SCOT - Sustainable Cotton Tracker

PUTTING
QuestionYOUR COMPANY IN THE
and Answers
LIMELIGHT WITH CMIA

DATE: 02.05.2016
 Agenda
I. Implementation of CmiA into the supply
chain
I. CmiA Mass Balance System
II. Q&A on CmiA

II. SCOT Introduction

I. SCOT Workflow
II. Q & A on SCOT

III. Contact
IV. Important Links

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Implementation of CmiA
into the supply chain

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Most CmiA License Partners apply the CmiA Mass Balance system

MASS BALANCE HARD IDENTITY PRESERVED SYSTEM

on Spinning Mill level - NO CONTENT CLAIM (HIP)
1. Purchase of CmiA cotton from nominated cotton traders 1. Confirmation of the HIP Order by each supply chain party

2. Registration with CmiA 2. Processing of CmiA cotton to 100% CmiA yarn, fabric and
product, seggregration on ALL production levels
3. Assurance of CmiA cotton purchases and yarn sales BALANCE, 100% CmiA cotton used inside the yarn!
CmiA cotton not mandatory used inside the yarn!
3. Traceability of HIP Order through the entire supply chain
4. Verification and controlling by CmiA through regular reporting
(several supply chain partners)
Order level

Product level

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Insights into the Mass Balance system

100 % CmiA
cotton

e.g. 30% CmiA

cotton, 70%
other cotton
0% CmiA
cotton

86 tons of CmiA or any other

100 tons CmiA cotton ~14 % wastage* cotton can be sold as CmiA yarn

Mass Balance at spinning mill level

CmiA registered spinning mills & fabric producer:
[Link] * Wastage factor is amended individually for each spinning mill

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 Mass Balance calculation is working for pure cotton yarns

Cotton for yarn production Amount of CmiA yarn MB calculation

1. Example*

1,000 kg cotton will be deducted

from cotton balance
1,000 kg of CmiA
1,000 kg CmiA cotton cotton yarn

2. Example*

1,000 kg cotton will be deducted

from cotton balance
1,000 kg of CmiA
700 kg CmiA cotton 300 kg Any other cotton cotton yarn
Mixing ratio is spinner‘s decision

3. Example*

1,000 kg cotton will be deducted

from cotton balance

1,000 kg any other cotton/ 1,000 kg of CmiA

NO CmiA cotton cotton yarn

No matter how much CmiA cotton is used spinner must purchase 1,000 kg CmiA cotton!

*Simplified example without wastage calculation

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 Same applies for blended (cotton + other fibre) yarns

Amount of CmiA yarn MB calculation CmiA cotton purchase

1. Example*

1,000 kg cotton will be deducted 1,000 kg CmiA cotton

from cotton balance must be purchased

1,000 kg of 100 %
cotton yarn

2. Example*

700 kg cotton will be deducted 700 kg CmiA cotton

from cotton balance must be purchased

700 kg cotton 300 kg viscose

For the WHOLE COTTON share spinner must purchase CmiA cotton!

*Simplified example without wastage calculation

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What CmiA Mass Balance System means:

▪ No content claim → CmiA cotton does not need to be physically used inside the yarn
▪ Spinner can decide how to produce the CmiA yarn
▪ NO MINIMUM requirement of CmiA cotton inside the yarn!
▪ Balance control of CmiA yarn sales and CmiA cotton purchases will be done in the
SCOT system
▪ The entire cotton amount of the CmiA yarn (no matter if CmiA cotton is used or not)
will be deducted from the CmiA cotton balance.
▪ For the WHOLE (cotton) yarn amount the spinning mill must purchase the eqivalent
of CmiA cotton

This also means:

▪ As usual mixed yarn price calculation
▪ No discussions on quality because spinner can fulfill all quality requirements.
▪ Starting with CmiA at any time when the CmiA cotton balance in SCOT is positive
→ full flexibilitiy with CmiA Mass Balance

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CmiA Implementation into the Supply Chain

Retailer Importer Supplier (RGM) Weaving/ Knitting Spinning Cotton Trader

Places order with

description
“CmiA Mass Balance”
Places order with
description
“CmiA Mass Balance”
Purchases “CmiA fabric”
from CmiA registered
fabric producer

Purchases “CmiA Mass

Balance yarns” from CmiA
registered spinning mill Purchases “CmiA cotton”
to always have a positive
CmiA cotton balance

CmiA registered spinning mills & fabric producer:

[Link]

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Back UP

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CmiA Facts and Figures

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CmiA Cotton is available and competitive - price and quality wise

Availability
• Approx. 630,000 mt lint cotton in 2019/2020 season
• 2 different harvesting seasons per year

Chad
Quality
• 10 different CmiA countries come with a variety of
cotton quality
Burkina Faso
• General staple length of 27 - 31 mm, which allows the
production of yarn as fine as NE40.
• Officially medium player when it comes to
contamination (better ranked than India and Pakistan) Uganda
Côte d‘Ivoire Benin
Nigeria

Cameroon Tanzania
Price
• Cotton is a natural product and volatile as it is traded Zambia
on the global market.
• Depending on several circumstances of the importing
country like
• harvesting times Mozambique
• supply of local cotton
• Political and/or climate situation
• general supply and demand.

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The Mass Balance Calculation

CmiA cotton purchases CmiA labeled yarns 16.3 % wastage upcharge*

100.00mt 86.00mt 14.00 mt 100.00 mt

The entire cotton amount

of the labeled CmiA Mass Balance yarn
(no matter which origin it physically is)
will be deducted from the CmiA cotton balance.

In all three options, the entire amount of cotton yarn, including wastage, is deducted from the spinning
mill’s cotton balance, regardless of whether any CmiA cotton was physically used in the yarn. When the
spinning mill is producing blended yarns (i.e. mixed with other fibers), only the cotton share of the total yarn
amount will be deducted.

• The system is adding a fixed percentage of each yarn sales quantity, to be able to have the approx. quantity of lint cotton being used. This factor can be amended individually.
To do so in the system the wastage factor is converted to a wastage UPCHARGE factor.
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Wastage factor and wastage UPCHARGE factor

During production from lint cotton to yarns regularly a wastage occurs. This means, using e.g. 100kg cotton yield
only approx. 86kg of yarns (wastage factor 14%).

The wastage factor indicates the loss from cotton to yarn.

14% wastage

100.00 mt 86.00 mt

In the SCOT system, this calculation is done the other way round, so to each yarn sale/ production a wastage
upcharge needs to be added.
To do so, the wastage factor must be changed to a wastage upcharge factor*.

16,3% wastage
UPCHARGE

86.00 mt 100.00 mt

Wastage Upcharge Factor = 100 = 100 = 1,163 = 16,3%

(100 – wastage factor) (100-14)

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The Mass Balance system comes with a lot of advantages

Full flexibility for the first CmiA implementing supply chain level (spinning mill)
in terms of:

Price Cotton sourcing price Take advantage of market circumstances

by purchasing CmiA cotton when the
price is lowest
Yarn price calculation Benefit from mixed calculations for yarns
especially when applying the Mass
Balance system
Quality Blending or Replacement Achieve the required quality by blending
the CmiA cotton with other origins
Availability Independent from physical CmiA yarn productions can start
availability everytime right after signing a CmiA
cotton contract (even though the CmiA
cotton has not physically reached the
warehouse yet)

24.11.2021 16
SCOT Introduction

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SCOT workflow

Retailer Importer Supplier (RGM) Weaving/ Knitting Spinning Cotton Trader

1,000 T-Shirts 1,000 T-Shirts 1,000 T-Shirts xxx Yards xxx kg Approx. 250 kg of raw
(100% CO) (100% CO) (100% CO) (100% CO) (100% CO) material CmiA cotton

OR

xxx kg
(100% CO)
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Roles & Requirements

Role* Requirements & to do’s

Regular order data upload & allocation to importers/ supplier’s accounts, gets overview
Retailers
of whole supply chain for their orders

Importers Orders received from retailers & further allocation to relevant supplier

Suppliers Orders received from retailer or importer & allocation of fabric/ yarn purchases per
(Garment Producer) retailer’s order, enter or acknowledge fabric/ yarn purchases
Fabric Trader/
Enter or acknowledge fabric purchases and fabric sales
Dye Houses
Enter or acknowledge fabric sales & allocation of yarns to fabrics, enter or acknowledge
Fabric Producers
yarn purchases
Yarn Trader/
Enter or acknowledge yarn purchases and yarn sales
Dye Houses
Enter or acknowledge yarn sales, acknowledgment of cotton purchases from cotton
Spinning Mills
traders

Cotton Trader Providing cotton purchases and cotton sales information

CmiA Mass Balance Controlling on Spinning Mill level & oversight of “pending” transactions

Provision of contact data (Importers/ Suppliers) & reminding supply chain partners to
Sourcing Offices
perform system duties, gets overview of whole supply chain of retailer’s orders
*System covers also vertical set ups. 22
Insights SCOT

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SCOT for Retailers/ Sourcing Offices

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SCOT for Retailers & Sourcing Offices

Role Requirements & to do’s

• Regular order data upload & allocation to importers/ supplier’s
Retailer Retailers
accounts
• Provision of contact data (Importers/ Suppliers) & reminding supply
Sourcing Offices
chain partners to perform system duties

Retailers provide on a regular basis order data like:

▪ Importer/ supplier name

▪ Article
▪ Composition
▪ Quantity
▪ Etc.

Based on that, SCOT delivers full transparency & traceability along the supply chain:

▪ Placed orders
▪ Status of orders (fulfilled, not fulfilled)
▪ Used CmiA amounts (fabrics/ yarns/ cotton) along the CmiA supply chain

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SCOT for Retailers & Sourcing Offices: Reports

Retailer Orders: Overview of placed CmiA orders + current status

Retailer

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SCOT for Retailers & Sourcing Offices: Reports

Retailer Overview: Overview of placed CmiA orders + converted cotton amount

Retailer

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SCOT for Importers

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SCOT for Importers

Role Requirements & to do’s

• Receives orders from retailers
Importers
• Further allocation to relevant supplier

Companies not doing own CmiA production are obliged to do following transactions in the SCOT
system:
Importer

Allocation:

▪ “Assign” one (1) order to another entity

or

▪ “Bulk Assign” several orders at once to another entity

Status is changed to “forwarded” and order is placed in supplier’s account.

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SCOT for Importers: Allocation

Importer

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 SCOT for
Suppliers/Garment Producers

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SCOT for Suppliers/Garment Producers: Role

Role Requirements & to do’s

• Receives orders from retailer or importer
• Purchase CmiA fabrics/yarns to build a stock
Suppliers
• Allocation of fabric/ yarn purchases per retailer’s order (bulk orders
are possible)
Purchase CmiA fabrics/ yarns to build a stock:

Enter purchase transaction which the seller (Fabric/ Yarn Producer) needs to
acknowledge

Suppliers Acknowledge purchase transaction which the seller (Fabric/ Yarn Producer) entered

and

Allocation of CmiA fabrics/yarns to CmiA retailer orders with different options:

ONE yarn/fabric order to ONE retail order (1 : 1)

SEVERAL yarn/fabric orders to ONE retail order (x : 1)

ONE yarn/ fabric order to SEVERAL retail order (“bulk allocate” function) (1 : x)

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SCOT for Suppliers/Garment Producers:
Building Stock of Fabrics or Yarns – two possibilities

Add new purchases of fabrics or yarns → waiting for acknowledgment by seller

Suppliers
Acknowledge new purchases of fabrics or yarns (purchases entered by fabric/yarn seller)

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SCOT for Suppliers/Garment Producers:
Fabric/Yarn Allocation to Retail Orders – Three possibilities

ONE yarn/fabric purchase allocated to ONE retail order (1 : 1)

or
SEVERAL yarn/fabric purchases allocated to ONE retail order (x : 1)

Suppliers

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SCOT for Suppliers/Garment Producers:
Fabric/Yarn Allocation to Retail Orders – Three possibilities

ONE yarn/ fabric purchase to SEVERAL retail order (“bulk allocate” function) (1 : x)

Suppliers

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SCOT for Fabric Producers

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SCOT for Fabric Producers

Role Requirements & to do’s

• Enter or acknowledge yarn purchases to build a stock
Fabric Producer • Enter or acknowledge fabric sales to supplier & allocate yarns to fabric
sales

Fabric Producer are obliged to do following transactions in the SCOT system:

▪ Purchase CmiA yarns to build a stock:
Enter purchase transaction which the seller (Spinner, Yarn Trader/ Dye Houses) needs to
acknowledge

Acknowledge purchase transaction which the seller (Spinner, Yarn Trader/ Dye Houses)
entered

and allocate during fabric transactions (enter or acknowledgment) purchased yarns to sold fabrics:
Weaving &
Knitting ▪ Allocation of CmiA yarns to CmiA fabric productions with different options:

ONE fabric order to ONE yarn amount (1 : 1)

ONE fabric order to SEVERAL yarn amounts (1 : x)

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SCOT for Fabric Producer – Build stock of yarns

Add new yarn purchases –> waiting for acknowledgment by seller

For yarn purchases please indicate only the cotton share amount of the yarn,
e.g. 1,000kg of 100% CO = 1,000kg CmiA yarns; 1,000kg 90% CO, 10%VIS = 900kg CmiA yarns.

Acknowledge new yarn purchases (purchases entered by seller)

Weaving &
Knitting

For yarn purchases only the cotton share amount of the yarn,
e.g. 1000kg yarns 90% CO, 10% VIS – 900kg of CmiA cotton yarns, is displayed.
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SCOT for Fabric Producer – Allocate yarns to fabrics

During adding or acknowledging a fabric sale the amount of CmiA yarns used must be
indicated.

Weaving &
Knitting
The stock cumulated per seller is displayed.

For yarn allocation only the cotton share amount of the yarns used for fabric production is
relevant,
e.g. 1000kg yarns 90% CO, 10% VIS – please indicate only 900kg of CmiA cotton yarns.

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SCOT for Spinning Mills

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SCOT for Spinning Mills

Role Requirements & to do’s

• Acknowledgment of cotton purchases
Spinning Mills • Enter or acknowledge yarn sales to Fabric Producers or Suppliers (or
Yarn Trader/ Dye Houses)

Spinning Mills are obliged to do following transactions in the SCOT system:

▪ Purchase CmiA cotton to have a positive cotton balance:

Acknowledge purchase transaction which the cotton trader entered (only the trader are
entering cotton transactions!)

▪ Sell CmiA yarns to Fabric Mills or Supplier (or Yarn Trader/ Dye Houses):

Enter yarn sales transaction which the buyer needs to acknowledge

Acknowledge yarn sales transaction already enter by buyer

Spinning

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SCOT for Spinning Mills – Purchase CmiA cotton

To add CmiA cotton to their balance spinners only need to acknowledge cotton purchases from cotton
traders.

▪ Only cotton contracts purchased with remark „CmiA“ will be entered by traders to SCOT.
▪ If cotton has been purchased with remark „CmiA-BCI“ this volume will be added to BCI platform.

Spinning

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General remarks on CmiA cotton purchases

▪ One cotton contract can be only used in one of the system at the same time, CmiA
OR BCI!
▪ Spinners should inform before purchase for which system they will use the cotton
volume, CmiA OR BCI!
▪ Contracts can be switched later.
- if transaction is not acknowledged yet in the system: spinner can refuse it, trader
can enter new in other system
- if transaction is acknowledged already in the system: trader please contact CmiA or
BCI office to delete this transaction and enter it to the other one

➢ Decide to buy CmiA cotton as “CmiA” OR as “CmiA-BCI”.

➢ Acknowledge “CmiA” volumes in the SCOT system.
➢ Acknowledge “CmiA-BCI” volumes in the BCI Platform.

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SCOT for Spinning Mills – Sell CmiA yarns

Add new yarn sales -> waiting for acknowledgement by buyer (fabric mill, supplier or yarn trader/dye
house)

For yarn sales please indicate only the cotton share amount of the yarn,
e.g. 1,000kg of 100% CO = 1,000kg CmiA yarns; 1,000kg 90% CO, 10%VIS = 900kg CmiA yarns.

Acknowledge new yarn sales entered by buyer (fabric mill, supplier or yarn trader/dye house)

Spinning

For yarn sales only the cotton share amount of the yarn, e.g. 1000kg yarns 90% CO, 10% VIS – 900kg
of CmiA cotton yarns, is displayed.
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SCOT for Spinning Mills – Cotton Inventory

Controlling of Mass Balance:

▪ CmiA cotton purchases will be added to cotton balance
▪ CmiA yarn sales will be converted to a raw cotton amount
▪ Converted raw cotton amount will be deducted from cotton balance

With wastage Current

Total of CmiA Total of CmiA
upcharge factor cotton
Cotton purchases Yarn sales
Spinning converted to cotton balance

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FAQ & User Manual

Please find FAQ and User Manual in the

‚Help‘ section of SCOT
[Link]
[Link]

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Useful Links

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Useful links
Cotton made in Africa Homepage:
[Link]
CmiA FAQ pages:
[Link]
CmiA Tracking System SCOT:
[Link]
SCOT help section:
[Link]
CmiA Chain of Custody Guidelines:
[Link]
CmiA nominated Cotton Traders:
[Link]
CmiA verified Cotton Companies:
[Link]
CmiA registered producers (yarns, fabrics, garment):
[Link]
Registration Guidelines for Spinning Mills:
[Link]
Registration Guidelines for Yarn Trader/ Yarn Dye House
[Link]
Registration Guidelines for Fabric Producers:
[Link]
Registration Guidelines for Garment Producers:
[Link]

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