Digital Transformation of Bangladesh’s Leather Supply Chain : A Case Study of the LeatherTrace Traceability System

Bangladesh’s leather and footwear sector is a major contributor to national exports but has long faced challenges in demonstrating transparent and verifiable sourcing across its value chain. Fragmented supply chains and paper-based documentation systems have limited the industry’s ability to provide credible evidence on raw material origins, production processes and sustainability practices. For instance, traceability gaps persist at the upstream level, where raw hides are often not linked to identifiable slaughterhouses or livestock origins, while the presence of multiple, informal intermediaries obscures chain-of-custody information. These challenges are further exacerbated during peak collection periods such as Eid al-Adha, when high volumes, inadequate preservation practices and weak documentation systems lead to both quality deterioration and data loss. As global buyers and regulatory frameworks increasingly require end-to-end traceability, the sector must adopt reliable digital systems to maintain competitiveness and access to international markets. In response, the Traceable and Circular Leather Production (TCLP) Project in Bangladesh introduced LeatherTrace, a cloud-based, centralized digital e-traceability solution is developed by LeatherTrace Bangladesh project team. The platform captures and links supply chain data from raw hide sourcing and collection centers to tanning, manufacturing and finished product export, creating a secure, QR-enabled digital record across the leather value chain. As part of the project’s initial engagement process, a Project Briefing and Planning Event was organized to introduce the initiative and engage key industry stakeholders. The event brought together a pilot group from our 16 partner industries (11 tanneries and 5 footwear and leather goods manufacturers), providing a platform to discuss traceability, sustainability and collaborative approaches for strengthening the leather value chain. During the event, a formal stakeholder agreement was concluded with the participating partner industries, with all representatives signing the agreement to confirm their commitment to the project and its pilot activities.