Learning Series: Traceability in the Leather Supply Chain

Learning Series:

Traceability in the Leather

Supply Chain

Webinar 3: Traceability Solution Providers in the Leather Supply Chain

May 25th, 2021

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Disclaimer

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platform for stakeholders in the leather industry to engage with

each other, share information, and identify common challenges

and opportunities. To this end, we offer opportunities for diverse

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The views, thoughts, and opinions expressed in this webinar

belong solely to the speakers. As the leader of the RLRT, Textile

Exchange strives to maintain a neutral role.

5 webinars on Traceability in the Leather Supply ChainEDT CET

Webinar 1: Understanding Traceability and the UNECE

Guidelines

May 4th 10 -

11am

4 – 5pm

Webinar 2: Traceability Expectations of Sustainability

Standards in the Leather Supply Chain

May 20th 11am -

12pm

5 – 6pm

Webinar 3: Supply Chain Mapping and Traceability

Solution Providers in the Leather Supply

Chain

May 25th 10 -

11am

4 – 5pm

Webinar 4: Joint webinar with NWF and GRSB

Traceability at the farm level: focus on Brazil

June 1st 10 -

11am

4 – 5pm

Webinar 5: The Implementation of Traceability Solutions

in Leather Supply Chains: Brand Experience

June 8th 10 -

11am

4 – 5pm

• Supply chain mapping = Discovery

• A supply chain map is a visual representation of goods, information, processes and money

flows that occur throughout a supply chain both upstream and downstream. (Textile

Exchange)

• Traceability = Assurance

• Traceability is the ability to verify the history, location, or application of an item by means of

documented recorded identification. (ISEAL)

• Transparency = Disclosure

• Supply chain transparency captures the extent to which information about the companies,

suppliers and sourcing locations is readily available to end-users and other companies in the

supply chain. (Textile Exchange)

Supply chain mapping, Traceability, Transparency

Speakers

NICOLE LAMBERT

Textile ExchangePETER HUGHES

Eurofins|BLC

PAUL D'ARRAS

CTC

TONY BENSON

Applied DNA Sciences Inc

TWAN DE BIE

Vitelco Leather

BIRGITTE H. LANGER

SPOOR

Traceability Webinar 3 Agenda:

• Supply chain mapping:

• Eurofins- BLC Sustainability Services' supply chain mapping tool - Peter Hughes

• Traceability technologies applicable to the leather supply chain:

• CTC laser tagging – Paul D'Arras

• DNA applied – Tony Benson

• Leather suppliers that have implemented traceability solutions in their supply

chains:

• Vitelco Leather, Twan De Bie

• Spoor, Birgitte H. Langer

• Q&A

Eurofins | BLC Leather Technology Centre Limitedwww.blcleathertech.com

Managing sustainability issues in leather supply chains

Supply Chain Mapping

Drivers for traceability

• Environmental and social challenges

• Investment

• Legislation

• Customer demands

• Consumer awareness

• Industry programs / certification programs such as Textile Exchange - requirement

➢ Traceability can form the basis of strategic response to managing risk within supply chains

Eurofins | BLC Leather Technology Centre Limited

www.blcleathertech.com

• The global leather market is international, complex and multi-stepped.

• Finished leather producers are often sourcing semi processed leather from other regions of the world, who are in turn sourcing raw material externally.

• The result is that finished leather or leather goods are highly unlikely to originate from the country of purchase.

• Italy for example is one of the largest leather producers globally yet it imports over 90% of its raw material.

• Risk therefore exists up the supply chain, beyond the location of finished leather purchase.


Raw/finished material distribution

Slaughterhouses

in global locations

Crust to

finished

Finishing

Plants

Asia

Calving Farms

Fattening FarmsFinishing

Plants

Europe

Finishing

Plants

Local

Hide

Traders

Raw to

Finish

Tanners

Split

Traders

Split

Traders

Leather

Traders

Cattle

Traders

Auctions

Indirect farms

Product

manufacturing

Brands and

retail

Consumer

Tanned -

finished

Tanned

to crust

Raw to

crust

Wet Blue

Tanners

Wet Blue

Tanners

Multiple tanneries in global locations

Poor Visibility Good Visibility

Example: Bovine

Material

Potentially hundreds of thousands of farms

Data you are likely to have

Data will be very hard to get

Data BLC can help you get

Data you may have


The Leather Supply Chain

Map Know Understand Respond


Supply Chain Mapping – First Step

1

Collaborative

• Agree Number of Tier 1 Suppliers to be mapped

• Establish Project Parameters and timeframe

• Structure of Data Collection

2

Eurofins | BLC

• Project Launch

• Create Supplier Questionnaire

3

Client

• Distribute Questionnaires to suppliers

• Manage Responses

• Send Collated Data to Eurofins | BLC

4

Eurofins | BLC

• Review Data and address validity

• Check Leather Working Group (LWG) Certification status

• Plot Data and create Map

• Regional Cluster Analysis

• Prepare Report

5

Collaborative

•Eurofins | BLC Delivers Report through a Presentation

• Discussion of findings and next steps

• Follow up training webinar with users

2 - 4 Weeks 10 - 12 Weeks 4 - 6 Weeks

Timescale: 6 Months from initiation to completion


The Process: How it works

Full Supply Chain



An example supply chain

Individual Tier 1 Supply Chain


Leather Working Group Footprint



Example deforestation risk assessment

Example Risk Assessment Datasets


Animal Welfare Air Pollution

Drought Modern Slavery Regional Granularity

Detailed Deforestation

What Eurofins | BLC mapping a supply chain provides


• Knowledge and understanding of leather and of the supply chain

• Understanding of sensitivities

• Collaboration and delivery against industry group requirements

• Effective risk assessment and due diligence process

• Recommended actions

• Promotes questions within customer organisations

• Customers can interrogate their own data

• Effective response to third party requests

• Optional refresh projects to capture dynamic nature of supply chains

• Optional site auditing based on risk assessment results Satellite images of suppliers

• Visibility and Management over the leather supply chain is becoming increasingly important within thecontext of legislation compliance, NGO scrutiny and Brand reputation

• Mapping your supply chain is the crucial first step to traceability

• The Eurofins|BLC mapping product generates supplier data through supplier questionnaires andengagement. This is presented in a usable format that includes expert risk analysis

• The information can be used to; make informed decisions, respond to scrutiny, comply with legislation andunderstand better environmental and ethical risks such as water use, deforestation and modern slavery

• Commercial benefits can include; improvements to standardisation, quality control, consistency ofproduct, and price negotiation and rationalisation - generating commercial advantage


Supply Chain MappingTraceability in the Leather Supply Chain

Scope ProjectBuild

QuestionnaireGenerate

Tannery DataValidate, Risk Assess, Map

Presentation of Results

Traceability in the leather supply chain:full implementation on calf skins

Paul d’Arras

Innovation Project Manager / CTC

[email protected]

25th May 2021

Make it easy with CTC

A UNIQUE INNOVATION HUB DEDICATED TO THE LEATHER, LEATHER GOODS, FOOTWEAR, APPAREL INDUSTRIES

Research & DevelopmentTraining

ConsultancyAudits

Chemical and physical testing laboratories

Traceability: Context and objectives

• Animal Welfare

• Environment

• …Responsible Business

• Process quality

• Process regulation

• …Process improvement

• Upstream defects management

• Virtuous loop

• Supply managementQuality improvement

CTC Traceability system: From R&D

CTC Laser markingsystem

Marking on the grain

sidethrough the

hair

Unitarytraceability

Resist to the tanningprocesses

Unique ID per hide

CTC Traceability system: To Production

Paper labelFlaying

Salting workshop Laser marking of each hide

Beamhouse

Tri Wet Blue

Leather

Slaughterhouse

Hide / skintraders

Tannery

Manufacturer Control

Breeding

Automaticreading

1: Paper labeling

2: LASER MARKING SYSTEM OF CTC

2: From paper label to « in the flesh marking »

2: Marking evolution during the tannery process

Salted hides and skins Unhaired Wet Blue Semi finished Leather Finished Leather

3: Automatic INDUSTRIAL code reader during wetblue sorting

3: Automatic code reader on a leather’s stack

On a stack of leather on a pallet: Acquisition module by a matrix camera

4: Database

FARMER SLAUGHTERHOUSE TANNER

Ear tag Paper label Laser marker Auto reader

Defects sorting

Database

Passport

WhereWhenWhoId skin

WhereWhenWhoId skin

WhereWhenWhoId skin

WhereWhenWhoId skinMeal data

DefectsList

MANUFACTURER HIDE / SKIN TRADER

Many countries

> 10

Animal husbandry

Slaughterhouses

Hidetraders

Tanneries

> 10 0 0

4 0 3 (+ 2) 0

0 0 3 (+ 3) Close contact

Manufacturers

Thank you for your attention

Paul d’Arras

Innovation Project Manager / CTC

[email protected]

Q&A

25th May 2021

Providing Traceability in the Leather Supply Chain Using DNA Technology

Tony Benson, Managing Director, EMEA

© Copyright. 2021. All Rights Reserved. Applied DNA Sciences, Inc.

• NASDAQ-listed as APDN

• Corporate HQ in Stony Brook, NY; LineaRx subsidiary

• 60+ staff in US, UK, India; Distributors in US, EMEA,– Central Testing Laboratory in Ahmedabad, India

• Over 80 Worldwide issued patents and over 50 pending patent applications

• Regulatory and Accreditations– ISO 9001:2008 Certified/Registered (ANAB) – quality management– ISO/IEC 17025:2005 Accredited (A2LA) – testing and calibration– Following 2011 FDA Guidance on Physical Chemical Identifier (PCID)– Drug Master File submitted to FDA; cGMP work environment

• World’s largest PCR-based mass producer of DNA

Applied DNA Sciences

37© Copyright. 2021. All Rights Reserved. Applied DNA Sciences, Inc.

Proven Technology – Use Case Examples

Dept of Defense Textiles Leather Fertilizer Cash-in-Transit

Pharmaceuticals Cannabis Automotive Recycled Plastics

147 criminals convicted; 720 sentence years to date

Feathers / Down


The Essence of CertainT®


SigNature® Tag: What is it?

• Information-carrying molecular bar code

• Synthetic, engineered short-chain DNA fragments

• Designed and optimized for stability, recovery & ease of analysis

• Short, inert, inactive fragments: non-functional and non-GMO

• Generally Recognized as Safe (GRAS 3rd-Party assessed)

• Manufactured at scale by very large scale PCR

• One-time or repeat use

Define purpose / functionality

Assign molecular tag

A AG C T G C

Proprietary technology with multiple awarded and pending patents for design and formulation

Formulate with carrier at parts

per billion / trillion

Finish


Leather Traceability – How Does it Work?

1. Unique DNA tag(s) designed and allocated to tannery / brands

2. Tag added during finish – e.g. PU finish

3. Shoe manufactured using the tagged leather

4. Shoe can be tested at any point in the supply chain using portable test equipment or at Applied DNA laboratories

Note – A shoe is used only as an example of a leather product


Tag Finished LeatherAfter re-tanning at the finishing tannery, the SigNature® T molecular tag may be applied to finished leather in a coating. This tag can be used to identify the finishing tannery and / or brand.

The tag is added, for example, into a PU finish and sprayed onto the leather.

There are no changes to existing processes at the finishing tannery.

T A G


Test at the TanneryA QC inspection using SigNify® portable test equipment can be performed on the tagged leather prior to shoe manufacture ensuring authenticity and establishing point of origin

T E S T


Test at Shoe ManufacturerA test using SigNify® portable test equipment can be performed on the finished shoe prior to distribution

T E S T


Testing by BrandsBrands can perform on-site testing of tagged finished leather using SigNify® portable DNA authentication equipment to separate genuine items from fakes and provide enhanced traceability.

T E S T


Video Showing Portable Test Equipment

The following link demonstrates how the DNA test is carried out.

In this example it shows DNA testing of fertiliser pellets.

The testing of leather is carried out the same way: -

https://vimeo.com/208521988/b1fed10901


about:blank

Are we already DNA tagging leather?

✓ YES

✓ Have successfully completed DNA Tagging leather in commercial pilots in the World’s largest tanneries in ASIA for several top brands on footwear and proved the DNA can still be recovered after over 12 months

✓ If you are interested in providing your customers with traceability for your leather from the finishing tannery to the retail store please contact me [email protected]


about:blank

How can you achieve complete Traceability?

▪ Laser etching using ear tag data provides traceability from farm to finishing tannery

▪ DNA tagging on the hide during finishing provides traceability from the finishing tannery to the product manufacturer and the retail store

▪ If you want to be included in future commercial pilots we can easily arrange it


Contact Us:Applied DNA Sciences

50 Health Sciences Drive, Stony Brook, NY 11790 USAMain Tel: +1 631 240 8800

www. adnas.com

Tony Benson, Managing Director, [email protected]

+44 7552 429341


about:blank

Wat

Wie Datum

Aan wie

Traceability

Twan de Bie, Vitelco leather

May 25th, 2021

Traceability Webinar 3

Introduction

Ing. T.L.A. de Bie MBA

Managing Director

[email protected]

+31 620 536 481

nl.linkedin.com/in/twandebie

May

‘21

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Member of

Founded 1959

From livestock trader to veal producer

Family business, 2nd generation

650 employees

€ 485 mio. turnover

2nd largest veal producer in Europe

May

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Veal production

• Fully integrated chain

• Slaughter 350.000 calves / year

• 7.000 calf skins / week

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Controlledintegrated chain

• Every at Vitelco slaughtered calf is controlled and certified by SKV

• Concepts with extra welfare conditions like ‘Beter Leven’, ‘Vitel Oké’, etc.

• Fully integrated chain at PALI Group

www.skv.info

May

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Traceability

2 reasons for full traceability of calf leather

1. Full transparency for our customer

Sustainability and durability

2. Feedback to our farms

Improve quality

The NEED to know where your product came from and where it has been

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Traceability in leather

System:

Laser marking

Applied after selection

RFID label

Applied in fresh hide

Electronically readable

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Traceability in leather

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If you know the calf, you know everything

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Planning

System ready next month

Start marking hides

Supply traceable hides

Finetune technique

Implement reading

Supply laser traceability system

Thank you

Ing. T.L.A. de Bie MBAManaging Director

[email protected]+31 620 536 481nl.linkedin.com/in/twandebie

Tel: +31 544 39 26 00

Fax: +31 544 39 26 26

[email protected]

Aaltenseweg 4

7131 ND Lichtenvoorde

Nederland

Our guarantees

Wide selection Continuous availability Consistent quality Traceability Integrated chain

https://www.linkedin.com/feed/update/urn:li:activity:6755031931542401024/

Q&A

TextileExchange.org

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Learning Series: Traceability in the Leather Supply Chain

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