Source Intelligence > Case Studies > Better Cotton Initiative: Transforming Cotton Production through IoT

Better Cotton Initiative: Transforming Cotton Production through IoT

Technology Category

Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Apparel

Applicable Functions

Logistics & Transportation

Use Cases

Supply Chain Visibility

Services

System Integration

About The Customer

The Better Cotton Initiative (BCI) is a global not-for-profit organization and the largest cotton sustainability program in the world. BCI exists to make global cotton production better for the people who produce it, better for the environment it grows in, and better for the sector’s future. BCI aims to transform cotton production worldwide by developing Better Cotton as a sustainable mainstream commodity. To make this vision a reality, BCI works with a diverse range of stakeholders across the cotton supply chain to promote measurable and continuing improvements for the environment, farming communities, and the economies of cotton-producing areas.

The Challenge

The Better Cotton Initiative (BCI), established in 2009 by organizations such as Adidas, H&M, IKEA, Oxfam, and WWF, was created to enhance the livelihood and economic development in cotton-producing regions, reduce the environmental impact of cotton production, and secure the future of the sector. The initiative was designed to address issues such as harmful crop protection practices, water misuse, declining soil fertility, and unethical practices like child or forced labor. To achieve these goals, BCI needed to define a more sustainable way of growing cotton and train farmers to adopt these techniques. In 2013, 680,000 farmers produced 905,000 metric tonnes of Better Cotton. The goal was to increase these numbers to 5 million and 8.2 million respectively by 2020. However, ensuring that retailers and brands could confidently make claims about Better Cotton was a challenge.

The Solution

To address this challenge, BCI introduced Chain of Custody requirements for the supply chain and developed a tracking and tracing system, called the Better Cotton Platform, powered by ChainPoint. This system covers the supply chain from the ginner to the retailer. It is a combination of mass-balance administration and the tracing of so-called “Better Cotton Claim Units” (BCCUs). In a mass-balance system, the volumes of sustainable product are tracked from ginners to the yarn spinners in ChainPoint. The Better Cotton Platform ensures that a trader cannot sell more Better Cotton to yarn spinners than he acquired from Better Cotton ginners. At the yarn spinner, each kilo of Better Cotton is then swapped into a BCCU. As the Better Cotton continues its journey through the supply chain as yarn, cloth, and the final product, it is accompanied by these BCCUs. At the end, a retailer can trace the BCCUs back to the yarn spinner that issued them, by using the Better Cotton Platform.

Operational Impact

The implementation of the Better Cotton Platform has significantly improved the transparency and traceability of the cotton supply chain. It has enabled retailers and brands to confidently make claims about Better Cotton, knowing that the cotton has been produced in a more sustainable and ethical manner. The platform has also helped to ensure that traders cannot sell more Better Cotton than they have acquired, thereby preventing fraudulent practices. Furthermore, the platform has facilitated the tracking of Better Cotton from the ginner to the retailer, ensuring that each kilo of Better Cotton is accompanied by a Better Cotton Claim Unit (BCCU). This has made it possible for retailers to trace the BCCUs back to the yarn spinner that issued them, thereby enhancing the credibility and integrity of the Better Cotton brand.

Quantitative Benefit

In 2013, 680,000 farmers produced 905,000 metric tonnes of Better Cotton.
The goal is to increase these numbers to 5 million farmers and 8.2 million metric tonnes of Better Cotton by 2020.
The Better Cotton Platform ensures that a trader cannot sell more Better Cotton to yarn spinners than he acquired from Better Cotton ginners.