Work in Progress (WIP) traceability in modern manufacturing encompasses statistical process control, Industry 4.0/5.0 integration, comparative studies on manufacturing strategies, and traceability systems, among other technologies, for continuous quality improvement. In this paper, we explore the state of the art in WIP traceability solutions for the Textile and Clothing (T&C) industrial sector, especially through the implementation of manufacturing traceability processes and computer-based multi-layered monitoring systems, integrating IoT and other technologies, such as Blockchain and Artificial Intelligence, to achieve different levels of digital transformation of industrial processes. We highlight some of the key aspects of manufacturing processes’ WIP monitoring in T&C, identify critical unsolved aspects, and suggest future research directions to bridge the gaps.