SUPPLY CHAIN MAPPING 101 - AGENDA

10:15 – 10:55 Speakers

• Rolf Heimann, Executive Board, hessnatur stiftung
• Karin Ekberg, Founder & CEO, Leadership & Sustainability
• Maaike Kokke, Corporate Responsibility Manager, G-star RAW C.V.

10:55 – 11:05 Q&A

11:05 – 12:05 Table discussion – Mapping exercise

12:05 – 12:15 Wrap up

Moderation & Support:

• Simone Seisl, Consultant, Special Projects, Textile Exchange
• Carlotta Cataldi, Graphic Facilitation
 SUPPLY CHAIN MAPPING 101 - DELIVERABLES

• Why 'business as usual' has gone for good

• What challenges and opportunities arise
• Learn how to get started
• The business case of Supply Chain Mapping
• How to increase transparency
• Experiences from a brand that made the journey with dedication
• Learn from each other, dare to ask, use the expertise in the room
• Take ideas home for your individual approach to Supply Chain
Mapping
Sustainable
Paradigm Shift
in the Textile Industry
Rolf Heimann
Textile Exchange Conference
Oct. 5th 2016
Die hessnatur Stiftung
Wer wir sind

• Die Projektarbeit der operativen Stiftung wird von

Textilingenieuren, Umweltspezialisten und Experten für soziale
Standards durchgeführt

• Dadurch kann die hessnatur Stiftung auf jahrzehntelange

Erfahrung in der Nachhaltigkeit der Textilbranche zurückgreifen

• Stiftungszweck: Forschung und Entwicklung angewandter

Nachhaltigkeit

Sustainable Paradigm Shift in the Textile Industry

Unsere Themen
Der Stiftungszweck artikuliert sich in unseren Themen

Expertise in den Bereichen

• Textilökologie
• Sozialstandards
• Management- und
Monitoringsysteme
• Materialentwicklung
• Circular Economy

Sustainable Paradigm Shift in the Textile Industry

Sustainability Expert Team
Nachhaltigkeits-Kompetenz in allen Facetten

Rolf Heimann Maren Neundorfer Marina Chahboune Carolin Bohrke

Vorstand, Textilökologie, Leder, Monitoring Denim, SC, Design, Material Konzept, Strategie,
Nachhaltigkeitspionier Kommunikation

Cordula Kehrmann Arne Zocher Petra Katzenberger

Produktmanagement CSR, Supplier Capacity Building Auditorin, Prozesse

Sustainable Paradigm Shift in the Textile Industry

Paradigm Shift
The market needs a paradigm shift
Why?

• Increasing expectations of the market / stakeholders

• trade unions
• associations
• NGO‘s
• consumers

• Rising risk aspects

• Uniqueness / brand distinction

Sustainable Paradigm Shift in the Textile Industry

Challenges for the brands (1/2)

Knowledge and transparency along the textile chain

Knowledge regarding ecology and social standards

Implementing management and monitoring systems

Conformity and Credibility

Holistic corporate responsibility

Sustainable Paradigm Shift in the Textile Industry

Challenges for the brands (2/2)
Integrated sustainability management

• Establishing and implementing sustainability concepts

along their supply chains
• Integrate them into the processes

Big challenge for small and medium enterprises with

global supply chains
Auditing cannot substitute this principle

Action over reaction

Sustainable Paradigm Shift in the Textile Industry

Sustainability as a value driver

Cost
Brand Risk Strategic reduction Employee
articulation minimization measuring through identification
(Identification, points ecologic (Generation Y)
USP, credibility,
Storytelling)
optimization

Sustainable Paradigm Shift in the Textile Industry

What makes the
difference?
The Triple Bottom Line
Elements of Sustainability

Society
People

Sustainability
Ecology Economy
Planet Profit

Corporate Social Responsibility

(social ≙ societal)

Sustainable Paradigm Shift in the Textile Industry

Ecology
The Holistic Approach
Social Standards / Working Conditions
The Holistic Approach

Sustainable Paradigm Shift in the Textile Industry

Fair Trade Relations
The Holistic Approach

Sustainable Paradigm Shift in the Textile Industry

Sustainable Production
The Holistic Approach

Sustainable Paradigm Shift in the Textile Industry

Sustainable Consumption
The Holistic Approach

Sustainable Paradigm Shift in the Textile Industry

Corporate Culture
The Holistic Approach

Sustainable Paradigm Shift in the Textile Industry

The Holistic Approach
Overview

Corporate Culture

Working Fair Trade Sustainable Sustainable

Ecology
Conditions Relations Production Consumption

Sustainable Paradigm Shift in the Textile Industry

How can the new
requirements be
adopted?
Requirements of sustainability concepts
How can companies meet the new market requirements?

e.g.
Ecology Holistic Social Standards
approach

Management System Monitoring System

Transparency along the Supply Chain

Improved ecological and working conditions

Sustainable Paradigm Shift in the Textile Industry

Principle of Conformity & Credibility

• Conformity:
• Confirmation of requirements and standards

• Credibility:
• Proof of conformity

Sustainable Paradigm Shift in the Textile Industry

2 20.1
4 0.20
Thank you for your
attention!
Supply Chain Mapping 101

October 5th, 2016

Karin Ekberg
 2
Today‘s agenda

• Introduction to Supply Chain

Mapping
• First implementation steps
Introduction to Supply Chain mapping
 4
What is Supply Chain Mapping?
Following the products and materials through the supply chain through a documentation of
materials, processes and shipments involved in bringing goods to market.

Typical Supply Chain Network Illustration

 5
Why map your Supply Chain?

• Manage social & environmental

compliance risk
• Ensure strong implementation of
social & environmental programs
• Increased policy regulations
• Consumers want to know where
the products are coming from /
Increased product transparency
• Tracking & certifying more
sustainable materials
• Improve strategic supply chain
relations
 6
The Business Case for Supply Chain Mapping
Risk Cost savings • Outline clear objectives
minimization and expectations
• Set long term goals
Integrated
Compliance • Ensure attractive ROI
operations
• Engage internal
Brand &
resources
Innovation &
Market Reputation • Include the business case
development enhancement for your supply chain
partners
First implementation steps
 8
First implementation steps - Focus

• Identify the products to focus on

• Map your network of agents, vendors and
1st tier suppliers
• Gather information from them and
subcontractors (surveys) to identify 2nd and
3rd tier suppliers
• Map all material inputs
• Trace back products to raw materials
 9
First implementation steps – Support & Scale

Engage with suppliers

• Strong supplier communication is key
• Communicate clear objectives
• Ensure fair and regular supplier
engagement
• Track overall progress
Collaboration is key to success
• Devote time, effort and resources for
collaboration
• Develop your own capabilities
 10
Industry examples

Patagonia’s Footprint Chronicles

 11
Industry examples

Marks & Spencer’s interactive supplier’s map

About Leadership & Sustainability
 13
About Leadership & Sustainability

“Sustainable Innovation for Industries, Corporations and

Organizations”
•Our platform of solutions covers Consulting, Empowerment,
Sustainable Business Models and Software & Tools.
•Our Expertise, Outreach and Partnerships are global.
•Our mission is transformation and embedding of sustainability into
business processes over the entire value chain.

Website: [Link]
E-mail: [Link]@[Link]
LinkedIn Profile: [Link]
Twitter: [Link]
SUPPLY CHAIN MAPPING
IN PRACTICE
• Denim is our core
• G-Star ‘Just the Product’
• We constantly reinvent denim
CORPORATE RESPONSIBILITY

Part of our DNA:

• Create denim
• For the future
• With care for
people and the planet
 CORPORATE RESPONSIBILITY

SUPPLY CHAIN PRODUCT OPERATIONS COMMUNITY

Direct Supplier Mapping

RELIABLE SUPPLIERS

 Stable
50% of our collection is made
by the same suppliers for over 10 years

 Small
+/- 30 direct suppliers
Direct Supplier Mapping

NEW SUPPLIERS

 SAQ
Which processes does the supplier have in-house?
Which have to be outsourced?

 Sourcing
Check during first visit (i.e. machinery present?)

 Declaration
Supplier declaration including subcontracting policy
Direct Supplier Mapping

EXISTING SUPPLIERS

 Planning sheets
Completed by suppliers before/during production:
Which style is produced at which production line at which date?

 Production sheets
Completed by suppliers after production:
● Cut/Sew ● Laundry/ Wash/ Dye ● Fabric
● Print ● Knit ● Yarn
● Embroidery ● Trim

 Regular visits
G-Star offices at production countries with sourcing &
compliance experts that check sheets
Fabric Supplier Mapping

BEYOND TIER 1

 Nomination
Nominated denim fabric suppliers
Partly nominated trim suppliers
Included in internal compliance process (focus environmental)

 Mapping
In process of mapping remaining fabric suppliers
Piority based on volume
Challenge; less familiar with compliance checks

 Certification
Trace back via material certification
GOTS, OCS, GRS, RDS, BCI
COMMUNICATION

MANUFACTURING MAP

 We are proud of our suppliers and want to share this with

our consumers

 World map with all direct suppliers we work with for

over 2 years

 Direct link from product in online store to supplier

MANUFACTURING MAP
SUPPLIER INFORMATION
 SUPPLY CHAIN MAPPING 101 - AGENDA
10:15 – 10:50 Speakers:
• Rolf Heimann, Executive Board, hessnatur stiftung
• Karin Ekberg, Founder & CEO, Leadership & Sustainability
• Maaike Kokke, Corporate Responsibility Manager, G-star RAW C.V.

10:50 – 11:00 Q&A

11:00 – 12:00 Table discussion – Mapping exercise

12:00 – 12:15 Wrap up

Moderation & Support:

• Simone Seisl, Consultant, Special Projects, Textile Exchange
• Carlotta Cataldi, Graphic Facilitation
 SUPPLY CHAIN MAPPING 101 – TABLE DISCUSSION
Instructions:
Rules:
• One conversation at a time: listen carefully to what others have to say,
don´t interrupt and makes sure every one at the table get a chance to
talk!
• Don’t be shy! Speak up and contribute to the discussion.
• All ideas are good ideas. Did you hear something different to what you
usually think? Embrace the differences, change your perspective. New
solutions might emerge…and surprise you!
• Use “Yes, and….” instead of “Yes, but…”
• Don’t get lost in the weeds! Stick to the company case example and
keep the mapping focus. Help your group regain concentration.

Company Cases:
 SUPPLY CHAIN MAPPING 101 - AGENDA
10:15 – 10:50 Speakers:
• Rolf Heimann, Executive Board, hessnatur stiftung
• Karin Ekberg, Founder & CEO, Leadership & Sustainability
• Maaike Kokke, Corporate Responsibility Manager, G-star RAW C.V.

10:50 – 11:00 Q&A

11:00 – 12:00 Table discussion – Mapping exercise

12:00 – 12:15 Wrap up

Moderation & Support:

• Simone Seisl, Consultant, Special Projects, Textile Exchange
• Carlotta Cataldi, Graphic Facilitation