The Importance of a Unified Supply Chain On a Virtual Sourcing Platform

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July 13th, 2021
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8:10 AM

Consumers often lack verified information about how their apparel is made. Supply chain transparency calls for companies to thoroughly investigate what is happening in their supply chains and to disclose this knowledge both internally and externally.

When discussing the supply chain in the textile industry, it’s important to note that sustainability does not equal transparency. Sustainability is what ensures the correct practices, while transparency is what encourages companies to disclose this information. This is increasingly important as today, the consumer wants to know who made their product as well as its origin and materials. The Need for Transparency in the Cotton Supply Chain As the apparel and textile industries in the U.S. continue to be subject to scrutiny, every material and process is being put under the microscope. As a natural fiber, cotton is renewable and biodegradable. Having been used by mankind for the last 7,000 years, cotton is used for various purposes. Unfortunately, conventional cotton has devastating environmental impacts, leading to a global shift in how cotton industries engage in sustainable practices. As the most widely used raw material in the world, cotton is used for manufacturing apparel, denim, home textiles, as well as food and medical products. The cultivation of cotton requires vast amounts of water, chemicals, and pesticides. Although the cost of production of conventional cotton is significantly less, it sacrifices the well-being of the land and farmers, and so organic cotton is crucial for the good of the planet. Organic cotton production produces around 46% less C02 emissions compared to normal cotton. A lack of transparency in the supply chain has the potential to stop businesses cold. Shipments that are missing documents to prove origin are being turned away at ports, causing costly disruptions to the brands and companies. For example, U.S. Customs and Border Protection has denied entry to shipments coming from North Korea, given federal regulations set by the U.S. that designate anti-forced labor laws. COTTON USA™: “The Cotton The World Trusts” COTTON USA™ is a standard owner trusted by textile manufacturers and companies all over the world. As a licensing program, COTTON USA™ supports mills, manufacturers, wholesalers, sourcing companies, brands, and retailers that wish to utilize its mark to attest for quality, transparency, and traceability. These days, many textile companies and fashion brands use sustainability in their marketing, as consumers now want more transparency when it comes to their products. This is why it’s essential to look for the correct certification, such as COTTON USA™. Thanks to the strict guidelines set by certification bodies, this helps both buyers and consumers make well-informed decisions upon selecting their sustainable textiles. As a trusted seal of approval, the program ensures that cotton meets the highest standards, tested for 100% cotton consistency and traceability. In addition, only premium cotton is met with approval so it’s also a seal for high quality. With 700 licensees worldwide, the COTTON USA™ certification sets the highest standards for sustainably grown cotton. In order to get licensed, products must contain more than 50% U.S. cotton. With the supply chain under more scrutiny than ever before, companies carrying this mark benefit from meeting sustainability standards that align with the United Nations goals for sustainable development, demonstrating that the company values quality and scientific traceability. The Benefits of a Transparent Partnership Consumers worldwide prefer cotton. According to a 2018 Global Lifestyle Monitor, 81% responded that cotton was their preferred fiber for current clothing fashions. Compared to other fibers, cotton is recognized as the most comfortable, sustainable, and longer-lasting. Showing consumers that a product is made from sustainable materials, guaranteeing quality and high value translates to bigger business benefits. This is where the COTTON USA™ label steps in. The mark is used by brands and retailers to demonstrate that 50% of a product’s material is made by U.S. cotton. A study on hangtags carried out in 2016 showed that two-thirds of consumers would pay more for the COTTON USA hangtag. The 2017 consumer survey also found that half of the global consumers associate the COTTON USA trademark with reliability, quality, and trust, which are leading attributes in consumers’ decision-making when it comes to purchases. The mark is used by COTTON USA™ licensees to feature cotton products throughout the supply chain and in retail. The standard owner supports partners with a range of consultation services, the benefits of which being tangible. In addition to the licensing program, COTTON USA™ also offers a consultation service - COTTON USA™ Solutions. Its team of expert consultants has created business-building plans in order to provide over 1,500 spinning mills in over 50 countries with unmatched expertise. This service is complimentary for members of the U.S. Cotton Trust Protocol, which sets the standard for sustainably grown cotton. Final Thoughts If transparency is so imperative for business, why isn’t it already a common practice for companies? The issue at hand is that supply chains weren’t made to be transparent. Companies have hesitated in giving out information that would put them at a competitive disadvantage, or expose them to criticism. Another reason is that relevant information such as details about upstream supply chain practices, either isn’t collected or doesn’t exist. Despite this, there are methods to evaluate the transparency of a company in order to get a sense of how the business is performing. Transparency can be measured in two dimensions: supply chain scope and milestones on the path to completing transparency. Supply chain transparency relies on continuous improvement within the organization across value chains. With the demand for transparency showing no signs of slowing down, it’s encouraging to know that there are systems in place to helps companies identify areas for improvement.