South Korean apparel manufacturer ShinWon is expanding the use of artificial intelligence and blockchain technology to strengthen supply chain transparency and improve the traceability of raw materials as global regulatory requirements for environmental and social responsibility become more stringent.
The company’s latest initiative comes as international regulations, including the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and Digital Product Passports (DPPs), place greater emphasis on verifying the origin and movement of materials throughout global supply chains. To address these evolving requirements, ShinWon has deployed Retraced, a blockchain-based platform designed to monitor supply chain data from raw material sourcing through production.
ShinWon has implemented a blockchain-powered traceability platform integrated with artificial intelligence to improve visibility, verification, and monitoring across its global apparel supply chain.
The platform combines blockchain technology with AI-driven analytics and verification modules to automatically collect, analyze, and validate transaction records at every stage of the manufacturing process. By identifying errors and inconsistencies early, the system is intended to improve data accuracy while providing decision-makers with more reliable information for operational planning.
Blockchain technology also creates an immutable record of supply chain activities, providing an auditable history of transactions that can be reviewed by the company and its stakeholders. The digital record is designed to strengthen accountability while supporting compliance with increasingly demanding sustainability regulations.
AI Improves Material Verification
ShinWon reported that its digital transformation efforts have significantly improved visibility into key procurement activities, particularly raw material receiving and yarn sourcing. Under the new system, suppliers are required to submit sourcing plans through an AI-powered platform before production orders begin.
This process enables the manufacturer to identify where raw materials originate and where fabrics undergo processing, allowing the company to detect potential supply chain risks before manufacturing starts. Early identification of sourcing issues is expected to improve production planning while helping mitigate operational and compliance risks.
The AI-enabled platform requires suppliers to submit sourcing plans before production, enabling ShinWon to verify material origins, monitor processing locations, and identify potential risks at an early stage.
Beyond meeting regulatory expectations, ShinWon indicated that the expanded visibility is intended to strengthen long-term relationships with suppliers. The company evaluates business partners using multiple performance indicators, including production speed, sourcing practices, cost competitiveness, and operational efficiency.
According to the company, these assessments enable more customized support for suppliers while encouraging stronger collaboration throughout the manufacturing network. The approach is intended to improve overall supply chain performance while promoting greater transparency between suppliers, manufacturers, and global apparel brands.
Supporting Global Compliance Goals
Chief Executive Officer JJ Park stated that supply chain traceability has evolved beyond a regulatory obligation and has become an essential capability for building trust among material suppliers, apparel manufacturers, and international brands. He indicated that ShinWon intends to continue expanding supply chain visibility through AI and digital technologies while working toward achieving fully traceable raw materials across its operations.
The latest initiative follows the company’s announcement last month that it would accelerate the adoption of artificial intelligence throughout its international manufacturing facilities. That broader strategy aims to improve supply chain responsiveness, operational efficiency, and transparency across global production networks.
The initiative reflects ShinWon‘s broader strategy of combining blockchain and AI technologies to achieve fully traceable raw materials while strengthening compliance, supplier collaboration, and supply chain resilience.
As apparel manufacturers face increasing pressure to demonstrate sustainable sourcing practices, ShinWon’s investment in blockchain-based traceability and AI-driven verification underscores the growing role of digital technologies in helping companies meet regulatory standards while improving operational oversight and supply chain integrity.
