Report on Supply Chain Compliance 3, no. 5 (March 5, 2020)
A major supplier of denim to global brands had extremely poor safety measures in place, which were exposed after a deadly fire raged through the factory Feb. 8, 2020. International brands immediately distanced themselves from the company, Nandan Denim, claiming they sourced little or no denim from the burned-out factory.[1]
The garment supply chain is extremely complex, however, and, since Nandan is India’s largest supplier of denim, it is very likely that Nandan products are in the supply chain that feeds global brands such as Target, Ann Taylor, Mango, Zara and Wrangler. However, Nandan may be a third- or fourth-tier supplier, selling their products to downstream buyers, who then sell them to global brands.
The deadly fire, as well as the complete lack of basic safety precautions, points out the need for companies to achieve as much transparency as possible in their supply chains to avoid such disasters and the consequent loss of life and damage to brand value.
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