At the spinning-mill level, this allows the system to ensure that each spinning mill’s sales of CmiA yarn do not exceed its purchased volume of CmiA cotton. Once a spinning mill has used up its digital stock of CmiA cotton, the mill must purchase new CmiA cotton. Without a positive cotton inventory, no yarn transactions can be made through the SCOT system.
The same concept applies to the other levels as well: Fabric producers must purchase enough CmiA yarn to cover the CmiA fabric they sell, and textile producers must purchase sufficient quantities of CmiA yarns or fabrics before being able to fulfil CmiA orders through the system.
Once all members of the CmiA supply chain have recorded and confirmed the relevant CmiA purchases and sales, the CmiA supply chain for the retailer’s CmiA orders is complete.
On the one hand, the system offers transparency along the entire supply chain, on the other hand, by assigning purchase quantities to sales and converting yarn quantities to cotton quantities, the corresponding amount of CmiA cotton requested can be traced.
Other levels of the supply chain (such as yarn trader or dye houses) also use their SCOT accounts to record or confirm their CmiA sales or purchases in the system.