Certifications Necessary at This Point, but They Are Indeed Not Perfect

The tex.tracer team is made of fashion experts on a mission. The Amsterdam-based company has been building a blockchain-powered transparency platform, allowing users to unlock relevant supply chain information. Co-Founder Jolanda Kooi talks about changing the industry from within, one step at a time.

Long Story, Cut Short
  • tex.tracer supports brands and retailers to collect product insights from primary source, capture the data in the blockchain and combine this with time and geolocation tagging as well as peer-to-peer reviews.
  • tex.tracer is partnering with platforms that collect worker details so that it can connect with factory workers to understand (and improve) their social standards, linking truly all stakeholders in the supply chain.
  • On the supplier side, the platform has a simple architecture so that suppliers, large and small, can be part of the transparency community.
Each supply chain partner uploads product data, pictures and documents in the tex.tracer web-app. Using this encrypted time-stamp and geo-location data, tex.tracer checks and verifies whether all uploaded information is produced at the claimed time and location. Peer-to-peer reviews add in an additional check to guarantee that the uploaded details are also backed by the next supply chain partner.
Keeping a Check Each supply chain partner uploads product data, pictures and documents in the tex.tracer web-app. Using this encrypted time-stamp and geo-location data, tex.tracer checks and verifies whether all uploaded information is produced at the claimed time and location. Peer-to-peer reviews add in an additional check to guarantee that the uploaded details are also backed by the next supply chain partner. tex.tracer

Transparency can mean different things to different people, and aspects about transparency too change over time. What did you think of transparency when tex.tracer was launched? Is your understanding about transparency more refined, more streamlined today?
Yes indeed, my understanding has evolved. Transparency is a wide topic. The transparency of my focus is supply chain and product transparency. In fact, we not just work on transparency, but also traceability. The difference between these two? Whereas transparency focuses on mapping the whole supply chain, traceability looks at individual batches of components or purchase orders as they progress through the supply chain.

All traceability issues today seemed to be hinged on supply chains. How do you see these things playing out? Traceability also means that a lot of skeletons can come tumbling out. Therefore, where do you see the maximum resistance coming from?
When we started in 2019, the supply chain partners were not all that eager to cooperate. This is changing though, as more and more suppliers see that transparency is an important factor to futureproof one’s business.

How much are brands/retailers (at one end of the chain) able to enforce traceability mechanisms? Or, do you think this works best when the entire process is written unto law / legislated?
Larger brands and retailers can enforce traceability of their suppliers, but this is harder for smaller players. So, although I value the need for transparency without it being directed by governments—as I know that it can benefit all stakeholders in the supply chain to be able to get supply chain insights—I also know that laws and regulations will create a level-playing field which is beneficial as all actors are then required to comply.

Beyond a point, traceability might not mean much if end-consumers do not care about scanning that QR code to see where their garment came from and what went into producing it. What is your personal experience about how consumer awareness about the subject is changing?
The percentage of consumers interested in product information is small, but growing. Greenwashing is an issue which consumers are no longer accepting—only last month, Decathlon and H&M were fined by the Dutch Authority Consumer Market for unclear sustainability claims. This is why we support brands and retailers to collect product insights from primary source, capture the data in the blockchain and combine this with time and geolocation tagging as well as peer-to-peer reviews. As a result, brands and their consumers can act based on the truth and nothing but the truth.

The garment industry is complex and opaque as there are many steps involved with trading companies in between, as raw materials are difficult to authenticate, and as the industry is not technology-driven and some of the involved parties are small, with piece embroidery workers working from home.

Jolanda Kooi
Co-Founder
tex.tracer
Jolanda Kooi

For traceability to deliver what it is ideated for, it will have to work across borders. How can consumer awareness in Europe (which together is almost half the population of India) have a cascading effect in, say, India? Do you foresee something of a digital divide building up?
It is just a matter of time before a growing group of Indian consumers will also be asking for the same information. Moreover, on the supplier side, we build our platform with simplicity in mind so that suppliers, large and small, can be part of our transparency community. They can create a free account to share company and product details. Added to that, we are partnering with platforms that collect worker details so that we can connect with factory workers to understand (and improve) their social standards, linking truly all stakeholders in the supply chain.

How does the process work at tex.tracer? Could you give us an idea how it plays out once a potential client approaches you for a solution? How long does it take? Not everyone understands blockchain. So, how do you make it work, especially for people who are farthest in that supply chain?
Brands start with inviting their Tier 1—mostly confectioning—suppliers to create a free tex.tracer account. Then, we assist these Tier 1 suppliers to assign suppliers to each step in the supply chain of a product. The product insights are collected from primary source—those suppliers. The data is captured in the blockchain, which creates immutable data. We combine this with time and geolocation tagging as well as peer-to-peer reviews. As a result, brands, suppliers and their consumers can act based on the truth and nothing but the truth.

In a recent podcast, you speak of how complex it can be for garment players (given that they can have seasonal supply chains) compared to say a crockery producer. What are the challenges that you have faced while working on such projects?
The garment industry is complex and opaque as there are many steps involved with trading companies in between, as raw materials are difficult to authenticate, and as the industry is not technology-driven and some of the involved parties are small, with piece embroidery workers working from home. 

Certifications have been under a cloud, and not everyone believes the certification tags anymore. How do you see traceability platforms working in such a context? Do you see the two working at cross-purposes?
Certifications are necessary at this point, but they are indeed not perfect. We know that the future increasingly allows for self-regulation and we are adding more data points in the tex.tracer platform to allow this change to happen.

Subir Ghosh

SUBIR GHOSH is a Kolkata-based independent journalist-writer-researcher who writes about environment, corruption, crony capitalism, conflict, wildlife, and cinema. He is the author of two books, and has co-authored two more with others. He writes, edits, reports and designs. He is also a professionally trained and qualified photographer.

 
 
 
  • Dated posted: 4 October 2022
  • Last modified: 4 October 2022