Better Cotton Initiative. Lea Michalczik BCI Traceability Systems Coordinator 2016

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1 Better Cotton Initiative Lea Michalczik BCI Traceability Systems Coordinator

2 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

3 Chain of Custody Guidelines & Traceability System Participants are muted Questions / comments in the comment box on the right side of your screen 3

4 Chain of Custody Guidelines Better Cotton Chain of Custody Guidelines - rules for how to deal with physical Better Cotton in the supply chain 4

5 Chain of Custody Guidelines 5

6 Chain of Custody Guidelines ggg 6

7 Chain of Custody Guidelines Better Cotton is kept separately from conventional cotton at the gin level In order to create 100% Better Cotton Bales 7

8 Chain of Custody Guidelines ggg 8

9 Chain of Custody Guidelines Mass-balance = traceability of volumes BCCU = Better Cotton Claim Unit» 1 BCCU represents 1 kilo of physical Better Cotton 9

10 Chain of Custody Guidelines Mass-balance administration 1 kg Better Cotton Company 1 kg Conventional Cotton 10

11 Chain of Custody Guidelines 3 kg of Cotton Credit: 2 BCCUs 11

12 Chain of Custody Guidelines 12

13 Chain of Custody Guidelines Advantages of mass-balance administration Zero wait time on bales to arrive Flexibility in bale use Easy traceability 13

14 Chain of Custody Guidelines Trader: Country scope 1 kg Brazilian Better Cotton Trader 1 kg Brazilian Conventional Cotton 14

15 Chain of Custody Guidelines Spinner: Site scope 1 kg Brazilian Better Cotton Spinner 1 kg Indian Conventional Cotton 15

16 Chain of Custody Guidelines PURCHASE INVENTORY SALE Better Cotton from - Burkina Faso - Brazil, - Turkey Better Cotton Tracer Inventory Yarn sold as Better Cotton yarn with bales originating from - Greece - Burkina Faso - Turkey - the US Conventional cotton from - the US - Greece Physical Cotton Inventory Yarn sold as conventional yarn using the bales originating from - Greece - Burkina Faso - The US 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

17 Chain of Custody Guidelines CoC guidelines: separation at gin level, further explanation 17

18 Better Cotton Tracer Better Cotton Tracer - online traceability platform used to track Better Cotton purchases and sales 18

19 Better Cotton Tracer Tracer access is optional 19

20 Better Cotton Tracer Buy Better Cotton Declare purchase in the Better Cotton Tracer Your Better Cotton inventory goes up No physical separation needed Sell Better Cotton Your Better Cotton inventory goes down 20

21 Better Cotton Tracer Your Better Cotton Inventory Your Better Cotton Transactions 21

22 Better Cotton Tracer One party enters a transaction The other party acknowledges it 22

23 YARN SALE Your customer IS on the Tracer Select their name from the drop down list when you register the sale of fabric BCCUs automatically allocated Your customer IS NOT on the Tracer Select Manual Entry Option and type the name of your customer Generate Output Declaration Form (ODF) through the Tracer and to your customer

24 FABRIC SALE Your customer IS on the Tracer Select their name from the drop down list when you register the sale of fabric BCCUs automatically allocated You DO know who your end user is Select their name from the drop down list when you register the sale of fabric BCCUs automatically allocated Your customer IS NOT on the Tracer You DO NOT know who your end user is Select Manual Entry Option and type the name of your customer Generate Output Declaration Form (ODF) through the Tracer and to your customer

25 END PRODUCT SALE You DO know who the end user is Select their name from the drop down list when you register the sale of fabric BCCUs automatically allocated You DO NOT know who your end user s but selling to an agent Select Manual Entry Option and type the name of your customer Generate Output Declaration Form (ODF) through the Tracer and to your customer

26 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

27 RETAILERS Generally when you receive an ODF, please take a look at the Instructions for Retailer at the bottom of the page.

28 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 lea.michalczik@bettercotton.org Kerem Saral BCI Supply Chain Manager kerem.saral@bettercotton.org Seyma Karacay Lokmaci Turkey Supply Chain & Membership Officer seyma.karacay@bettercotton.org Manish Gupta - India Supply Chain Coordinator manish.gupta@bettercotton.org Muhammad Shuaib Pakistan Supply Chain Coordinator muhammad.shuaib@bettercotton.org Leo Xiao - China Supply Chain Coordinator leo.xiao@bettercotton.org 28

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