Ep. 115: Manufacturing & Supply Chain Award 2024

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Ep. 115: Manufacturing & Supply Chain Award 2024

In this episode Tim Li, CEO at Digital Clothing Limited and professor and chair of Textile science and Engineering Henry Li discuss Digital Clothing Limited’s Manufacturing and Supply Chain Innovation Award.

WTiN: Hi. Thank you so much for joining me today on WTiN text innovation podcast, and congratulations on your award win, please. Could you share the story behind your wing innovation and what inspired its development?

Tim: Thank you very much. So Hi. I'm Tim, the CEO of digital clothing limited so we help fashion and textile companies navigate sustainability compliance with digital product passports and drive consumer centric innovation through digitization with our fashion Big Data platform. And I'm very happy to introduce Professor Yi Li, who will introduce how we kind of came about with this innovation.

Professors Li: Hello, my My name is Professor Yi Li, founder and the CTO of digital closing limited. I'm also a professor and a chair in textile Science and Engineering at the University of Manchester. My background is in smart textiles, wearables and the Textile Supply Chain digitization. I have been very fortunate in it to collaborate with great teams and partners over the years to develop the textile technologies, solutions that have been adopted by the industry. I'm really excited to be here today to share some of our journey with you, the fashion and like FPD innovation, which is the world about, was actually originated in 2016 in Melbourne, Australia, where, when we organize A international conferences called textile, bio engineering and informatics symposium. In the conference, we invited internally, internationally, one of the experts to give plenary lectures, including professors from Europe, USA, Asia and other countries. Several professors from Europe presented their research in digital fitting, material innovation modeling and big data in fashion text industry. After listening to each other, we started, we got very excited and started to discuss potential collaborations to create a big data platform to link the whole supply chain together internationally. Then we identified a new grant call from the EU Commission, Horizon 2020, which just fits into this idea the then we actually organized and established a proposal consulting, including 12 partners like three universities, one Research Institute and eight companies from five countries, like UK, France, Italy, Germany and Sweden. We wrote a proposal called Fashion Big Data business model, which is called the FBD big model. Then we submitted to the EU Commission. Very Luckily, our proposal was rated as the top proposal. And then work closely with the project partners, we developed the FBD platform. Which was assessed by the EU Commission and our team in the University of Manchester was recognized as the number one key innovator in the project. So after obtaining the IP assignment from the University of Manchester, we decided to set up a spin out company to continue the development and the commercialization of BD platform to support the digitization transformation of this textile companies, particularly SMEs, as planned, either in the FBD model project. So that's the short story.

WTiN: No, that's great. Thank you so much, and obviously you've touched upon it. Then about building the data platform to support the supply chain globally? How? Just, how does the platform address that gap in the textile industry?

Tim: Yeah. I mean, that's a very relevant question, especially with the climate that we face today. So I think it faces a lot of serious challenges, and our platform is designed to help them actually reach these challenges ahead. So I think one of the key challenges that out there is sustainability and compliance, which has become a top priority with the fashion and textile industry. So new legislations like the espr equal design for products regulation and also growing ESG standards require companies that enter into the EU market to meet strict eco design requirements and to comply with digital product passport. So this is a significant shift, but we find that many businesses are fully prepared for it. And then there's the challenge of consumer demand for more sustainable personalized products. So meeting real time market demand and turning these insights into innovation can be tough without the right tools, particularly SMEs and supply chain management, is another key issue. So with the new espr regulations, the banned destruction of unsold goods like the fashion, tech stock companies must rethink how they manage the inventory, because overproduction is no longer just an inventory of financial risk. It has also become a compliance risk as well. And finally, we have global trade disruptions. So like what we saw during COVID 19, we have seen how fragile supply chains can be, and therefore fashion tech companies need the better visibility and adaptability to respond quickly to the unexpected challenges. And so the platform that we develop through the EU horizon project, we find actually really addresses these challenges head on, and because we were able to integrate early collaboration feedback from direct companies within the industry, were able to develop the right compliance tools that help them kind of connect the supply chain so they can manage a better improve the transparency and reduce risk to allow them to comply with the incoming EU legislations. And so this kind of, this early engagement that we had kind of really formed the foundation of the core features. And with the following projects that we received, following the EU grant, we have matured both our services as well as the technology.

WTiN: Amazing. And how have you ensured sustainability or circularity throughout your whole approach?

Professor Li: Well, we have digitized the whole supply chain, systematically in seven levels. First, we digitize the materials in terms of structure performance and their circularity as well. Then we digitize the product in terms of their structure performance and as well as secularity. Then further digitize the manufacturing process in terms of quality control, safety, environmental footprint and circularity. By link all this together, we create digital passport, digital product passport, which link to including all the quality, performance, environment, footprints, circularity, and then we create a mechanism and the techniques of digital certification to ensure all the data are true, and then has been certified by third party. Then we have further like with this information, we create personalized digital supply chain for individual companies. Then by offering this with this data, we create a real time data driving like AI services for companies to. Achieve sustainable design manufacturing and with no cost to enable such a intelligent business models.

Tim: Yeah. So in some way, like with the ESPN legislations they have, they will form these equal design requirements for different types of products. And so what we have in built into the systems is basically multi nodal digital product passport. So then there is, for instance, specific requirements regarding quality, regarding circularity, environmental footprint. So these kind of staff, these are actually based on actual standards that have been publicized. And therefore what we do is we help these companies, through digitization, gather these data and collect it within these digital product passports so that they can demonstrate the compliance with this sustainability, incoming sustainability standards as well. As you know, we have algorithms that can process these information so that they can use the digital product possible actually, for the innovation as well. For example, when functional, when designers actually choose material based on the sustainability performance or based on the functional performance of the products that they have input to through the data?

Professor Li: Yeah, yeah, in addition to their creativity and design. Okay, thank you.

WTiN: And what's you've just touched upon it then. But what sets this innovation apart from others in the market, and how do you see it disrupting the industry?

Professor Li: Yeah, actually, this is the FBD system. Has a number of unique features. First, the FBD has created beta multi scale digitizing materials from nano scale, micro scale to meta scale to create material database and product databases. Secondly, we have developed multi scale models and computational algorithms, including AI algorithms to link the database together to simulate and predict product performance, environment, footprint, secularity and the ESG footprint. Thirdly, the leftist method has been developed as an international and national standards, which has been adopted internationally, and they built into the which has built into the platform, together with existing national and international standard. Finally, we have a certification mechanism and techniques has been built into the system which make the product a digital product, passport, traceable and transparent to all the stakeholders. And all these features are very difficult to copy, and need many years of accumulation of research and the development, development of knowledge and the textile industry at the international level. So the FLDB portal will provide digital tools and the platform for fashion textile company, particularly SMEs, to cope with the key challenges and new legislation and regulation on sustainability and explore, explore the new business opportunities to establish their own digital supply chain and the new business model at a lower cost and higher flexibility.

WTiN: And winning the Innovate textile awards is a huge achievement. What does this recognition mean to you and your team?

Tim: So honestly, this recognition, recognition means a lot to us. Digital clothing limited. Our mission has always been to help fashion and textile companies prepare for the future, whether that's through digitization for compliance or consumer driven innovation, but to really make an impact, we really need the visibility in this award to help us get there. So over the past six years, since developing this project from the EU horizon project, we've dedicated a huge amount of time and effort to understanding international standards and new legislation. Our team is made up of experts who've worked on international standards that have been or will be incorporated into the ESG and ESPN legislations, and we've spent countless hours adapting our platform to meet compliance standards. We've also had deep conversation with companies to understand the workforce and how we can integrate compliance into their day to day operations. So winning this award is a validation on many levels. First, it's a great opportunity to raise awareness these regulations are still quite new, and a lot of companies aren't fully aware of what's coming. We want to help them stay ahead and navigate these challenges with confidence. Second, it builds credibility and trust, not just with companies. We work with, but with the industry at large, Trust is everything in a space like this, and being recognized in this way gives people the confidence in what we're doing. And finally, it's a huge boost for our team. You know, there have been moments where we've had to pivot and adapt the approach to meet these new challenges. And working in a field like this is a continuous learning process. So movement like this, like where we want a world, remind us why we started and gave us the extra push to keep evolving and moving forward. But more than anything, it reinforces that the work that we're doing matters, not just for the team, but for the entire industry, and we're excited to take this momentum and continue helping companies meet these challenges head on.

WTiN: That's wonderful to hear. It's fantastic innovation, and obviously it's such a big task. What you have done and what you wouldn't taken, what were the biggest hurdles that you faced while you were developing your data supply chain platform, and how did you overcome those challenges?

Professor Li: Yeah, actually, the biggest challenge in developing this platform is how to deal with the huge scope and the complexity involved in sustainable sustainability in yield and other countries which publish different like recognize regulations, legislations to do this, which involve actually digitize the performance, secularity of materials, products, the environment, footprint, secularity ESG in the manufacturing process as well, as well as the distribution and even consumption process, to quantify the impacts according to the existing standard and the new standard to be developed. So how we address these critical issues by establishing a knowledge and technology framework systematically to investigate all the relevant legislation, regulation, standards and the business models as well as information flows, And to create advanced computational ICT platform with industrial specialism based knowledge, and the databases then under the advanced model, and the databases to enable data driven AI business like a model to be realized. Okay, that's the approach we have done so far.

WTiN: And you've touched on this previously about various partners and obviously supporting SMEs. But did you collaborate with any key industry partners, institutions or brands to bring this innovation in life? Obviously, I know you've collected data from everywhere, so imagine the answer is yes. How well did collaboration go and how much did it form that final product?

Tim: And thank you. So actually, collaboration has been the heart of this project from from the very beginning. So we've been very fortunate, as you said, to work with incredible partners and institutions, and they helped not just to shape our platform, but also, you know, to shape the entire vision of what we kind of see the industry in becoming. And as we mentioned previous before, it kind of really started with the EU COVID project, which gave us that solid foundation and also the confidence to move forward. So at the very start, we really began working with partners from the France, the UK, Germany, Italy, Belgium and Sweden, including four fashion technical companies that tested and validated the platform. And this is where we got the idea of building a supply chain management system that connects the entire supply chain through a digital twin. And their feedback has led us to kind of develop the interconnected databases, identify the computational models for performance, and also API driven smart recommendation systems to help companies connect with consumers and meet compliance demands. And then so then it really helped that, you know, through this work, at the end of the project, it was recognized by the EU Commission, which kind of reassured us that we were on the right track. And later, after we obtained IP assignment rights from the University of Manchester, we injected those IPs and apply for patents into our company, which was a significant step forward. And this. And then after having it developed as impact case, we were able to work with larger companies like Unilever and beyond, who helped us refine its scalability and reward applications. And then, most recently, we won the Innovate UK grant creative catalyst, where we tried to where we could. Created a master class called Fashion big data for sustainable design, where we kind of engage with 64 participants and basically taught them about the new legislations and how we can adapt to it. And one key insight from this collaboration, or from this project, is that we understood that while many companies like SMEs are aware of these incoming legislation, that they don't know how to really comply, and therefore, the feedback help us develop further on how we can develop custom service packages and operational modules to help meet their specific needs. And right now, we're at this stage where we're taking back the feedback understanding how we can scale up our services to help the wider public, and we definitely show that we'll continue working and learning from key partners, institutions and brands as you push forward towards a more sustainable and future proof fashion in textile industry.

WTiN: Incredible, and you've just touched upon it then. But what role has customer or industry feedback played in refining the platform?

Tim: Yes, definitely. It has become an integral part and an essential part of every stage of our journey. So in the early phase of the EU project, feedbacks for partners help us identify, you know, what should be the core foundation of our technology, which is the digital twin and the interconnected database. So this is like the DNA of our platform. And so working with like larger companies, like beyond Unilever, their feedback pushed us to focus more on scalability and real world integration. So so this feedback allows us to kind of really fine tune the platform so that it can handle the complexities of the larger supply chains and will build situations. And through the Innovate UK creative catalyst master class, we received free feedback from the SMEs, which allows us to understand the diversity of different companies needs at different scales, and how to understand the problems and develop custom packages and hands on guidance to help them meet these unique challenges. So these feedback has always been a continuous driver of our innovation about because, you know, innovation is one thing, but also innovation translation to the industry is a whole nother step. So being kind of connected with the industry's challenges and adopting our services as well as our platform, is critical in scaling up and also really kind of making that impact that we want to see in our project.

WTiN: Wonderful. And I don't know whose best place to answer this next question, but what advice would you give to aspiring innovators hoping to make a mark in the textile industry.

Tim: So my biggest advice is really start by identifying the real pain points and bottlenecks in the industry, like spend the time to talk with the manufacturers, designers, supply chain management, and kind of really listen to the challenges they are facing. The more you understand the day to day struggles, the better position you'll be to creating something that addresses a real need, and innovation for the sake of innovation really works. That's what we find. You know, start by focusing on solving a problem that matters. So for us, we identified early on that compliance, supply chain, transparency and sustainability were huge challenges in the textile industry, and that companies want to innovate, but they don't have the right tools or infrastructure to adapt to these new demands, particularly SMEs. And that kind of insight shaped us in terms of everything that we've built today. Another advice is to adapt and to learn continuously, because the textile industry is evolving very quickly, especially with the incoming regulations and sustainability requirements. So what you might find works today might need to find more so continuously, collaborating, staying open to feedback, and don't be afraid to pivot when you need to. And a final advice is, don't try to do it alone. Always surround yourself with the right people. Collaborate with industry experts, institutions and companies that can help guide you, and at every stage of the journey, work with partners and listen to the feedback so that it becomes more relevant and more applicable into the industry.

WTiN: And Professor Li, how do you hope the innovation will inspire others in the industry to prioritize sustainability or creativity?

Professor Li: Yeah, we hope to make like a. Platform as a easy access and affordable digital tools for companies, particularly SMEs and developers, as well as the teachers and students to enable them to design and produce materials products, as well as running their business with understanding and as access assessment of the performance, cost, security, environment and fulfillment took under their social impact. So with all these like easy tools, they are able to, like incorporate their business and their design and creativity and to make it whatever they are doing more sustainable.

WTiN: And I feel like you both answered my final question, but I'm going to ask anyway, is there anything that you would like to add about what you would like the broader textile industry to understand about the importance of innovation today.

Professor Li: Yeah, in fact, textile clothing are essential goods for human survive, which will last forever to accompany with the humanity, and which has substantial impact on the quality of our daily life in terms of health, comfort and our living environment in short term and in longer terms, and yet the whole society should actually work together, including our daily consumption of textiles, and using textiles and clothing to reduce the energy consumption to address the environmental challenges in addition, the methodology and technology developed behind the FB department phone can be also utilized to help broader industries to develop their sustainability like a technology roadmap. So I hope that really can help this society.

WTiN: Thank you both so much for joining me today on the WTiN textile innovation podcast, and congratulations again on your award win at the WTiN textile awards 2024.

Professor Li: Thank you so much. It's nice to talk to you.