Transcript BCI Supply Chain Training - Better Cotton Initiative

Better Cotton
Kerem Saral
BCI Supply Chain Manager
2014
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BCI Chain of Custody & Traceability System
 Mass-balance system for all members
Concept & application & implications
 Better Cotton Tracer
 Traders
 Spinners
 Retailers
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
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Better Cotton CoC Guidelines
Separate chapters for each actor
4
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
6
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
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Trader’s Purchase Declaration
8
Trader’s Sales Declaration
9
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
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Spinner’s Sales Declaration (Combed Yarn)
12
Spinner’s Sales Declaration (Carded Yarn)
13
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
15
Retailer and Brand BCCU Claims
Spinner’s name and # of BCCUs are taken from
the spinner’s ODF
16
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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Fabric Mill Challenge
Fabric Mill Purchases 100 MT of yarn – ODF w/ 120,000
BCCUs to fulfil multiple retailers’ orders
BCCUs must be reallocated to different fabric shipments
– Allocates 20,000 BCCUs to Retailer A
– Allocates 20,000 BCCUs to Retailer B
– Keeps the rest of the BCCUs for future orders
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Purpose of the Better Cotton Tracer
LEARN
LEAD
DRIVE THE CHANGE
AMSTERDAM 2014
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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