There are many technical functionalities that can help improve sustainability in cosmetics supply chains such as audit management, supplier assessment or certification management, but there are two functions that stand out and are universally applicable to any supply chain. Traceability and supply chain mapping, although comparatively more difficult to implement, actually yield the most benefits.
Increase visibility with supply chain mapping
With supply chain mapping, all stakeholders in your supply chain are identified and linked. This can be done by having your tier 1 suppliers onboard their own suppliers, who on their turn do exactly the same. Gradually this will create a map so you can see where the individual ingredients come from. This is tedious work, but very important to identify potential risks in the supply chain.
Traceability in cosmetics supply chains
A next step is traceability, where deliveries of raw material ingredients and semi-finished products are connected all the way from the source till the end product. Registration at each step of the supply chain is needed, connecting ingredients with semi-finished products and final products. There are multiple so-called Chain of Custody models to do this.
Identity preserved is the most complex one, where a direct link is created between final product and the source of all individual ingredients, usually at the batch level. Segregation is used when you want to exclude non-sustainable materials from your products. There is no direct link between source and final product, but you will know that it is sourced from multiple sustainable and responsible sources. In some cases however, segregation is not possible. In these cases, the option to use mixed sustainable and non-sustainable sources is accepted and the percentage of sustainably sourced materials is tracked. This is called mass-balance. The last Chain of Custody model is Book & Claim, adapted for sectors that are less mature and have less sustainable products available. Sustainable sourced physical materials and the accompanying sustainability claims are traded separately on a market place.
ChainPoint helps cosmetics companies to connect their supply chains and make them more visible and transparent. Using advanced web-based software, we connect all stakeholders and data sources in a supply chain and bring them into a secure online platform, enabling full visibility and traceability. This enables cosmetics brand owners and producers know exactly the impact they have in a supply chain and can act accordingly. Corrective measures and improvement programmes can be managed using the information gathered across the supply chain to fully mitigate risks, improve sustainability and seize new opportunities.
Cosmetics Solution Paper
In our latest solution paper we have highlighted the challenges and how ChainPoint’s technology can help solve them. Please download this complimentary report using the button below.