[[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article","articleBody":"More brands than ever are releasing versions of sustainably sourced goods through a semi-closed loop production process.\u00a0\nA semi-closed loop production process involves using recycled goods to create net new products, otherwise known as up-cycling.\u00a0\n \nSustainable distribution: Profitability with purpose\n From an economic perspective, sustainable distribution can seem challenging, but there are ways wholesale distributors can go green and still be profitable. \nHere are just a few of the brands using recycled plastic in their products, or that released entire lines made of recycled plastic bottles:\nRothys: Slip on shoes made entirely of recycled plastic bottle fiber.\u00a0\nEverlane: Launched three outwear pieces made of recycled plastic fiber, called ReNew.\n4Ocean: A bracelet company that makes bracelets (and bottles, etc.) out of recycled plastic, but that also helps to remove plastics from our oceans.\u00a0\nDoris Sleep: A rising bed pillow startup focusing entirely on recycled plastic fiber fill (most pillows are made from virgin plastics).\u00a0\nGirlfriend Collective: an emerging athleisure startup known for its affordable athletic wear made from recycled plastics like bottles and fishing nets.\nAllbirds: best-known for their sustainability in other materials, with a main collection made from merino wool, one made from Eucalyptus pulp, and another more recently released of flip-flops made from the first carbon-negative EVA foam made from sugar cane. The company also makes its laces out of 100% post-consumer recycled plastic bottles.\nIt\u2019s a trend that millennials and Gen Z are pushing forward \u2013 often in response to climate change anxiety or simply for wanting more visibility and transparency into production practices by the brands they spend their money with.\u00a0\nWhile this semi-closed loop production process is certainly better than virgin plastic use in production processes, it isn\u2019t exactly closed loop production.\u00a0\n \nThe ethical supply chain: Definition, examples, stats\n Consumers expect more from the brands they buy from, and an ethical supply chain is now a requirement. Learn what it means and how to get started. \nWhat is a closed-loop production supply chain model?\nClosed loop production processes are those that reuse material waste created during the production process for additional products, as well as use the recycled products to create new items.\nAccording to Green Matters:\u00a0\u201cWhen a company says it uses a closed-loop system, it\u2019s referring to its supply chain. Under a closed-loop system, businesses reuse the same materials over and over again to create new products for purchase. It\u2019s a way to conserve natural resources and divert waste from the landfill, and increasingly, more companies are adopting it.\u201d\nThis is important because there\u2019s so much extra material and textile waste that\u2019s historically just been thrown out. \nIn the US alone, more than $500 billion of value is lost annually due to clothing under-utilization and the lack of recycling. Globally, less than one per cent of materials used to produce clothing is recycled into new clothing, representing a loss of more than $100 billion worth of materials each year.\nThere is value here for both a business\u2019s bottom line and global sustainability. At our current pace, the fashion industry will use up more than 25% of the world\u2019s entire carbon budget by 2050.\n \nGive people what they want: A sustainable business model\n Consumers, investors, and partners are increasingly making decisions about your company based on a sustainable business model. Here, we examine the rise of sustainability as a business value. \nLeaders in closed-loop supply chain\nAs semi-closed loop supply chain and production processes become more popular in the US, are there any brands currently taking a closed-loop supply chain approach? \nAbsolutely.\u00a0\nNike\u2019s Closed-Loop Supply Chain\nNike flies pretty under the radar with their sustainability efforts, but they are one of the leaders in the industry. \nAs of 2018, more than 75% of all Nike products contained some sort of recycled textiles, and Nike uses more recycled polyester in the industry than anyone else.\nHere are a few sustainability facts about their Air product alone:\nA dye-coloring process for Air soles allows 99% of recoverable dye water to be recycled\nAll Air sole innovations designed since 2008 are composed of at least 50% recycled manufacturing waste.\nToday, Nike Air Manufacturing Innovation facilities divert more than 95% of manufacturing waste from landfills \u2014 that\u2019s 51 million pounds of materials (the equivalent of nearly 10 Olympic-size swimming pools) from May 2016 to 2017 alone.\nThe new Nike Air Max 270 Air sole boasts one of the largest, tallest, and most visible cushioning systems to date and contains more than 70% recycled manufacturing waste.\nThe VaporMax Air sole, which contains more than 75% recycled material, has allowed Nike to remove the need for a foam mid-sole.\nNike has also launched the Nike Waste Minimum Program. The program sets expectations for management commitment, creates a hierarchy of waste where disposal is a last resort, details separation and handling waste for recycling and enables data collection and reporting for accountability. It outlines the elements necessary for factories to establish a strong foundation for waste management.\nThis kind of full supply chain waste minimization effort is some of the most comprehensive in the world, and necessary for both larger and smaller organizations to begin doing right now to curb carbon emissions and reduce net new product production.\u00a0\n \nSustainability in business: Key to brand survival, large and small alike\n Sustainability in business is critical for brand survival as consumers want brands who share their values. For small and midsize businesses - which have no margin for error - it\u2019s especially critical. \nFor Days\u2019s Closed-Loop Supply Chain\nYou don\u2019t have to be a giant organization to implement a closed-loop supply chain and business model. \nFor Days is a fashion startup fighting against the concept of fast fashion with a closed loop business model. When customers sign up for a For Days subscription, they receive a bundle of shirts, ranging from basic tank tops to sweatshirts. \nOnce the clothes are worn down, stained, or torn, subscribers send them back for a new set \u2014 derived directly from those used threads.\n\u201cRecover is our recycling partner \u2013 They are a mill based in Spain and North Carolina and have been working on recycling for 70 years,\u201d reads For Days\u2019s Your Impact page. \u201cThe process entails chopping up old clothing, turning it into a pulp, and then spinning new yarn. This process produces almost zero green house gas and requires no water. For Days then takes that yarn and turns it into new proprietary fabrics and products.\u201d\n \nSustainability in fashion: Industry teeters on ethical catwalk\n Fashion is a $2.5 trillion industry, producing 10% of global carbon emissions, 20% of global wastewater, and vast biodiversity loss. Consumers are demanding change, forcing sustainability in fashion as a requirement, not a trend. \nWhich materials are usually used?\nAny material can be used in closed loop recycling! Most of the material used now is recycled plastic or fabric. Both of these can cleaned, chopped up, and turned into fabric (polyester) or new yarn.\u00a0\nMore and more brands are moving toward closed-loop supply chains and business models as an extension of their customer service. \nThe Billie Upcycling Innovation, which won an award from The Global Wellness Summit in 2019, has been tracking this trend \u2013 and helping both consumers and brands understand the dire issue at hand:\n\u201cIn the US alone, clothing consumption has doubled to 14 million tonnes a year in under two decades. Unfortunately, this also means that billions of used clothing are thrown away each year to make room for the new ones. Often, our first thought of recycling clothing is to donate to charities and foundations. However, only about 0.1 per cent of recycled clothing collected by charities and take-back programmes is used to make new textile fibers.\u201d\nChase zero: Zero waste. Zero emissions. Giants don\u2019t need a footprint to make their mark. Run sustainably with the best.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2019\/07\/Tracey-Wallace-150x150.jpg"},"name":"Tracey Wallace","sameAs":"https:\/\/twitter.com\/TraceWall","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/"},"dateModified":"2021-11-17T18:12:48+00:00","datePublished":"2020-01-23T08:00:00+00:00","description":"Closed-loop production systems drive sustainability across the entire supply chain, eliminating waste and clearing a path for a circular economy.","headline":"Closed loop production: Sustainability across the supply chain","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/01\/closed_loop_production-1200x630.jpg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/","name":"Closed loop production: Sustainability across the supply chain","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and 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B2B.","@id":"https:\/\/www.the-future-of-commerce.com\/"},{"@type":["Article"],"@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article","@context":{"@vocab":"http:\/\/schema.org\/","kg":"http:\/\/g.co\/kg"},"url":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/","publisher":[{"@id":"https:\/\/www.the-future-of-commerce.com\/"}],"author":[{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_author_Person","image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_author_Person_image_ImageObject","url":"https:\/\/cdn-bijap.nitrocdn.com\/AuMaQmessFRMSicXmZsEecJFLEquAyoT\/assets\/static\/optimized\/rev-b3d386d\/wp-content\/uploads\/2019\/07\/Tracey-Wallace-150x150.jpg"}],"sameAs":"https:\/\/twitter.com\/TraceWall","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/","name":"https:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/tracey-wallace\/"}],"subjectOf":[{"@type":"FAQPage","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_subjectOf_FAQPage","mainEntity":[{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity0","name":"What is a closed-loop production supply chain model?","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity0_acceptedAnswer_Answer","text":"Closed loop production processes are those that reuse material waste created during the production process for additional products, as well as use the recycled products to create new items.<\/span><\/strong><\/span>According to <\/span>Green Matters<\/span><\/a>: <\/span>\u201cWhen a company says it uses a closed-loop system, it\u2019s referring to its supply chain. Under a closed-loop system, businesses reuse the same materials over and over again to create new products for purchase. It\u2019s a way to conserve natural resources and divert waste from the landfill, and increasingly, more companies are adopting it.\u201d<\/span>This is important because there\u2019s so much extra material and textile waste that\u2019s historically just been thrown out. <\/span>In the US alone, more than <\/span>$500 billion of value<\/span><\/a> is lost annually due to clothing under-utilization and the lack of recycling. Globally, less than one per cent of materials used to produce clothing is recycled into new clothing, representing a loss of more than <\/span>$100 billion<\/span> worth of materials each year.<\/span>There is value here for both a business\u2019s bottom line and global sustainability. At our current pace, the fashion industry will use up more than <\/span>25% of the world\u2019s entire carbon<\/span><\/a> budget by 2050.<\/span>"}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity1","name":"Leaders in closed-loop supply chain","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity1_acceptedAnswer_Answer","text":"As semi-closed loop supply chain and production processes become more popular in the US, are there any brands currently taking a closed-loop supply chain approach? <\/span>Absolutely. <\/span>Nike flies pretty under the radar with their sustainability efforts, but they are one of the leaders in the industry. <\/span>As of 2018, more than 75% of all Nike products contained some sort of recycled textiles, and Nike uses more recycled polyester in the industry<\/a> than anyone else.<\/span><\/strong><\/span>Here are a few sustainability facts about their Air product alone:<\/span><\/strong>
  • A dye-coloring process for Air soles allows 99% of recoverable dye water to be recycled<\/span><\/li>
  • All Air sole innovations designed since 2008 are composed of at least 50% recycled manufacturing waste.<\/span><\/li>
  • Today, Nike Air Manufacturing Innovation facilities divert more than 95% of manufacturing waste from landfills \u2014 that\u2019s 51 million pounds of materials (the equivalent of nearly 10 Olympic-size swimming pools) from May 2016 to 2017 alone.<\/span><\/li>
  • The new <\/span>Nike Air Max 270<\/span><\/a> Air sole boasts one of the largest, tallest, and most visible cushioning systems to date and contains more than 70% recycled manufacturing waste.<\/span><\/li>
  • The VaporMax Air sole, which contains more than 75% recycled material, has allowed Nike to remove the need for a foam mid-sole.<\/span><\/li> Nike has also launched the <\/span>Nike Waste Minimum Program<\/span>. The program sets expectations for management commitment, creates a hierarchy of waste where disposal is a last resort, details separation and handling waste for recycling and enables data collection and reporting for accountability. It outlines the elements necessary for factories to establish a strong foundation for waste management.<\/span>This kind of full supply chain waste minimization<\/a> effort is some of the most comprehensive in the world, and necessary for both larger and smaller organizations to begin doing right now<\/a> to curb carbon emissions and reduce net new product production. <\/span>You don\u2019t have to be a giant organization to implement a closed-loop supply chain and business model. <\/span>For Days<\/span><\/a> is a fashion startup fighting against the concept of fast fashion<\/a> with a closed loop business model. When customers sign up for a For Days subscription, they receive a bundle of shirts, ranging from basic tank tops to sweatshirts. <\/span>Once the clothes are worn down, stained, or torn, subscribers send them back for a new set \u2014 derived directly from those used threads.<\/span><\/span><\/strong>\u201cRecover is our recycling partner \u2013 They are a mill based in Spain and North Carolina and have been working on recycling for 70 years,\u201d reads For Days\u2019s <\/span>Your Impact page.<\/span><\/a> \u201cThe process entails chopping up old clothing, turning it into a pulp, and then spinning new yarn. This process produces almost zero green house gas and requires no water. For Days then takes that yarn and turns it into new proprietary fabrics and products.\u201d<\/span>"}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity2","name":"Which materials are usually used?","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#subjectOf_FAQPage_mainEntity2_acceptedAnswer_Answer","text":"Any material can be used in closed loop recycling! Most of the material used now is recycled plastic or fabric. Both of these can cleaned, chopped up, and turned into fabric (polyester) or new yarn. <\/span>More and more brands are moving toward closed-loop supply chains<\/a> and business models as an extension of their customer service<\/a>. <\/span>The Billie Upcycling Innovation<\/span><\/a>, which won an award from <\/span>The Global Wellness Summit in 2019<\/span>, has been tracking this trend \u2013 and helping both consumers and brands understand the dire issue at hand:<\/span>\u201cIn the US alone, clothing consumption has doubled to 14 million tonnes a year in under two decades. Unfortunately, this also means that billions of used clothing are thrown away each year to make room for the new ones. Often, our first thought of recycling clothing is to donate to charities and foundations. However, only about 0.1 per cent of recycled clothing collected by charities and take-back programmes is used to make new textile fibers.\u201d<\/span>"}]}]}],"image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#Article_image_ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/01\/closed_loop_production-1200x630.jpg","width":"1200","height":"630"}],"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/","articleBody":" More brands than ever are releasing versions of sustainably sourced goods through a semi-closed loop production process.  A semi-closed loop production process involves using recycled goods to create net new products, otherwise known as up-cycling.  Sustainable distribution: Profitability with purpose From an economic perspective, sustainable distribution can seem challenging, but there are ways wholesale distributors can go green and still be profitable. Here are just a few of the brands using recycled plastic in their products, or that released entire lines made of recycled plastic bottles: Rothys: Slip on shoes made entirely of recycled plastic bottle fiber.  Everlane: Launched three outwear pieces made of recycled plastic fiber, called ReNew. 4Ocean: A bracelet company that makes bracelets (and bottles, etc.) out of recycled plastic, but that also helps to remove plastics from our oceans.  Doris Sleep: A rising bed pillow startup focusing entirely on recycled plastic fiber fill (most pillows are made from virgin plastics).  Girlfriend Collective: an emerging athleisure startup known for its affordable athletic wear made from recycled plastics like bottles and fishing nets. Allbirds: best-known for their sustainability in other materials, with a main collection made from merino wool, one made from Eucalyptus pulp, and another more recently released of flip-flops made from the first carbon-negative EVA foam made from sugar cane. The company also makes its laces out of 100% post-consumer recycled plastic bottles. It\u2019s a trend that millennials and Gen Z are pushing forward \u2013 often in response to climate change anxiety or simply for wanting more visibility and transparency into production practices by the brands they spend their money with.  While this semi-closed loop production process is certainly better than virgin plastic use in production processes, it isn\u2019t exactly closed loop production.  The ethical supply chain: Definition, examples, stats Consumers expect more from the brands they buy from, and an ethical supply chain is now a requirement. Learn what it means and how to get started. What is a closed-loop production supply chain model? Closed loop production processes are those that reuse material waste created during the production process for additional products, as well as use the recycled products to create new items. According to Green Matters: \u201cWhen a company says it uses a closed-loop system, it\u2019s referring to its supply chain. Under a closed-loop system, businesses reuse the same materials over and over again to create new products for purchase. It\u2019s a way to conserve natural resources and divert waste from the landfill, and increasingly, more companies are adopting it.\u201d This is important because there\u2019s so much extra material and textile waste that\u2019s historically just been thrown out. In the US alone, more than $500 billion of value is lost annually due to clothing under-utilization and the lack of recycling. Globally, less than one per cent of materials used to produce clothing is recycled into new clothing, representing a loss of more than $100 billion worth of materials each year. There is value here for both a business\u2019s bottom line and global sustainability. At our current pace, the fashion industry will use up more than 25% of the world\u2019s entire carbon budget by 2050. Give people what they want: A sustainable business model Consumers, investors, and partners are increasingly making decisions about your company based on a sustainable business model. Here, we examine the rise of sustainability as a business value. Leaders in closed-loop supply chain As semi-closed loop supply chain and production processes become more popular in the US, are there any brands currently taking a closed-loop supply chain approach? Absolutely.  Nike\u2019s Closed-Loop Supply Chain Nike flies pretty under the radar with their sustainability efforts, but they are one of the leaders in the industry. As of 2018, more than 75% of all Nike products contained some sort of recycled textiles, and Nike uses more recycled polyester in the industry than anyone else. Here are a few sustainability facts about their Air product alone: A dye-coloring process for Air soles allows 99% of recoverable dye water to be recycled All Air sole innovations designed since 2008 are composed of at least 50% recycled manufacturing waste. Today, Nike Air Manufacturing Innovation facilities divert more than 95% of manufacturing waste from landfills \u2014 that\u2019s 51 million pounds of materials (the equivalent of nearly 10 Olympic-size swimming pools) from May 2016 to 2017 alone. The new Nike Air Max 270 Air sole boasts one of the largest, tallest, and most visible cushioning systems to date and contains more than 70% recycled manufacturing waste. The VaporMax Air sole, which contains more than 75% recycled material, has allowed Nike to remove the need for a foam mid-sole. Nike has also launched the Nike Waste Minimum Program. The program sets expectations for management commitment, creates a hierarchy of waste where disposal is a last resort, details separation and handling waste for recycling and enables data collection and reporting for accountability. It outlines the elements necessary for factories to establish a strong foundation for waste management. This kind of full supply chain waste minimization effort is some of the most comprehensive in the world, and necessary for both larger and smaller organizations to begin doing right now to curb carbon emissions and reduce net new product production.  Sustainability in business: Key to brand survival, large and small alike Sustainability in business is critical for brand survival as consumers want brands who share their values. For small and midsize businesses - which have no margin for error - it\u2019s especially critical. For Days\u2019s Closed-Loop Supply Chain You don\u2019t have to be a giant organization to implement a closed-loop supply chain and business model. For Days is a fashion startup fighting against the concept of fast fashion with a closed loop business model. When customers sign up for a For Days subscription, they receive a bundle of shirts, ranging from basic tank tops to sweatshirts. Once the clothes are worn down, stained, or torn, subscribers send them back for a new set \u2014 derived directly from those used threads. \u201cRecover is our recycling partner \u2013 They are a mill based in Spain and North Carolina and have been working on recycling for 70 years,\u201d reads For Days\u2019s Your Impact page. \u201cThe process entails chopping up old clothing, turning it into a pulp, and then spinning new yarn. This process produces almost zero green house gas and requires no water. For Days then takes that yarn and turns it into new proprietary fabrics and products.\u201d Sustainability in fashion: Industry teeters on ethical catwalk Fashion is a $2.5 trillion industry, producing 10% of global carbon emissions, 20% of global wastewater, and vast biodiversity loss. Consumers are demanding change, forcing sustainability in fashion as a requirement, not a trend. Which materials are usually used? Any material can be used in closed loop recycling! Most of the material used now is recycled plastic or fabric. Both of these can cleaned, chopped up, and turned into fabric (polyester) or new yarn.  More and more brands are moving toward closed-loop supply chains and business models as an extension of their customer service. The Billie Upcycling Innovation, which won an award from The Global Wellness Summit in 2019, has been tracking this trend \u2013 and helping both consumers and brands understand the dire issue at hand: \u201cIn the US alone, clothing consumption has doubled to 14 million tonnes a year in under two decades. Unfortunately, this also means that billions of used clothing are thrown away each year to make room for the new ones. Often, our first thought of recycling clothing is to donate to charities and foundations. However, only about 0.1 per cent of recycled clothing collected by charities and take-back programmes is used to make new textile fibers.\u201d Zero waste. Zero emissions. Giants don\u2019t need a footprint to make their mark. Run sustainably with the best.   ","name":"Closed loop production: Sustainability across the supply chain","dateModified":"2021-11-17T18:12:48+00:00","datePublished":"2020-01-23T08:00:00+00:00","headline":"Closed loop production: Sustainability across the supply chain","description":"Closed-loop production systems drive sustainability across the entire supply chain, eliminating waste and clearing a path for a circular economy."}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2020","item":"https:\/\/www.the-future-of-commerce.com\/2020\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"23","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/01\/\/23\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Closed loop production: Sustainability across the supply chain","item":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/23\/closed-loop-production\/#breadcrumbitem"}]}]