Better Cotton
Traceability Requirements
© Better Cotton Initiative
What takes place in the supply chain?
Placing BCI Orders - Impact
Retailers
&
Brands
Garment
Order
Fabric
Order
Yarn
Order
Lint
Order
Total cotton footprint 4
the order
Retailers
&
Brands
50% BCI
50% BCI
50% BCI
50% Better
Cotton
Better Cotton + BCCU
50% of cotton footprint 4 the order is
now Better Cotton
It is not about procuring products that contain Better Cotton
It is about transforming your supply chain into a more sustainable one
Better Cotton Chain of Custody
CLAIMS BY RETAILERS AND BRANDS
»
For a retailer/brand to make any credible claims about the volume of Better Cotton their
suppliers sourced for them, they must receive an equal number of BCCUs via BCI’s
traceability system.
»
1 BCCU represents 1 KG of lint Better Cotton sourced by a spinner.
»
BCCUs are transferred between suppliers using the Better Cotton Tracer.
»
BCCUs can be transferred between suppliers electronically if both the “buyer” and the
“seller” are in the system.
»
BCCUs can be transferred to a supplier who is not in the system via a paper document
called “Output Declaration Form (ODF)”.
Traceability System (Volume not Fiber)
Proof = Receipt of BCCUs
BCCUs are received from suppliers and passed onto the customers as proof of Better Cotton sourcing in the supply chain
Retailers and brands collect these BCCUs from their suppliers to make their total claims
Chain of custody rules provide suppliers with a set of rules that explains how fiber can be used in production and how the reporting of
BCCUs can be made
Receiving proof from vendors
Traceability and documentation requirements
Ginners
Ginners
Ginners
Traders
Traders
Traders
Spinners
Spinners
Fabric
Mills
Fabric
Mills
Garment
Garment
Man.
Man.
Retailer
Retailer
ODF issued by a spinner
ODF issued by a fabric mill
Spinners
Fabric
Mills
Garment
Man.
B
C
C
U
Retailer
Electronic receipt of BCCUs
+ ODF issued by a fabric
mill
Example of Output Declaration Form
BCCU Allocation to products
Calculation of BCCU allocation to yarns & other products
BCI’s traceability system uses two methods to calculate the lint volume used in spinning depending on the type of the yarn
These conversion rates help the system allocate the correct number of BCCUs to yarns and other subsequent products made with
these yarns
Better Cotton
Chain of Custody Rules
© Better Cotton Initiative
Better Cotton Chain of Custody
OVERVIEW
To learn more about different chains of custodies, you can refer to the following video:
http://www.isealalliance.org/waypoint/chain-of-custody-and-traceability
Better Cotton Chain of Custody
GIN LEVEL – PHYSICAL SEGREGATION
Better Cotton is kept physically
separate from conventional
cotton at the gin level in all
countries
100% Better Cotton Bales
Total available lint Better Cotton
globally
Better Cotton Chain of Custody
MASS-BALANCE SYSTEM BASICS – AFTER THE GIN LEVEL
3 kg of Cotton Purchased
BCI Credit: 2 BCCUs
 Mass-balancing applies to bales, yarns, fabrics and garments
 It allows the “natural flow” of cotton through the supply chain to
remain undisturbed
 Same Specs + Same Quality = Same Product with BCCUs
Spinning Mill in China
Better Cotton Chain of Custody
MERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Merchant
Yarn strict
spunships
and shipped
physical
Needs
middling
cotton
Better
Cotton
strict middling
to theorder
mill
forusing
a conventional
Warehouse in TX
Spinning Mill in NC
Strict middling cotton from a
BCI licensed US Grower
Warehouse in SC
Merchant
Mill
ships
BCCUs
middling
to
Andallocates
allocates
BCCUs
Needs
middling
cotton
cotton
yarn
shipment
to
the
mill
to
this
shipment
for
a BCI
order
The rules:
Middling cotton from a non-licensed
US grower
 Merchants don’t have to ship physical BCI
bales to spinners
 BCCUs can only be transferred between bales
of the same origin
Better Cotton Chain of Custody
MERCHANTS – MASS-BALANCE W/ A COUNTRY SCOPE
Warehouse in CA
Spinning Mill in Punjab
Supima cotton from a licensed
US Grower
Warehouse in INDIA
Shankar 6 cotton
for a BCI order
The rules:
Shankar 6 cotton from a nonlicensed INDIAN grower
 Merchants don’t have to ship physical BCI
bales to spinners
 BCCUs can only be transferred between bales
of the same origin
Better Cotton Chain of Custody
SPINNING MILLS - MASS-BALANCE W/ A SITE SCOPE
Better Cotton Tracer Inventory
Better Cotton Yarn
1 kg Better Cotton (Any Origin)
Conventional Cotton Yarn
1 kg Conventional Cotton (Any Origin)
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
Better Cotton Chain of Custody
TURKISH SPINNING MILL
Better Cotton Tracer
Account Inventory
Better Cotton Yarn
(Greek, BF, Turkish, US Blend)
Better Cotton from Burkina Faso, Brazil,
and Turkey
Conventional Cotton Yarn
(Greek, BF, Turkish, US Blend)
Conventional cotton from
the US and 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
Better Cotton Chain of Custody
SPINNERS – MASS-BALANCE W/ A SITE SCOPE
Better Cotton
(Any Origin; Any Specs)
Spinner
Conventional Cotton
(Any Origin; Any Specs)
The rules:
 Spinners don’t have to consume physical BCI bales to make the yarn
 BCCUs can be transferred to any yarns made with any fibers regardless of the country of origin of fiber used
Team Contacts
Please contact any of us with your questions
BCI Supply Chain Team:
Lea Michalczik – BCI Traceability Systems Coordinator
lea.michalczik@bettercotton.org
Kerem Saral – BCI Supply Chain Manager
kerem.saral@bettercotton.org
Direct Line: +41-22-939-1293
Skype ID: keremsaral
Manish Gupta - India Supply Chain Coordinator
manish.gupta@bettercotton.org
Muhammad Shuiab – Pakistan Supply Chain Coordinator
muhammad.shuaib@bettercotton.org
Leo Xiao - China Supply Chain Coordinator
leo.xiao@bettercotton.org
Seyma Karacay – Turkey Supply Chain & membership Officer
Seyma.Karacay@bettercotton.org