Ensuring compliance and quality in leather manufacturing

The leather industry is changing rapidly due to stricter global regulations and shifting market demands. The EU has extended the Deforestation Regulation (EUDR) compliance deadline to December 2025, giving manufacturers more time to refine strategies and adopt advanced technologies. This extension allows them to meet regulations while improving efficiency and competitiveness. Based in New Zealand, Mindhive Global supports this shift with AI-powered quality assessment solutions, integrating optical technology into automated grading systems to meet industry needs.

This article was originally published in World Leather Dec 2024/Jan 2025 Issue.

A decade of change for leather manufacturing

Leather manufacturing has undergone significant changes over the past decade, as it moves further away from an artisanal craft to a more advanced, technology-driven process. This has been driven by advances in automation, artificial intelligence, and data analytics.

Mindhive Global, founded in 2011 with the aim of transforming industrial challenges through innovation, has played a key role in this development by integrating machine vision and AI-driven systems into automated leather grading. As a result, tanneries such as Bader, Crest Leather, and Tasman Tanning have reported improvements in product quality and operational efficiency.

The foresight to digitize quality assessment is proving to be a crucial advantage as the industry faces increasing regulatory scrutiny. Accurate, verifiable quality data forms the backbone of reliable traceability systems.

Many solutions prioritize tracking leather origins; however, Mindhive emphasizes that the effectiveness of traceability systems relies on the quality of the underlying data. By concentrating on precision and standardization, the company aims to ensure that its solutions address the requirements of quality assurance and traceability, thereby establishing a comprehensive framework for compliance and operational excellence. 

Digital grading: a catalyst for credible traceability

The industry currently requires a high level of speed, precision, and documentation due to market expectations and regulatory requirements.

Mindhive’s automated grading technology demonstrates the capabilities of advanced tools in addressing these demands. The system is capable of processing up to 360 hides per hour, achieving a grading accuracy of over 91%, which is a significant improvement compared to traditional manual inspection methods.

The system is distinguished by its capability to generate detailed, high-resolution digital records for each hide processed. This includes the detailed capture and categorization of defects, facilitating thorough quality documentation.

It also provides verifiable proof of the grading process and allows data to accompany each hide throughout its supply chain journey. When paired with unique serial numbers, this system supports complete traceability, promoting transparency and trust at every stage.

Digitizing quality data unlocks a host of benefits for manufacturers, including:

• Uniform grading standards across multiple production facilities, reducing variability.
• Objective and consistent evaluation of supplier performance based on data.
• Real-time production insights that enable swift adjustments and process optimization.
• Verified quality claims that enhance customer confidence and satisfaction.

Clear, visual explanation of grading/selection and creation of detailed defect maps with quality area identification can be generated to fit customer specific requirements.

Bridging quality assurance and traceability

The integration of quality assessment and traceability systems is not without its challenges. It requires careful planning and execution, focusing on three primary areas:

1. Data integration

• Seamless communication between grading systems, marking technologies, and ERP (Enterprise Resource Planning) platforms.
• Standardization of data formats to ensure compatibility across diverse systems.
• Real-time synchronization across geographically distributed production sites.
• Secure, cloud-based data storage that ensures accessibility and long-term security.

2. Process adaptation

• Optimization of workflows to incorporate automated assessment and grading processes.
• Comprehensive training programs to equip staff with the skills to interpret and use digital systems.
• Establishing clear standard operating procedures for data validation and handling exceptions.

3. Compliance documentation

• Automated generation of detailed traceability reports.
• Integration of traceability systems with reporting platforms.
• Creation of digital audit trails that provide transparency for inspections and certifications.
• Secure mechanisms for sharing traceability data with supply chain partners.

Mindhive’s solutions provide quality grading and integrate with marking technologies that connect grading data to physical identifiers. This approach facilitates end-to-end traceability throughout the production cycle, including intermediate processes such as wet-blue tanning, while ensuring the preservation of data integrity.

Addressing technical and operational challenges

Implementing advanced grading and traceability systems requires manufacturers to adopt a structured and methodical approach. The comprehensive framework addresses key technical and operational considerations, ensuring a smooth transition to these next-generation systems:

1. Production integration

• Installation that works alongside existing sammying machines, splitters, or conveyors without disrupting operations.
• Preservation of production line speeds to avoid any bottlenecks.
• User interfaces designed with local languages to accommodate global teams.
• Minimal production downtime during installation through efficient deployment strategies.

2. System architecture

• High-speed local data processing with resilience to internet outages for continuous operations.
• Durable, stainless-steel equipment designed to withstand harsh tannery environments.
• Hardware components to ensure system reliability and prevent downtime.
• Accessibility to hide data through the Mindhive Cloud or the tannery’s existing ERP systems.

3. Operational continuity

• Consistent system uptime, with real-time monitoring through dedicated dashboards.
• Predictive maintenance powered by automated remote monitoring to address potential issues proactively.
• Around-the-clock technical support and regular software updates to keep systems up-to-date and efficient.

Seizing the opportunity for a sustainable future

The extended EUDR timeline presents an opportunity for manufacturers to adopt innovative technologies and create an operational framework that is adaptable for the future. Embracing digital transformation, including advanced grading and traceability systems, could enable the leather industry to achieve:

• Compliance with emerging regulatory requirements.
• Improved operational efficiency and minimized variability across production sites.
• Enhanced customer trust through verifiable quality and traceability.
• A basis for ongoing improvement and long-term sustainability.

Utilizing such solutions might assist manufacturers in meeting compliance deadlines and positioning themselves effectively in the leather manufacturing industry.