. Keep in mind that this process could take months, but significant investment decisions shouldn’t be rushed. 

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