Up Close is Sourcing Journal’s regular check-in with industry executives to get their take on topics ranging from personal style to their company’s latest moves. In this Q&A, Shameek Ghosh, CEO and co-founder of traceability technology firm TrusTrace, discusses why he got into the fashion business and how his company is helping brands meet growing regulatory demands.
Name: Shameek Ghosh
Title: CEO and co-founder
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Company: TrusTrace
Which other industry has the best handle on the supply chain? What can apparel learn?
The unfortunate reality is that most industries are struggling to foster responsible and sustainable supply chains. The primary reason for this challenge is that in the last three to four decades, supply chains have become increasingly globalized, making it more difficult than ever for brands to get a handle on them. Fragmented, sprawling and with little to zero supply chain visibility, it’s been a daunting task that most industries haven’t taken on. That said, the electronics, automotive and pharmaceutical industries have shown the most willingness to implement new procurement processes and IT tools to decode supply chain complexity.
For example, RFID tags and blockchain technology have helped to improve supply chain visibility in these industries. They’re also all highly regulated, while the fashion industry traditionally has not been. Compliance requirements have forced companies to track their supply chains to ensure they are meeting specific standards and guidelines. These regulations have been developed over time, and companies in these industries have had to adapt and comply with them.
How would you describe yourself as a consumer?
I consider myself a consumer loyalist. I find a brand or product I like and stick with it. And since we founded TrusTrace in 2016, I’ve definitely made an effort to shop more sustainably. It’s important for me to practice what we preach at our company.
As a consumer, what does it take to win your loyalty?
Good quality and honest presentation. By quality, I of course mean something that’s made to last, but that also applies to material sustainability. I prefer to purchase from brands that use sustainable materials in their products, and that goes hand-in-hand with my desire for honest presentation. Where possible, I want to know what goes into the product, along with its environmental and social impacts. I love brands who are transparent about how they are making the world a better place.
What’s your typical work (or weekend) uniform?
I love jeans, so I generally keep it casual with jeans and a T-shirt, cotton sweater or sweatshirt. On weekends, the wear is also casual, but I add a bit more color. I love shoes, so I’m probably guilty of buying more pairs than I should.
Who’s your style icon?
I don’t really have a “style icon.” Prior to TrusTrace’s founding, I spent years as an IT professional and didn’t consider myself a fashion guru. I did, however, have a keen understanding of fashion’s environmental impact.
It was on my doorstep in Coimbatore, India, the country’s textile capital, a city where unregulated dyeing factories and textile manufacturers were contaminating local rivers and air, impacting the health of citizens and degrading the water and soil quality. That’s why I got into fashion, as part of a deeply personal mission to tackle the inequality, waste and environmental degradation caused by the lack of transparency in the trillion-dollar fashion industry.
What’s the best decision your company has made in the last year?
We recently installed solar panels to meet the energy needs of our largest employee base in Coimbatore, India.
How would you describe your corporate culture?
At TrusTrace, we’re purpose-driven. Our goal is to bring supply chain transparency to brands who really want to know what they sell and for consumers who really care what they buy. That serves as the guiding principle for everything the company does, from the platform we’ve developed to the brands we partner with.
We have a shared set of values that challenge the status quo to bring about a fundamental change—to make every person in the supply chain aware of their responsibilities. We want to help brands understand the true cost of manufacturing, selling, buying, disposing of material, etc.
We’re also impact-oriented, with the belief that our company can be a force for good in the world. Our business strategy aligns with our commitment to creating positive social and environmental change.
Finally, we consider ourselves to be agile problem solvers, quickly adapting and responding to changing market conditions, customer needs and internal challenges.
What can companies learn from the pandemic?
The Covid-19 pandemic underlined the importance of a robust and resilient supply chain that works despite all circumstances and is capable of ensuring access to a sufficient goods supply for consumers. In addition, it made us acutely aware of the interrelations between our health, ecosystems, supply chains and consumption patterns. This is why all players in the supply chain, regardless of size, need to establish a traceability system.
What should be the apparel industry’s top priority now?
Compliance. We’re seeing an emerging patchwork of global regulations designed to address the sustainability deficits intrinsic to complex, global supply chains.
We’ve seen such regulations have a positive influence. In the United States, the Uyghur Forced Labor Prevention Act (UFLPA) has successfully pushed companies to formally account for responsibly sourced materials in their supply chain. In France, the Anti-Waste for a Circular Economy Law (AGEC), which just went into effect, means clothing companies need to tell consumers how much of a product is made of recycled materials and where it came from.
Many other regulations, such as the Transparency in Supply Chains Act in California and the Supply Chain Due Diligence Act in Germany, will also force companies to operate more sustainably and prove it.
What keeps you up at night?
The challenge ahead for fashion companies to achieve 100 percent sustainable and circular products and the potential implications if this change isn’t made.
What makes you most optimistic?
I’m optimistic that a growing number of fashion industry stakeholders are working towards sustainable products for the betterment of the planet.
Tell us about your company’s latest product introduction:
Given the new regulations I mentioned earlier, over the next few months, we’ll roll out a new compliance module that’s specifically designed to ensure brands are adhering to region-specific laws and regulations.
