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PKLT to bring traceability in Uzbek cotton supply chain
Feb '18
PKLT to bring traceability in Uzbek cotton supply chain
Port Klang Logistic Terminal (PKLT), Malaysia's 1st cotton supply chain think tank, has signed a joint initiatives agreement with seasoned cotton commodity transshipment handling and supply chain management firm, Deltabar Logistics, focusing on bringing more transparency and traceability in the supply chain of Uzbek cotton and related value added.

A majority of cotton is grown in developing countries. Lack of transparency in cotton production leads to decreased product integrity, impacting the environment and the well-being of many people. The agreement comprises of several key milestones that are focused on primarily mapping out a supply chain process which is backed by policy and procedures, fully transparent. The digital documents will be filed into a dedicated OCR enabled ledger registry.

"Cotton goes through many hands, from traders to spinners, and there are all sorts of transactions that happen. In the current form, it is not a very transparent supply chain. CIS's cotton supply chain cross borders by rail, trucks, and ocean marine modalities. Uzbek cotton and yarn are facilitated in transit from origin to consuming markets such as Bangladesh or Vietnam" Nasrollah Rahemi, director of operations, Deltabar Logistics.

"The solutions to complex issues are not simple. Accelerators such as Blockchain Fintechs have the ability to impact positively from supply to value chain providing requires transparency helping the issue of supply chain transparency. A multi tiered effort with synergy is required," said Krishnan Ramamurthi from PKLT.  

"With this initial baby steps that have long term deliverables to concerned stakeholders, commercial and governments, premium on goods is a key motivating factor. That in addition to savings harnessed from supply chain optimisation will enable Uzbek cotton and its value added products over come market access related issues," PKLT said in a press release. (RR)

Fibre2Fashion News Desk – India

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