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ERP for Traceability & Compliance in Textile Industry

The textile industry’s complex ecosystem, from sourcing raw materials to delivering products, faces challenges maintaining visibility across global supply chains. With sustainability now a priority, the demand for traceability and compliance is growing. As the global textile market, valued at USD 1,837.27 billion in 2023, is expected to grow at a 7.4% CAGR from 2024 to 2030, textile companies must meet regulatory, ethical, and sustainability standards while meeting the growing demand.

Enterprise Resource Planning (ERP) systems can become an essential tool for textile companies in tackling these challenges. They can help centralize data and streamline operations to ensure traceability and compliance. Continue reading to find out how textile ERP transforms the industry.

Understanding Traceability and Compliance in Textiles

Traceability

Traceability in the textile industry refers to the ability to track the journey of a product from its raw materials to the finished good. This ensures product quality, safety, and compliance with regulations. Traceability allows companies to quickly identify and isolate affected items in case of a product recall. It also helps verify the authenticity of materials and meet ethical and sustainable standards. For example, a consumer can use traceability to determine if their cotton shirt was made from sustainably sourced cotton or if their leather jacket was produced ethically.

Compliance

Textile companies must adhere to a complex web of regulations and standards to ensure ethical and sustainable practices. Some key examples include:

  • REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals): Regulates the use of chemicals and restricts certain substances that are known or suspected to be carcinogenic, mutagenic, or reproductive toxicants.
  • GOTS (Global Organic Textile Standard): Certifies organic textiles, ensuring they meet strict environmental and social criteria.
  • ZDHC (Zero Discharge of Hazardous Chemicals): Promotes the elimination of harmful chemicals from the textile supply chain.
  • OHS (Occupational Health and Safety) Compliance: Ensures garment manufacturing facilities follow the required standards.
  • Biocidal Products Regulation: Governs the use of biocidal products in textile treatments, ensuring their safety and efficacy.
  • AZO Dye Regulation: Limits certain AZO dyes in textiles, which can release aromatic amines harmful to humans.

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