better cotton traceability requirements -...
TRANSCRIPT
Better Cotton
Traceability Requirements
© Better Cotton Initiative
What takes place in the supply chain? Placing BCI Orders - Impact
Retailers
&
Brands
Retailers
&
Brands 50% BCI 50% BCI 50% BCI
Better Cotton + BCCU
Garment Order
Yarn Order
Fabric Order
Lint Order
50% Better Cotton
50% of cotton footprint 4 the order is
now Better Cotton
Total cotton footprint 4 the order
It is not about procuring products that contain Better Cotton
It is about transforming your supply chain into a more sustainable one
Better Cotton Chain of Custody CLAIMS BY RETAILERS AND BRANDS
» For a retailer/brand to make any credible claims about the volume of Better Cotton their suppliers sourced for them, they must receive an equal number of BCCUs via BCI’s traceability system.
» 1 BCCU represents 1 KG of lint Better Cotton sourced by a spinner.
» BCCUs are transferred between suppliers using the Better Cotton Tracer.
» BCCUs can be transferred between suppliers electronically if both the “buyer” and the “seller” are in the system.
» BCCUs can be transferred to a supplier who is not in the system via a paper document called “Output Declaration Form (ODF)”.
Traceability System (Volume not Fiber) Proof = Receipt of BCCUs
BCCUs are received from suppliers and passed onto the customers as proof of Better Cotton sourcing in the supply chain Retailers and brands collect these BCCUs from their suppliers to make their total claims
Chain of custody rules provide suppliers with a set of rules that explains how fiber can be used in production and how the reporting of
BCCUs can be made
Receiving proof from vendors Traceability and documentation requirements
Ginners
Traders
Spinners
Fabric
Mills
Garment
Man.
Retailer
Ginners
Traders
Spinners
Fabric
Mills
Garment
Man.
Retailer
B
C
C
U
Ginners
Traders
Spinners
Fabric
Mills
Garment
Man.
Retailer
ODF issued by a spinner ODF issued by a fabric mill Electronic receipt of BCCUs + ODF issued by a fabric
mill
Example of Output Declaration Form
BCCU Allocation to products Calculation of BCCU allocation to yarns & other products
BCI’s traceability system uses two methods to calculate the lint volume used in spinning depending on the type of the yarn These conversion rates help the system allocate the correct number of BCCUs to yarns and other subsequent products made with
these yarns
Better Cotton
Chain of Custody Rules
© Better Cotton Initiative
Better Cotton Chain of Custody OVERVIEW
To learn more about different chains of custodies, you can refer to the following video: http://www.isealalliance.org/waypoint/chain-of-custody-and-traceability
Better Cotton Chain of Custody GIN LEVEL – PHYSICAL SEGREGATION
Better Cotton is kept physically
separate from conventional
cotton at the gin level in all
countries
100% Better Cotton Bales
Total available lint Better Cotton
globally
Better Cotton Chain of Custody MASS-BALANCE SYSTEM BASICS – AFTER THE GIN LEVEL
3 kg of Cotton Purchased
BCI Credit: 2 BCCUs
� Mass-balancing applies to bales, yarns, fabrics and garments� It allows the “natural flow” of cotton through the supply chain to
remain undisturbed
� Same Specs + Same Quality = Same Product with BCCUs
Better Cotton Chain of Custody MERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Strict middling cotton from a
BCI licensed US Grower
Middling cotton from a non-licensed
US grower
Warehouse in SC
Warehouse in TX
The rules: � Merchants don’t have to ship physical BCI
bales to spinners � BCCUs can only be transferred between bales
of the same origin
Needs middling cotton
for a BCI order
Spinning Mill in China
Strict middling cotton from a
BCI licensed US Grower
Needs strict middling cotton
for a conventional orderWarehouse in TX Warehouse in TX
Warehouse in SC
Spinning Mill in NC
Merchant ships middling
cotton to the mill
Spinning Mill in NC
And allocates BCCUs
to this shipment
Spinning Mill in NC
Mill allocates BCCUs to
yarn shipment
Spinning Mill in NC
Merchant ships physical
Better Cotton to the mill
Spinning Mill in China
Yarn spun and shipped
using strict middling
Spinning Mill in China
Better Cotton Chain of Custody MERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Supima cotton from a licensed
US Grower
Shankar 6 cotton from a non-
licensed INDIAN grower
Warehouse in INDIA
Warehouse in CA
Spinning Mill in Punjab
The rules: � Merchants don’t have to ship physical BCI
bales to spinners � BCCUs can only be transferred between bales
of the same origin
Shankar 6 cotton
for a BCI order
Warehouse in INDIA
Supima cotton from a licensed
US Grower
Warehouse in CA
Better Cotton Chain of Custody SPINNING MILLS - MASS-BALANCE W/ A SITE SCOPE
1 kg Better Cotton (Any Origin)
1 kg Conventional Cotton (Any Origin)
Better Cotton Yarn
Conventional Cotton Yarn
Better Cotton Tracer Inventory
Physical Cotton Inventory
Spinners don’t have to use the physical Better Cotton bales BCCUs can be transferred between bales of different origins
Spinner can keep their existing blend
Better Cotton Chain of Custody TURKISH SPINNING MILL
Better Cotton from Burkina Faso, Brazil,
and Turkey
Conventional cotton from
the US and Greece
Better Cotton Yarn
(Greek, BF, Turkish, US Blend)
Conventional Cotton Yarn
(Greek, BF, Turkish, US Blend)
Better Cotton Tracer
Account Inventory
Physical Cotton Inventory
Spinners don’t have to use the physical Better Cotton bales BCCUs can be transferred between bales of different origins
Spinner can keep their existing blend
Better Cotton Chain of Custody SPINNERS – MASS-BALANCE W/ A SITE SCOPE
Spinner
Better Cotton
(Any Origin; Any Specs)
Conventional Cotton
(Any Origin; Any Specs)
The rules: � Spinners don’t have to consume physical BCI bales to make the yarn
� BCCUs can be transferred to any yarns made with any fibers regardless of the country of origin of fiber used
BCI Supply Chain Team:
Lea Michalczik – BCI Traceability Systems Coordinator [email protected]
Kerem Saral – BCI Supply Chain Manager [email protected]
Direct Line: +41-22-939-1293 Skype ID: keremsaral
Manish Gupta - India Supply Chain Coordinator [email protected]
Muhammad Shuiab – Pakistan Supply Chain Coordinator
[email protected] Leo Xiao - China Supply Chain Coordinator
Seyma Karacay – Turkey Supply Chain & membership Officer [email protected]
Team Contacts Please contact any of us with your questions