Cotton Yarn’s Impact on Sustainability

Typical Supply Chain

RetailerPhilosophyEthicsValues

Market Driven

Market Driven

Market Driven

Inconsistent resultsCustomer Loyalty at riskHigher returnsDiscounts

Focused Supply Chain

RetailerPhilosophyEthicsValues

Consistent resultsSynergies with suppliersBetter customer Loyalty Lower returnsLess discountsHigher profits

Best Practices In Yarn Formation to Yield Better Apparel

Different Cotton canResult in substantial

difference in Quality and Cost

Let’s look at the opportunities in supply chain thinking..

Assumptions

Current New Mix Breakeven

Raw Materials 0.55 0.62 0.62

Yield 1.28 1.22 1.13

Net Raw Material Cost 0.704 0.756 0.701

Conversion Cost $0.750 $0.750 $0.750

Yarn Cost $1.454 $1.506 $1.451

Key fiber properties most impact on fabric performance

Short Fiber Content Fiber shorter than ½ inch

Micronaire Fiber finess

Fiber StrengthMeasured in grams/Tex

Fiber LengthMeasured in millimeters, Upper Quartile

Mic

FSFLFQI

.

FL = HVI Fiber Length (inch)FS = HVI Fiber Strength (g/tex)Mic = Micronaire

FQI Upland Cotton ELS Cotton

Min 3.0 10.0

Max 10.0 15.0

Fiber Quality Index (FQI)

Fiber Quality Index VS Yarn Count-Ring Spun & Compact Combed Yarn

Fiber Quality Index vs. Yarn Count-Ring Spun & Rotor Spun Carded Yarns

Examples of info from Uster.com

What is the impact of better garments in land utilization?

Let’s just use one category as an example..

From http://otexa.ita.doc.gov/msr/cat339.htm

2008 Women’s Cotton Knit Tops 2008 Category 339• 2,800,116,672 Total Units• 0.5 Cotton Kilos/Garment• 1,400,058,336 Kilos of Cotton Fiber in garment• 1.50 Fiber to Garment • 2,100,087,504 Cotton Fiber Kilos required • 1,681 Kilos per Hectare • 1,249,612 Hectares Required • 4% Failure due to Fiber/Yarn

• AND THIS IS JUST ONE CATEGORY AND ONE COUNTRY!!!!

49,984 Hectares not effectively utilized

Conclusions• When offering consumers cotton products which you want to implement

sustainable practices, you must establish relationships from fiber forward.• We must work with our suppliers to improve quality and share the true

cost with retailers. Allow retailers the opportunity to accept or deny the impact on the final product price.

• Often times correct cost are not calculated because we do not assume efficiency gains along the supply chain. But, we know that every weaving, knitting, cutter, and sewing operator recognizes good quality fabric. Therefore, the factors used for risk and waste are over exaggerated.

• As a supplier, knowing that we play a major role in the success of the final product, we must continuously improve the process and increase the value the final consumer is receiving.

• We must communicate to the final consumer the value which he has purchased.