Better Initiative

Lea Michalczik BCI Traceability Systems Coordinator 2016

1 Chain of Custody Guidelines & Traceability System

The Better Cotton Chain of Custody

 Better Cotton Chain of Custody Guidelines - rules for how to deal with physical Better Cotton in the supply chain

 Better Cotton Tracer - online traceability platform used to track Better Cotton purchases and sales

2 Chain of Custody Guidelines & Traceability System

 Participants are muted

 Questions / comments in the comment box on the right side of your screen

3 Chain of Custody Guidelines

 Better Cotton Chain of Custody Guidelines - rules for how to deal with physical Better Cotton in the supply chain

4 Chain of Custody Guidelines

5 Chain of Custody Guidelines

 ggg

6 Chain of Custody Guidelines

 Better Cotton is kept separately from  In order to create 100% Better Cotton conventional cotton at the gin level Bales

7 Chain of Custody Guidelines

 ggg

8 Chain of Custody Guidelines

Mass-balance = traceability of volumes

BCCU = Better Cotton Claim Unit

» 1 BCCU represents 1 kilo of physical Better Cotton

9 Chain of Custody Guidelines

 Mass-balance administration

Company 1 kg Better Cotton

1 kg Conventional Cotton

10 Chain of Custody Guidelines

3 kg of Cotton

Credit: 2 BCCUs

11 Chain of Custody Guidelines

12 Chain of Custody Guidelines

Advantages of mass-balance administration

 Zero wait time on bales to arrive

 Flexibility in bale use

 Easy traceability

13 Chain of Custody Guidelines

 Trader: Country scope

Trader 1 kg Brazilian Better Cotton

1 kg Brazilian Conventional Cotton

14 Chain of Custody Guidelines

 Spinner: Site scope

Spinner 1 kg Brazilian Better Cotton

1 kg Indian Conventional Cotton

15 Chain of Custody Guidelines

PURCHASE INVENTORY SALE

Better Cotton from - Burkina Faso Yarn sold as Better Cotton yarn - , with bales originating from - - Greece - Burkina Faso Better Cotton Tracer Inventory - Turkey - the US

Yarn sold as conventional yarn using the bales originating from Conventional - Greece cotton from - Burkina Faso - the US - The US - Greece

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 16 Chain of Custody Guidelines

 CoC guidelines: separation at gin level, further explanation

17 Better Cotton Tracer

 Better Cotton Tracer - online traceability platform used to track Better Cotton purchases and sales

18 Better Cotton Tracer

Tracer access is optional

19 Better Cotton Tracer

• Your Better Cotton Buy Better Cotton Declare purchase in the Sell Better Cotton Your Better Cotton Better Cotton Tracer inventory goes up inventory goes down • No physical separation needed

20 Better Cotton Tracer

Your Better Cotton Inventory

Your Better Cotton Transactions

21 Better Cotton Tracer

 One party enters a transaction

 The other party acknowledges it

22 YARN SALE

Select their name Your from the drop down BCCUs automatically allocated customer IS list when you register on the Tracer the sale of fabric

Your Select ‘Manual Entry Generate Output customer IS Option’ and type the Declaration Form (ODF) NOT on the name of your through the Tracer and Tracer customer email to your customer FABRIC SALE

Select their name Your from the drop down BCCUs automatically allocated customer IS list when you register on the Tracer the sale of fabric

Select their name You DO know who from the drop down BCCUs automatically your end user is list when you register allocated the sale of fabric

Your customer IS NOT on the Tracer

Select ‘Manual Entry Generate Output You DO NOT know Option’ and type the Declaration Form (ODF) who your end user is name of your through the Tracer and customer email to your customer END PRODUCT SALE

Select their name You DO know from the drop down BCCUs automatically allocated who the end list when you register user is the sale of fabric

You DO NOT Select ‘Manual Entry Generate Output know who Option’ and type the Declaration Form (ODF) your end user name of your through the Tracer and s but selling customer email to your customer to an agent RETAILERS Depending on whether your supplier is a Tracer user or not, there are two ways of receiving BCCUs in your account’s inventory.

A) Receiving BCCUs automatically by your End Product supplier.

B) Acknowledge a transaction

C) Enter the ODF number RETAILERS Generally – when you receive an ODF, please take a look at the ‘Instructions for Retailer’ at the bottom of the page. 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

Lea Michalczik – BCI Traceability Systems Coordinator [email protected]

Kerem Saral – BCI Supply Chain Manager [email protected]

Seyma Karacay Lokmaci – Turkey Supply Chain & Membership Officer [email protected]

Manish Gupta - Supply Chain Coordinator [email protected]

Muhammad Shuaib – Supply Chain Coordinator [email protected]

Leo Xiao - Supply Chain Coordinator [email protected] 28