Nike and Calvin Klein collaborate to launch new project, providing solutions for the supply chain.

Well-known fashion brands such as Nike, Tommy Hilfiger, Calvin Klein, and others are planning to collaborate on a new project to track products in the global supply chain. The goal is to share data with partners while maintaining ownership of the data.

Leading Brands Collaborate on Blockchain Solution

The issue of rampant counterfeiting causes luxury brands and retailers $98 billion in losses annually, posing a significant challenge for major brands. A project initiated by fashion brands such as Nike, Tommy Hilfiger, and Calvin Klein, called the "Chain Integration Project (CHIP)," is led by the RFID laboratory at Auburn University in the United States. The project aims to utilize enterprise blockchain - Hyperledger Fabric and RFID tags to address counterfeiting issues, not only achieving a more transparent product tracking effect but also enhancing production efficiency in the retail supply chain. Companies like Walmart and Under Armour are also involved, although not in the concept verification phase.

Justin Patton, head of the RFID lab, stated:

"The project is indeed quite innovative as it offers a future vision of information exchange for the retail industry. Through the experimentation of combining RFID with blockchain technology, we have taken a significant step in our mission to eliminate additional costs and inefficiencies in the retail supply chain caused by outdated processes and legacy systems."

Blockchain Integration with RFID

RFID is a widely used identification and tracking technology across various industries. With the continuous advancement of RFID technology standards in recent years, RFID tags have become one of the tools for luxury brand manufacturers to track logistics. For example, each NIKE shoebox comes with an RFID tag that helps the company track its vast inventory. However, the drawback of this system is that different retailers store data in different ways on their tags, leading to a lack of interoperability.

Blockchain researcher Allan Gulley stated:

"It's like everyone speaking different languages. The way they send us data is completely different from another company, with no suitable universal language or platform for them to share data."

The new project "Chain Integration Project" by the RFID Lab aims to establish a universal language for these retailers and a platform that enables interoperability.

Blockchain Enhancing Supply Chains

More and more companies are integrating blockchain technology into supply chain management. Last year, New Balance, LVMH, and Coca-Cola began experimenting with blockchain solutions. The RFID Lab is planning to conduct follow-up pilot studies to clarify the financial impact of automated data exchange. However, their research results have already demonstrated the potential of blockchain combined with RFID in global supply chains. Terry Brown, North America Distribution Technology Transformation Director at NIKE, stated in a paper published in December about the project:

"We finally have the opportunity to address these issues and save billions of dollars in mystery costs in the supply chain."

Further Reading

• Optimizing supply chain workflows, Microsoft, EY, and ConsenSys building new protocols for enterprises based on Ethereum
• KPMG launches DLT supply chain tools in Australia and Japan

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