Today, digital technologies are evolving at a faster pace than ever, becoming increasingly complex and affecting more and more people. As new digital technologies dramatically reshape industries, Lenzing pursues efforts to leverage the benefits of these technologies to keep its technological advantage. Digital technologies have already optimized many operation processes at Lenzing and led to a new way of working. To further exploit opportunities, especially for emerging technologies, a dedicated Digital Innovation Function was launched in 2021.
Digital solutions leading to a new way of work
When the COVID-19 pandemic began, the Lenzing Group was able to transition to remote working within a very short space of time. The infrastructure had already been well prepared and only an increase in bandwidths and licenses became necessary. Despite the exceptional circumstances, Lenzing still made sure that all protective measures were maintained at a high level, for example, by providing handling instructions for data protection and information security at home or by applying security patches at home like it is applied in the office.
One other important process optimization has been the “Lenzing eSign” digital solution. It allows for documents to be fully signed-off using qualified electronic signatures complying with the EU’s eIDAS regulation and the UNCITRAL Convention. So far, around 900 employees worldwide are authorized to sign-off or approve thousands of documents with this intuitive and mobile tool. For example, the infrastructure is used for SAP invoicing as well as quality management report signing. This has replaced several paper-based processes, thereby almost eliminating the need to print, sign, scan and redistribute documents and contracts.
Due to these measures, remote working on a large scale has worked very well for the Lenzing Group. Human resource experts assume that many employees intend to continue working from home in the future, at least for some time. The recent developments led to framework conditions being devised to allow Lenzing employees to partially work from home even after the crisis. Remote working is likely to appeal in particular to a younger generation of employees as it allows a better balance between work and private life. Besides this social aspect, moving to a more digital working environment can also help to improve the environmental footprint. For example, the aforementioned replacement of several paper-based processes eliminates the need for printing, and thus saves valuable resources. Since the start of the pandemic, significantly more meetings have also been taking place online. Overall, remote working and more digital events are leading to less commuting and business travel, which will likely result in a reduction of CO2 emissions.
Digital solutions for transparency and traceability across entire supply chains
Beyond its ongoing digitalization processes in its own operations, Lenzing is committed to driving digital solutions throughout the supply chain. In this way, Lenzing aims to improve transparency and traceability in the textile and nonwovens industry. Transparency means openness towards the people who come into contact with Lenzing fibers. This is crucial as only an honest discussion with the industry can ensure traceability, verifying the origin of Lenzing fibers throughout the supply chain up to the finished garment.
Lenzing’s fiber identification system and E-Branding Service form the basis of its overall approach to transparency, while the TextileGenesis™ blockchain project uses the data for maximum traceability. The supply chain collaboration and planning project complements these pillars. Lenzing follows a four-pillar approach to a more sustainable and transparent supply chain:
Lenzing Group’s bulidng blocks of transparency
Fiber identification system
Lenzing has developed a technology for fiber identification. The system was successfully implemented for LENZING™ ECOVERO™ branded viscose fibers, all TENCEL™ branded fibers, TENCEL™ x REFIBRA™ lyocell fibers and the LENZING™ FR portfolio. In addition, the product brand VEOCEL™ launched the beauty industry’s first fiber identification system for LENZING™ Lyocell Skin, LENZING™ Lyocell Fine Skin and LENZING™ Lyocell Micro Skin fibers in the reporting year.
The technology for fiber identification relies on the physical identification of fiber origin at different stages of the product such as the fabric and garment stage. This enables full fiber origin traceability and counterfeiting protection. It thus protects the brands and retailers by providing assurance that their products do not contain fibers made from wood from controversial sources. This guarantees that the fibers are produced in state-of-the-art-production facilities that meet high standards for resource efficiency and environmental and social responsibility.
Supply chain transparency through the Lenzing E‑Branding Service
Many consumers know that not all textiles offered on the market are produced in an environmentally conscious and socially sustainable way. Given the complexity of supply chains, they depend on information on the packaging or label to make informed decisions.
Ingredient branding to communicate raw material sustainability
Lenzing has adopted an ingredient branding approach in which it collaborates with brand partners in the value chain who convey the valuable properties of the fiber to the end consumers. Retailers, in turn, need supply chain partners who can positively support them in communicating a believable and consistent sustainability story. Lenzing has seized this opportunity with its branding platform.
E-Branding Service
Since the launch of the E-Branding Service in 2018, the number of applications for licenses and swing tickets processed by the E-Branding Service Team has grown by more than 60 percent every year. Even in a very challenging pandemic year, the TENCEL™ and LENZING™ ECOVERO™ brands still managed to grow their combined license product base by 20 percent from 2020 to 2021.
The Lenzing E-Branding Service is an online platform that provides customers along the value chain with access to Lenzing’s product brands.
Registered Lenzing textile partners can apply for fabric certifications, license agreements, or Lenzing labels. Lenzing nonwoven partners can also register and apply for combined certification and license agreements. In addition to the supply chain disclosure, certification also includes fabric testing by Lenzing, i.e. only fabrics that really meet the defined standards are accepted.
After acquiring the license to use the requested Lenzing brand on the final product, partners may use the associated product logos in their communications to the end consumers. Ready-made Lenzing labels can also be provided to identify the product on request.
In addition to enabling end consumers to make conscious purchase decisions, the platform aims to protect the Lenzing brand portfolio (TENCEL™, LENZING™ ECOVERO™, VEOCEL™, TENCEL™ x REFIBRA™). It helps Lenzing and its partners defend the brands against counterfeiting and assures the end consumers that the product is exactly what the label promises.
Target groups for the Lenzing E-Branding Service are all partners along the value chain, starting with direct customers (i.e. those who buy Lenzing fibers) to fabric/roll-good manufacturers/converters and manufacturers of the end products, to retailers who ultimately position the goods at the point of sales including online stores.
For all partners along the value chain
- Informed decisions for end consumers
- Service for the supply chain partners
- Transparent communication in complex environments
- Minimized risk of brand counterfeiting
- The product is exactly what the label promises
Supply chain collaboration and planning
Lenzing’s supply chain collaboration and planning project is about generating a digital image of its extended supply chain, enabling end-to-end planning, agility, and responsiveness with the objective of reducing material and environmental impacts. Although the project is still in its development phase, Lenzing believes that the project – armed with the right partners, connectivity, control, autonomy, and a spirit of collaboration – will drive supply chain transparency.
Downstream value chain track and traceability via blockchain technology
Building on several successful pilot projects in 2019 with the innovative start-up TextileGenesis™, Lenzing introduced a digital platform for textile supply chain traceability in 2020 – a milestone for the Lenzing Group. The digital platform was launched in November 2020 for TENCEL™ and LENZING™ ECOVERO™ branded fibers.
TextileGenesis™
TextileGenesis™ is a pioneering supply chain traceability platform for the fashion and textile industry that is enabled by blockchain technology. Fibercoin™ traceability technology creates real-time digital accounting of sustainably produced fibers along the entire supply chain from fiber to retail, creating an entirely new level of traceability for brands and retailers. The platform is custom-built for all sustainably produced fibers such as wood-based cellulosic fibers, wool, recycled polyester, and organic cotton.
The platform provides customers, partners, and consumers with an overview of the entire textile supply chain. Supply chain traceability has become a top priority for apparel and home textile brands. Lenzing’s new blockchain-enabled supply chain traceability platform supports the entire supply chain in meeting increasing demands for transparency and sustainability.
Phased onboarding and new digital certificates
After conducting a twelve-month pilot program and field trials with four well-known brands (H&M, ArmedAngels, Mara Hoffman and Chicks) and supply chain players from ten countries in three regions, Lenzing has successfully implemented its blockchain-enabled supply chain traceability platform and has integrated hundreds of supply chain partners into the system.
Lenzing’s supply chain partners in South Asia (India, Bangladesh, Pakistan and Sri Lanka) completed the onboarding process in 2020 as part of the first phase. Since then, 670 supply chain partners have completed the program, enabling full supply chain traceability from fiber to production and distribution.
TextileGenesis™ platform: Fibercoin™ technology to ensure traceability along the supply chain
By using innovative Fibercoin™ technology in the TextileGenesis™ platform, Lenzing and other brand partners can now issue digital tokens (blockchain assets) in direct proportion to the physical shipments of TENCEL™ and LENZING™ ECOVERO™ branded fibers. These digital tokens provide a unique “fingerprint” and authentication mechanism, preventing adulteration, providing a more secure and trustworthy, digital chain of custody across the entire textile supply chain, and, most importantly, ensuring the materials are sustainably produced.
