KAYO&KATO and IBM to develop Blockchain Network for Fashion Industry

KAYO&KATO has now partnered with IBM to develop a Blockchain network for traceability in the supply chain for clothing.

The newly introduced blockchain network is intended for the fashion industry. The network will help document and trace the textile supply chain such as identifying the origin and the location where the fabrics were processed along with insights into each production and distribution step, notes the announcement.

Director of Blockchain, IBM, Christian Schultze-Wolters, said, "Blockchain technology is a catalyst for collaboration and transparency across industries and within supply chains. Blockchain technology today is being used to help increase visibility and agility in supply chains in industries, including automotive manufacturing, mining, electronics production, and even the cultivation and distribution of many types of food. By creating shared visibility, technology helps foster trust among companies and their suppliers, businesses, and especially their consumers. We want to set an example within the industry and offer other companies the opportunity to join us in advancing development and helping to create solutions for the supply chain."

Co-founder and Managing Director of KAYA&KATO GmbH, Dr. Stefan Rennicke, said, "The advancement of sustainability and digitization is crucial to our forward-looking approach. This project combines both aspects in an excellent way by promoting supply chain transparency. For KAYA&KATO, there are multiple compelling reasons to initiate the development of a blockchain network, and we look forward to implementation and eagerly await the first solutions in cooperation with IBM."

The platform will help to enhance transparency among customers with the information about sustainability practices involved in the product which they are purchasing.

The project is being supported by the German Federal Ministry of Economic Development.

KAYO&KATO initiative responds to an increasing demand from the clients to understand the environmental effect of their purchasing behavior.

IBM Blockchain allows the KAYO&KATO customers to identify the origin of the fabrics, how they are processed, and gain further insights into the distribution and production.

The use of blockchain to certify sustainability will create a permanent and traceable record of the origin of materials and builds trust in production quality.