INDITEX PRODUCT HEALTH AT A GLANCE
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1 PRODUCT HEALTH AT A GLANCE 10th Ekoteks Symposium Istanbul, May 3rd 2017
2 INDITEX Product Health Programs Throughout Its Supply Chain The List by INDITEX Ready To Manufacture (RTM) Green To Wear (GTW) Picking Program RCA Audits R&D Collaborations
3 INDITEX Product Health Standard: Introduction to Clear To Wear (CTW) Product health standard: Based on the most restringent product health legislations wordwide. Regulates and/or restricts different families of chemicals (19) or parameters (6) related to the use of chemical products in all INDITEX productions with the aim of protecting customers s health. Arilamines * Dyestuffs * Pigments Formaldehyde * Chemicals for Printing Heavy Metals * Buttons * Zippers Fiber Composition * Composition Tolerances Colour Fastness ph * Auxiliary Products
4 INDITEX Product Health Standard: Clear To Wear (CTW) Scope Raw Materials Spinning Weaving Wet processes Stitching Final Article
5 INDITEX Product Health Programs: REACTIVE Programs BEFORE Production Pre-Production Program DURING Production Picking Program RCA Audits AFTER Production Control at distribution centres Same implementation level in all INDITEX brands
6 INDITEX Product Health Programs: REACTIVE Programs: During Production Picking Program DESCRIPTION: Individual chemical risks allocation for every single article produced by INDITEX. Random sampling of a determine number of samples once production reaches a specific level and shipment to local lab. OBJECTIVE: Early detection of potential CTW no compliances before production is finished and sent to INDITEX. Production Start Picking Visits Tests Production End
7 INDITEX Programs: REACTIVE Projects Root Cause Analysis (RCA) Audits DESCRIPTION: Technical audits carried out by experts in textile/leather sector once a detection/ctw no compliance is detected by Picking project OBJETIVE: To determine the source of the detection/ctw no compliance to prevent it in the future Issues To Be Checked: Facility capacity Machinary available Manufacturing process Manufacturing process récipe Chemical products involved Outcomes: Analytical results of the Chemicals involved Conclusions about the source of the problem Recommendations 365 RCA Audits > Chemicals Tested
8 Sustainability and Product Health & Safety Programs: Proactive Programs DESCRIPTION: Investment in different programs to improve the technical capabilities of the supply chain and consequenly, its sustainability by the reduction of: CTW non compliances: o Due to the comsumption of more resources (raw materials, energy, chemicals, etc.) o Due to production rejections Manufacturing costs Manufacturing times PROACTIVE Programs REACTIVE Programs
9 INDITEX Product Health Programs Throughout Its Supply Chain The List by INDITEX Ready To Manufacture (RTM) Green To Wear (GTW) Picking Program RCA Audits R&D Collaborations
10 The List by INDITEX: Introduction MOTIVATION: INDITEX epidemiological studies shown that most of CTW non compliances are related to the use of bad quality dyestuffs and auxiliaries during articles production. DESCRIPTION: First comprehensive register of chemical products used in textile and leather manufacturing processes classified by their degree of CTW compliance. OBJECTIVE: Supervise and improve quality of chemical products used during textile/leather manufacturing processes along with the chemical industry.
11 The List by INDITEX: Description (I) PARTICIPANT CTW Categories Chemical Classification According to CTW Categories Chemicals Family Codes Description (A) Can be used (B) Can be used but application needs to be tested (C) Cannot be used CTW Non Compliance Description (1) Formaldehyde (2) Heavy Metals (3) Chromium (4) Arylamines (azo dyes)
12 The List by INDITEX: Description (II) INDITEX PARTICIPANT (1) Formaldehyde (2) Heavy Metals (3) Chromium (4) Arylamines (azo dyes) (5) Chlorophenols (6) Phthalates (7) Fluorocarbons (8) Others
13 The List by INDITEX: Evolution 10 new companies Total: 22 companies I Edition (11/13) II Edition (01/15) III Edition (03/17) 15 Requests 64 Requests 50+ Requests Key Parameters 1 st Edition 2 nd Edition 3 rd Edition Companies Involved Chemical Products Included 4,224 8,258 Approx. 20,000 Number of Tests Performed 1,774 8,289 Approx. 32,000 Chemicals classified as B or C 710 (17 %) 1,548 (19 %) Approx. 6,800 (34 %)
14 The List by INDITEX: Commitments of Participants Elimination/progresive reduction of regulated substances Assumption of finalcial penalties Removal of non complaint lots from the market Acceptance of audits to their production sites on a regular basis
15 The List by INDITEX: Case Study: Black Reactive 5 Dyestuff Global Consumption Estimation: 1.7 million tons Global Estimation of Dyestuffs Distribution % of reactive dyestuffs are based on black reactive 5. Others 30% Reactive 25% Black reactive 5 consumption is about 180, ,000 Tons/year (12 % of total dyestuffs consumption). All black reactive 5 contain ppm pca due to elimination costs and difficulty. Acid 5% Direct 10% Vat 10% Disperse 20% As a consequence of imposed production improvements, 2 of the participants has developed the first black reactive 5 without pca.
16 The List by INDITEX: Outcomes OUTCOMES: To guarantee the compliance of Zero Discharge of Hazardous Chemicals commitment. To prohibit the use of most polluting chemicals in Inditex productions. To improve quality of chemicals and waste waters by imposing continuos production improvement to all participants. To lead chemical industry to improve their manufacturing processes and quality of their products by creating chemicals risks awareness into the textile/leather sectors. To reduce product health international legislation non compliances in INDITEX and other retailers productions. To ease selection of chemicals in order to save time and costs.
17 The List by INDITEX: Future Initiatives Focus Towards Sustainability Inclusion of New Participants and Parameters Creation of a Specific Section for Sustainable Manufacturing Processes Indication of Sustainable Chemicals Online Version
18 INDITEX Product Health Programs Throughout Its Supply Chain The List by INDITEX Ready To Manufacture (RTM) Green To Wear (GTW) Picking Program RCA Audits R&D Collaborations
19 Ready To Manufacture: Introduction DESCRIPTION: Manufacturing code of mandatory compliance for all INDITEX direct suppliers and their wet processing mills. RTM includes for the first time mandatory GMPs and recommended best practices which covers all stages of the manufacturing process in order to ensure production traceability and CTW compliance. Grey Yarn / Fabric,Raw Hide/ Skin Dyeing Raw Pretreatment Printing Material Beam House Finishing Testing Finished Washing Product Tanning Crusting Dyes, Pigments, Auxiliaries
20 Ready To Manufacture: Description SCOPE: Dyeing and printing mills, laundries and tanneries within the supply chain of all INDITEX direct suppliers. OBJECTIVE: To ensure full compliance of INDITEX product health standard (CTW) and MRSL. INTERNAL STRUCTURE: 2 chapters: Direct suppliers and sub-suppliers: o Section 1 Direct Supplier Staff o Section 2 Traceability Documents Mill included in the supply chain of direct suppliers or sub-suppliers: o Section 1 - Mill Staff o Section 2 - General Warehouse Conditions o Section 3 - Raw Materials Warehouse o Section 4 - Auxiliaries and Dyestuffs/Pigments Warehouse o Section 5 - Finished Goods Warehouse o Section 6 - Work In Progress o Section 7 - Dyeing and Washing o Section 8 - Printing o Section 9 - Water Discharge Effluents o Section 10 - Production and Chemicals Control o Section 11 - CTW Management o Annexes (templates and decision charts) PARAMETERS CONTROLLED: Arylamines; Formaldehyde; ph; Colour Fastness, Fiber Composition, PFCs and APEOs.
21 Ready To Manufacture: Implementation and Verification RTM COMMUNICATION: RTM manufacturing code has been translated into 9 languages in order to improve distribution throughout the wet processing mills of all direct suppliers involved. RTM IMPLEMENTATION AND VERIFICATION: RTM implementation is checked by means of regular technical audits performed by nominated third parties service providers. In case RTM non compliance is found, a corrective action plan is provided and checked by means of follow-up audits. Type of Facility Audited/Trained % Improvement Direct Suppliers % Mills 1, %
22 Ready To Manufacture: Implementation Benefits Increase of factories sustainability/reduction of environmental impact: o Power, water and chemicals consumption. o Waste waters and emissions. Reduction in manufacturing times and costs associated to article reprocessing. Optimization of chemicals inventory. Improvement in risk management. Increase profitability by reducing variations, wastes and defects/rejections. Important: All RTM implementation benefits could be enjoyed by all retailers using the audited mill.
23 The List by INDITEX and Ready To Manufacture Connection management.. Applications Status for the III Editio
24 INDITEX Product Health Programs Throughout Its Supply Chain The List by INDITEX Ready To Manufacture (RTM) Green To Wear (GTW) Picking Program RCA Audits R&D Collaborations
25 Latest R&D Collaborations: Introduction Supervising and Sectorial Organisms: Universities: Technological Centers: R&D Laboratories: Chemical Manufacturers/Consultancy:
26 INDITEX Product Health Programs Throughout Its Supply Chain The List by INDITEX Ready To Manufacture (RTM) Green To Wear (GTW) Picking Program RCA Audits R&D Collaborations
27 Where Are We Going To.?
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