better cotton traceability requirements © better cotton initiative
TRANSCRIPT
Better Cotton Traceability Requirements
© Better Cotton Initiative
What takes place in the supply chain?Placing BCI Orders - Impact
Retailers &
Brands
Retailers &
Brands50% 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 CustodyCLAIMS 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 chainRetailers and brands collect these BCCUs from their suppliers to make their total claimsChain 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 vendorsTraceability and documentation requirements
Ginners
Traders
Spinners
Fabric Mills
Garment
Man.
Retailer
Ginners
Traders
Spinners
Fabric Mills
Garment Man.
Retailer
BCCU
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 productsCalculation 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 yarnThese 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 CustodyOVERVIEW
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 CustodyGIN LEVEL – PHYSICAL SEGREGATION
Better Cotton is kept physically separate from conventional cotton at the gin level in all
countries
100% Better Cotton BalesTotal available lint Better Cotton
globally
Better Cotton Chain of CustodyMASS-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 CustodyMERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Strict middling cotton from a BCI licensed US Grower
Middling cotton from a non-licensed US grower
BCCU
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 cottonfor a BCI order
Spinning Mill in China
Strict middling cotton from a BCI licensed US Grower
Needs strict middling cottonfor a conventional order
Warehouse in TXWarehouse in TX
Warehouse in SC
Spinning Mill in NC
Merchant ships middling cotton to the mill
Spinning Mill in NC
And allocates BCCUsto this shipment
Spinning Mill in NC
BCCU
Mill allocates BCCUs toyarn shipment
Spinning Mill in NC
BCCU
Merchant ships physicalBetter Cotton to the mill
Spinning Mill in China
Yarn spun and shippedusing strict middling
Spinning Mill in China
Better Cotton Chain of CustodyMERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Supima cotton from a licensed US Grower
Shankar 6 cotton from a non-licensed INDIAN grower
BCCU
Warehouse in INDIA
Warehouse in CA
Spinning Mill in Punjab
BCCU
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 cottonfor a BCI order
Warehouse in INDIA
Supima cotton from a licensed US Grower
Warehouse in CA
Better Cotton Chain of CustodySPINNING MILLS - MASS-BALANCE W/ A SITE SCOPE
1 kg Better Cotton (Any Origin)
1 kg Conventional Cotton (Any Origin)
BCCU
BCCU
BCCUBCCU
BCCU
BCCU
Better Cotton Yarn
Conventional Cotton Yarn
Better Cotton Tracer Inventory
Physical Cotton Inventory
Spinners don’t have to use the physical Better Cotton balesBCCUs can be transferred between bales of different originsSpinner can keep their existing blend
Better Cotton Chain of CustodyTURKISH SPINNING MILL
Better Cotton from Burkina Faso, Brazil, and Turkey
Conventional cotton from the US and Greece
BCCU
BCCU
BCCUBCCU
BCCU
BCCU
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 balesBCCUs can be transferred between bales of different originsSpinner can keep their existing blend
Better Cotton Chain of CustodySPINNERS – MASS-BALANCE W/ A SITE SCOPE
SpinnerBetter Cotton
(Any Origin; Any Specs)
Conventional Cotton (Any Origin; Any Specs)
BCCU
BCCU
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 [email protected]
Kerem Saral – BCI Supply Chain [email protected] Line: +41-22-939-1293Skype ID: keremsaral
Manish Gupta - India Supply Chain [email protected]
Muhammad Shuiab – Pakistan Supply Chain [email protected]
Leo Xiao - China Supply Chain [email protected]
Seyma Karacay – Turkey Supply Chain & membership [email protected]
Team ContactsPlease contact any of us with your questions