Transcript Training presentation on the Better Cotton Chain of Custody

Better Cotton
Kerem Saral
BCI Supply Chain Manager
2014
1
BCI Chain of Custody & Traceability System
 Mass-balance system for all members
Concept & application & implications
 Better Cotton Tracer
 Traders
 Spinners
 Retailers
 Q&A
2
What is a Better Cotton Claim Unit?
BCCU = Better Cotton Claim Unit
» The units of conventional cotton that can be substituted for
equivalent units of Better Cotton - Due to Mass Balance
» 1 BCCU represents 1 kilo of physical Better Cotton
3
Better Cotton CoC Guidelines
Separate chapters for each actor
4
Better Cotton CoC Guidelines
Content of each chapter
» Physical Better Cotton – Physical and Mba Rules
» Better Cotton Traceability System
» Documented procedures, training and
responsibilities
» Record Keeping
» Outsourcing
» Penalties
» Material input records
» Material output records
5
Better Cotton Chain of Custody
MASS-BALANCE ADMINISTRATIVE
SEGREGATION
Chain of Custody Guidelines
Ginner Monitoring
Guidelines
Membership Code of
Practice
Retailer clients monitoring
requirements
Membership
Code of Practice
BCI membership
not required
Registered BCI
membership required
BCI membership
not required but encouraged
BCI membership
required
Trader
Farmer
100%
Seed BC
100% BC Bale
BTS
Products with associated BCCU
(Better Cotton Claim Units)
Better Cotton Tracer
No Access
Better Cotton
Tracer
Better Cotton CoC Guidelines – Gin Level
Better Cotton is kept
physically separate from
conventional cotton at the
gin level in all countries
In order to create 100%
Better Cotton Bales = Total
available lint Better Cotton at
a global level
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Better Cotton CoC guidelines - Traders
Mass-balance with Country Scope
Trader’s warehouse in Brazil
100 Kilos of
Brazilian
Better Cotton
Bales
Volume In
=
Volume out
BC
CC
BC
CC
BC
CC
Better Cotton
100 Kilos of
Brazilian
Conventional
Cotton Bales
Conventional
Cotton
Purchase declaration from ginner
+ 100 BCCUs in trader’s account
Sales declaration to a spinner
- 100 BCCUs in trader’s account & +100 BCCUs in spinner’s account
8
Trader’s Purchase Declaration
9
Trader’s Sales Declaration
10
Better Cotton CoC guidelines – Spinners
Mass-balance with Site Scope
Spinning factory in Bangladesh
Volume In
100 Kilos of
West African Bales
w/ BCCUS
Better Cotton Bales
=
Volume out
BC
CC
BC
CC
BC
CC
100 Kilos of
Indian Conventional
Cotton Bales
Better Cotton
Conventional Cotton
Purchase declaration from ginner or trader
+100 BCCUs in spinner’s account
Sales declaration to a fabric mill
-100 BCCUs in spinner’s account
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Spinner’s Purchase Declaration
12
Spinner’s Sales Declaration (Combed Yarn)
13
Spinner’s Sales Declaration (Carded Yarn)
14
BCCU Transfers
Ginners
Traders
Online BCCU Transfer
Spinners
Fabric Mills
ODF
BCCUs
Garment Man.
Physical
Document
Transfer
Retailer
LEARN
LEAD
DRIVE THE CHANGE
AMSTERDAM 2014
Better Cotton Volume Claims by Retailers
Retailer
Total claims
reported to BCI
Product with
allocated BCCUs
(indicated on
spinners’ ODFs)
Yarn with
BCCUs
BCCUs
BCCUs
Yarn without
BCCUs
Cotton
Tracer
16
Retailer and Brand BCCU Claims
Spinner’s name and # of BCCUs are taken from
the spinner’s ODF
17
Better Cotton CoC guidelines – Fabric Mills
Mass-balance with Site Scope
Fabric manufacturer in Turkey
Volume In
100 Kilos of yarn
with BCCUs
from India
=
Volume out
BC
CC
BC
CC
BC
CC
Yarn with BCCUs
100 Kilos of yarn
without BCCUs
from Turkey
Yarn without
BCCUs
Can use ANY yarn made with ANY origin of cotton
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Mass-Balance System
LEARN
LEAD
DRIVE THE CHANGE
AMSTERDAM 2014
Placing Orders with BCCUs
Retailers/Brands
Fabric Mills
Spinners
Traders
Set BC usage
target
Receive the PO
with a fixed % of
BCCU allocation to
the fabric
Receive PO from
fabric mill
Receive PO from
spinner
Calculate needed
BCCUs for the
ordered yarn
Buy physical
Better Cotton
bales from ginner
accordingly
Decide how to
spread this %
throughout
products
Set KPIs for various
departments
Ask fabric mill to
provide ODF from
spinners
Calculate the net
weight of yarn
needed
Place order with
spinner and
indicate the % of
BCCU allocation to
the yarn
Order lint
accordingly
Ship lint bales to
spinner
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Advantages of Mass-Balance 4 Spinners
» Zero wait time on bales to arrive
» Same lead time as conventional
» Flexibility in bale use
» White fabrics with BCCU
» Easy traceability
» No UBICS; easy system to use
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Thank you!
Please contact us at any time to:
Ask any questions regarding our traceability system
Your account on Better Cotton Tracer
To get a copy of this presentation
Report troubles you identified in your BC supply chain
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
[email protected]
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