By Dipali Goenka
The climate impact of the textile industry is set to increase by 49% by 2030 if current supply chain trends continue, necessitating a fundamental change in the current processes, says the ‘Sustainability and Circularity in the Textile Value Chain’ report by the United Nations Environmental Programme (UNEP). Standing at the threshold of a digital revolution, supply chains across industries are improving, propelled by data analytics.
At the heart of this transformative journey is the Indian manufacturing market, projected to reach a staggering $244.50 billion in 2023, exhibiting an impressive expected compounded annual growth rate (CAGR) of 8.36% from 2023 to 2028. Leveraging predictive demand analytics, this growth underscores the pivotal role of data analytics in evolving supply chain dynamics by eliminating redundancies and addressing critical challenges like the lack of real-time visibility, inventory inaccuracies and
uncertain demand patterns in supply chains.
A recent study by McKinsey and NielsenIQ revealed that products focused on environmental, social, and governance (ESG) principles have outperformed expectations, signaling a consumer-driven shift toward sustainability. In the past five years, ESG-focused products have grown significantly, accounting for 56% of total growth, 18% above expectations. However, businesses encounter challenges like fluctuating demand and inefficient inventory management, which are compounded by unforeseen disruptions, such as the current geopolitical tensions in the Red Sea region and the ‘black swan’ COVID-19 event, posing threats to sustainability initiatives.
Addressing these challenges is essential, especially with India’s data analytics market poised to grow from $2 billion, and projected to reach $16 billion by 2025. Predictive analytics and real-time data insights have become vital in devising alternative supply chain strategies, crucial for maintaining business continuity in the face of unexpected disruptions. The integration of emerging technologies such as blockchain and the Internet of Things (IoT) holds the power to transform the supply chain by ensuring transparent, traceable transactions, monitoring and optimising processes, promoting environme- ntal responsibility.
Data analytics isn’t just a background tool; it is central to collaborative decision-making process among suppliers, promoting a system with shared insights acting as a vital tool in environmental sustainability efforts for ‘going green’. We can expect a surge in artificial intelligence, machine learning, and blockchain integration in supply chains, resulting in enhanced efficiency and resilience.
While optimistic, realising the full potential of data, insights, and analytics requires intent and commitment to ethical and environmentally-conscious practices. After all, the true promise of an advanced supply chain lies not just in the data collection but in its purposeful application toward a more sustainable and resilient future.
The author is CEO & MD,Welspun Living
