Application Tool: Clothing Alliance Released The Classification Of Supply Chain In Textile, Clothing And Fashion Industries

In December 2024, Apparel alliance released the Supply Chain Classification of Textile, Clothing and Fashion Industries to establish a unified supply chain classification system for the industry.

1. Overview

Clothing Alliance was established by Apparel Impact Institute, Cascale, Textile Exchange and ZDHC. The goal is to reduce greenhouse gas emissions by at least 45% by 2030. One of the key tasks is to develop "standardized goals and measurement tools", of which this supply chain taxonomy is a part.

The textile industry commonly uses supply chain hierarchy (1-4 levels) classification, but there is inconsistency between the definition and classification, such as the hierarchy of "pulp" and "fiber" is different. The unified classification system can bring many benefits, including clear and consistent communication, transparent and responsible reporting, effective risk management, efficient collaboration and industry improvement.

2. Methods

Create a taxonomy based on the previous basic work of supply chain mapping and classification, as well as key terms and definitions in relevant regulations and standards. For example, refer to the research of WRI, Aii, UNEP, etc., as well as the classification of EU regulations, ISO standards, and Textile Exchange.

The development process consulted internal and external stakeholders. The taxonomy is not exhaustive and follows the principles of consistency with regulatory terminology, inclusiveness of multiple materials, simplicity and flexibility, focus on supply chain upstream to retail, consistent data aggregation and alignment with existing industry efforts. Key alignments have been established in raw material processing, non fiber material classification, and vertical integration facility handling.

Framework: It includes cotton, wool, silk, various chemical fibers, leather, natural rubber and other key fibers and raw materials. It shows the main processes and output examples at all levels from Tier 4 raw material production and primary processing to Tier 0 brand and retail in the form of a table, such as the process of cotton from planting, harvesting to the final product. At the same time, it points out that the framework is not comprehensive, Different raw materials and products will be treated differently at different levels.

3. Classification and definition

Supply chain level: divided into Tier 0 - Tier 4, Tier 0 refers to brand, retail and distribution, Tier 1 refers to finished product manufacturing, Tier 2 refers to material manufacturing, Tier 3 refers to intermediate material processing, and Tier 4 refers to raw material production and primary processing. The names and functions of all levels are described respectively.

Output categories: including raw materials/raw materials (RMF), processing raw materials (PRM), intermediate materials (IM), finished materials (FM) and finished products (FP), and each term is defined in detail, for example, RMF includes raw materials and recycled materials.

(Source: website of Ministry of Commerce)