2019 Textile Exchange Sustainability Conference

The 2019 Textile Exchange’s Sustainability Conference took place in Vancouver, Canada during the week of 15-18 October 2019.

This conference brings together a powerful and inspiring global community across the industry. Every year the conference expands tremendously and this year’s conference brought together over 900 participants from 46 countries who joined forces to take action and accelerate change.

The Textile Exchange (TE) a global non-profit organisation envision a global textile industry that protects and restores the environment and enhances lives. Their goal is to embed sustainability into evolving business and supply chain strategies.

TE recognised the leading work OrganiMark is doing and invited Heinrich Schultz, MD of OrganiMark, to present these best practices at two conference sessions, namely:

  1. The session on recent developments in Tools and Technology in the global Marketplace, at which Heinrich presented his co-founding of the “Custodian Solution” an integrated industry value chain model and traceability protocol which focus on sustainability, fractal traceability and operations visibility.
  2. The round table session on Responsible Leather, where Heinrich shared the breakthrough in marking raw sheepskins that provides for individual sheep skin traceability from farm to finishing tannery. OrganiMark is working with Saint Laurent brand and the Kering Group to develop the world’s first leather industry value chain operations visibility platform.

Overall the week was a great success, feel free to have a sneak peak of the video with some highlights of the conference:

Highlights of the 2019 Textile Sustainability Conference

OrganiMark’s Unique Integrated Supply Chain Programme

OrganiMark brings you the solution of creating a unique integrated supply chain programme (ISCP) to improve the capacity and competitiveness of your industry in a sustainable manner. It supports ‘near sourcing’ and ‘quick response’ and provides for supply chain transparency, price stability and stakeholder trust.

A Serious Team That Believes in Having Serious Fun

As they say: All work and no play, makes Jack a dull boy… At OrganiMark we are a serious team that believes in having serious fun!

In the words of Steve Jobs:

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.”

Innovative ideas are developed during creative moments.

New York, New York, October 2017. Paulo Goncalves, Heinrich Schultz and Ruan Schultz.

Food for thought – Heinrich Schultz.

OrganiMark strategy session, December 2017, presented by Coenie de Villiers:

From left to right: Inge Kruger, Christine van Niekek, Tanya Aucamp, Coenie de Villiers, Ruan Schultz, Kaoma Chileshe, Paulo Goncalves, Chis de Wet and Gloria Goncalves.

Heinrich Schultz, Coenie de Villiers and Chris de Wet.

Year-end function December 2017. From the back, left to right: with Ruan Schultz, Francoise Pieterse, Simon Kruger, Chris de Wet, Stephne McGee, Tanya Aucamp, Inge Kruger, Paulo Goncalves, Heinrich Schultz, Glenda De Wet, Kaoma Chileshe and Partner, Anli Goncalves, Gloria Goncalves, Beni Letebele and Christine van Niekerk.

OrganiMark sponsors Vaalharts Golf Day, March 2018:

Mark Karsten, Johan de Villiers, Heinrich Schultz and Paulo Goncalves.

OrganiMark team wins the Potjiekos competition – Johan de Villiers, Heinrich Schultz, Paulo Goncalves and the ‘chef’ Ruan Schultz.

The 2017 Textile Exchange Sustainability Conference

The 2017 Textile Exchange’s Sustainability Conference took place near Washington D.C. during the week of 9-13 October. According to the event organisers, this was their largest conference to date, with over 500 people participating from 37 countries and 328 different companies.

The Textile Exchange (TE) is a global non-profit organisation that works closely with their members to drive industry transformation in preferred fibers, integrity and standards and responsible supply networks. They identify and share best practices regarding farming, materials, processing, traceability and product end-of-life to reduce the textile industry’s impact on earth’s water, soil and air, as well as on the human population. OrganiMark, with retail members of the Sustainable Cotton Cluster (SCC) attended this conference.

Both OrganiMark and the SCC (as Cotton SA) were sponsors of the 2017 TE’s Sustainability Conference and played a prominent role during this international event. Heinrich Schultz, MD of OrganiMark, had the honour of acting as programme director for the opening day of the conference.

The TE inspires and equips its members to accelerate sustainable practices in the textile value chain, focusing on minimising the harmful impacts of the global textile industry and maximising its positive effects. For us, as a South African cotton textile and apparel programme, the TE provides meaningful international benchmarking opportunities.

Some photo highlights from the conference:

South African delegates at the 2017 Textile Exchange Conference:

Back: Kyle Matthews (MRP Group), Noël Paulson (Edcon), Tanya Aucamp (SCC) Heinrich Schultz (OM), Ruan Schultz (OM), Ralph Jewson (Woolworths) and Paulo Goncalves

Front: Gloria Goncalves (OM), Inge Kruger (OM), Imraan Bux (Imraan Textile Mills), Christine Schultz (SCC), and Alison Lloyd (Woolworths).

 

South African stakeholders who are part of the Sustainable Cotton Cluster programme:

Back: Kyle Matthews (MRP Group), Heinrich Schultz (OM), and Ralph Jewson (Woolworths).

Front: Noël Paulson (Edcon), Imraan Bux (Imraan Textile Mills), and Alison Lloyd (Woolworths).

 

OrganiMark team members Inge Kruger, Gloria Goncalves, Heinrich Schultz, Christine van Niekerk and Tanya Aucamp (representing the SCC).

 

The Schultz brothers, Ruan and Heinrich – proudly South African.

 

A crazy photobooth moment…

Cotton Industry Revival

By Antoinette Slabbert. Originally posted on MoneyWeb, 9 November 2017.

Big retailers commit to orders, spurring development.

The demise of the cotton industry along with the rest of the South African textile industry as a result of cheap imports from the East has been well documented.

In the late 1980s the country produced about 80 000 tons of cotton fibre, but in 2013 it was only 5 200 tons.

The turnaround has however started and is gathering momentum, with an output of 17 000 tons this year, and 40 000 tons projected for next year. Local beneficiation has grown from 7% in 2013 to 42% currently.

The turnaround already benefits the whole supply chain from farmer – some small-scale and some commercial – to retailers like the Mr Price Group, Woolworths, Ackermans, and Edcon.

It is a direct result of the Department of Trade and Industry’s (dti) Clothing & Textiles Competitiveness Programme (CTCP) that was developed in response to the crisis that cost the industry 101 000 jobs between 2002 and 2010.

It started in 2013 when the dti approved a plan, submitted on behalf of Cotton SA, to fund an industry forum representing role players in the land based textile industry, says Heinrich Schultz, spokesperson of the Sustainable Cotton Cluster as this forum is now known.

The Sustainable Cotton Cluster is a multi-stakeholder initiative, and the first cluster in the SA textile industry that is operating nationally.

The aim of the Cluster is to create an enabling environment along the whole supply chain for the entire industry to grow.

To that end, the stakeholders include suppliers of agricultural inputs, small-scale as well as commercial farmers, agro-processors, textile and clothing manufacturers, retailers and consumers.

The manufacturing phase includes ginning and spinning to process the cotton fibre to yarn, then knitting or weaving to produce fabrics, then dying, printing and cut, make and trim to finish the product.

The success so far is the result of a number of interventions at different stages of the supply chain, says Schultz. In one such intervention, the Cluster researched and demonstrated cotton stripper harvester technology to farmers to improve dry-land cotton production yields. This enabled the revival of dry-land commercial cotton farming, which used to be the backbone of cotton production in the 1980s, but became all but non-existent due to the high cost of harvesting.

Other interventions include the innovation of business processes to ensure the industry continuously improves its competitiveness, the introduction of a cloud-based IT platform to ensure traceability of the product and the development of financing and insurance products.

Each intervention is contracted with clearly defined key performance indicators. The Industrial Development Corporation (IDC) manages the financing for these Cluster interventions on behalf of the dti.

One of the Cluster’s key successes is that it is able to obtain a legal commitment from the retailer to purchase the cotton fibre 12 to 18 months in advance. On the basis of these retailer commitments, the whole supply chain is contracted right back to the farmer, who has a buyer for his product before he has planted or completed his harvest.

This legal commitment unlocks new financing options, especially for small-scale farmers who do not own the land they cultivate, Schultz says.

It works as follows: The farmer plants his cotton around October/November. During this period or in the preceding months, the retailer issues his promissory note, which is his legal commitment to buy the end-product and confirms the quantity of cotton needed.

The cotton is harvested in April and the ginning process follows from May. Spinning takes place from June and July typically follows with the knitting and weaving processes. By August and September, the final product is manufactured and in October it should be in the retailer’s distribution centre.

The full cycle takes 12 to 18 months, which means the Cluster is able to integrate retailers’ 18-month trend forecasting into the supply chain. The Cluster develops the integrated supply chain plan for the retailer and ensures costing at every stage in order to ensure a competitive price point.

The Cluster has so far concluded 11 such integrated supply chain programmes and has contracts with the Mr Price Group, Ackermans, Woolworths and Edcon.

Each programme is ring-fenced to ensure the retailer’s confidentiality.

The product range includes underwear, sleepwear, general knitwear; including T-shirts, toweling and jeans and chinos.

In fact, if all the cotton currently in the supply chain is expressed in T-shirts, the industry is now producing R2.4 billion worth of T-shirts per annum and the target by 2018 is to produce R4.2 billion per annum.

Schultz says the market potential in South Africa is 300 000 tons of cotton, compared to the 17 000-ton fibre production this year. Cotton supply chains can later be expanded into the region, he says.

He says cotton is a known cash crop for small-scale farmers. It is drought resistant and serves as a valuable nitrogen-fixer in crop rotation. In fact, in commercial production the maize and wheat yield increase by about 10% if it is preceded by planting cotton, he says.

It is therefore one of the Cluster’s objectives to stimulate cotton production among small-scale farmers.

The early legal commitment of retailers has unlocked off-balance sheet financing for farmers and other stakeholders in the supply chain.

Schultz says while traditional financial institutions initially gave “the glazed doughnut look” when we asked for off-balance sheet financing, the Gro-Capital division of Afgri made a revolving facility available that currently stands at R25 million, but will total R75 million over five years.

The Cluster facilitates the financing agreements and has also developed insurance products with underwriters such as Swiss RE and Guard Risk to mitigate the finance risk.

The Cluster has also facilitated the financing of the investment in new capacity at one of the gins to accommodate the growing harvest.

The four spinning plants (down from 22 in 2000) are currently operating at almost full capacity and represents the biggest industry bottleneck, Schultz says. The Cluster is currently investigating options to address the expansion of spinning capacity.

“If only 50% of the T-shirt, towelling, chino and underwear market is localised, there will be an interim capacity gap, but with the potential to create 75 000 jobs,” he says.

The current five-year agreement with the dti Cluster funding continues until March 2019, but indications are that it could be extended for a further five years.

 

 

 

Efficiency through Stability and Trust

Efficiency through Stability and Trust

Out Of The Box: OCRT Thoughtleader Interview Series – Heinrich Schultz

Originally published by the Textile Exchange.

Heinrich Schultz is Managing Director of OrganiMark South Africa, sponsor of the Out Of The Box interview series. Here, he explains how he has brought Quick Response Models and Sustainable Sourcing together in an Integrated Supply Chain which benefits everyone at every stage of the chain. Securing commitment builds trust, increases efficiency and reduces cost, and there are lessons for other regions in Heinrich’s story.

Find more interviews and videos from the Organic Cotton Round Table here.