AsiaFoodInspection Q4 Barometer: The Year of Social Accountability in the Supply Chain?

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AsiaFoodInspection presents the AI 2013 Q4 Barometer, offering a year in review of outsourced manufacturing and the quality control services industry.

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AsiaFoodInspection Q4 Barometer: The Year of Social Accountability in the Supply Chain?

  1. 1. The Year of Social Accountability in the Supply Chain?
  2. 2. SOCIAL ISSUES PLAGUE GLOBAL SUPPLY CHAINS ASIAFOODINSPECTION PRESENTS THE AI 2013 Q4 BAROMETER A year in review of outsourced manufacturing and the quality control services industry. AsiaFoodInspection, AsiaInspection, AA leading food safety service provider leading quality control service provider that partners with international Brands, Retailers and Importers that partners with international Brands, Retailers and Importers to secure and manage their global supply chain. to secure and manage their global supply chain.
  3. 3. A SIA MAN UFACTUR ING LI FE AFTER RANA PLA ZA 2013 was a challenging year for brands and retailers worldwide in the face of supply chain social issues for brands and retailers worldwide in the face of supply chain social issues Most notably the Rana Plaza tragedy in May, where a factory collapse in Bangladesh took the lives of 1,129 people 1,129 people
  4. 4. TRAP PED WORKERS IN JIL IN FACTORY FIRE The official media reported the fire had been ignited The official media reported the fire had been ignited by series of explosions at Baoyuanfeng Poultry by series of explosions at Baoyuanfeng Poultry when around 300 to 350 workers were on the site. EXIT 100 people escaped 119 people killed 54 workers injured Almost all the doors of the workshops were locked on the outside, and only a narrow side exit had been left open, which made escaping difficult.
  5. 5. Throughout the year in factories across India, Bangladesh, Cambodia and Myanmar: Strikes Riots Workers Demanding Higher Wages The minimum wage in Bangladesh is half China The minimum wage in Bangladesh is half China and Cambodia is $80 per month. and Cambodia is $80 per month.
  6. 6. Child labor back in the spotlight Child labor back in the spotlight 78 Million Children Engaged in Child Labor in the Asia and Pacific Region* * US Department of Labor. October 2013
  7. 7. Figures for AsiaInspection reflect brands and retailers are taking action +61% Audits increase +61% Audits increase in Asia for 2013 compared with 2012 While Bangladesh was in the spotlight, buyers took to securing their supply chain in all sourcing regions, year over year +47% Audits +47% Audits in Bangladesh +112% Audits +112% Audits in India +58% Audits +58% Audits in China
  8. 8. As a result of the tragic incidents in Bangladesh news emerged of buyers starting to look for alternatives in the region. AsiaInspection ordered inspection figures further support this. +36% +44% Inspections in Bangladesh Inspections in India +71% Inspections in Vietnam +114% Largest exporter for apparel in volume after China Inspections in Cambodia
  9. 9. SOUR CING POWER: NA VS. REST OF THE WORLD CHINA VS. REST OF THE Despite fears that China’s competitiveness would be eroded by the appreciation of the RMB and wage inflation, China’s exports continue to set new highs. 12.7% November was up compared with a year earlier 9.3% 2013 showed an increase for the period of January to November compared to 2012 This puts China on track to report This puts China on track to report the largest annual trade surplus since 2008
  10. 10. AsiaInspection inspection figures mirror this with a +17% increase in ordered inspections in China in 2013 compared with 2012. Bangladesh exports amounted Bangladesh exports amounted to a mere 1% to that of China. to a mere 1% to that of China. In 2013, China remained by far In 2013, China remained by far the largest sourcing region the largest sourcing region used by AI clients. used by AI clients. CHINA BANGLADESH BANGLADESH AsiaInspection n spectio AsiaIn AsiaInspe ction
  11. 11. 2013 confirmed the trend for new sourcing regions with Africa seeing a 47% increase the second half of the year Vietnam was up by 71% increase ection AsiaInsp on AsiaInspecti AsiaInspection tion AsiaFoodInspec Cambodia doubled despite protests over wage concerns
  12. 12. CT W HAT TO E XPECING UR IN 2014 GLOBAL SOURCING obvious from the tragic events in 2013 “ It’sthat transparencycurrent statistics andare in great need. and accountability Western buyers do not actually know what’s going on in their factories Western buyers do not actually know what’s going on in their factories as was demonstrated when H&M published their entire supplier list. Sebastien Breteau, CEO of AsiaFoodInspection on ction pe AsiaFoodInspection AsiaInspe cti AsiaIns “ “ 2014 will be a year of transparency
  13. 13. FOOD SCANDALS CONTINUE TO ROCK CHINA SUPPLY CHAIN China continues to be a breeding ground for food scandals led by the combination of food suppliers eager to cut costs extremely limited government oversight
  14. 14. The increasing number of prosecutions hasn’t worked as a deterrent with new scandals continuing to arise on an almost monthly basis. Wal-Mart China’s own CEO, Greg Foran, recently had to issue a public apology for their stores selling “other animal” meat, including fox meat, to consumers. up 53% AFI food inspections up 53% AFI food inspections in 2013 compared with 2012, amidst the fear and increased sourcing from Asia
  15. 15. ABOUT ASIAFOODINSPECTION ™ YOUR EYES IN THE FACTORY ™ Dedicated Account Manager A supply chain partner offering advice on your specific needs Industry Leading Turnaround Onsite within 48 hours. Reports the same day 80% of the time Comprehensive Online Management Use your real-time dashboard to benchmark and identify your high performing suppliers Flexible Cancel or modify orders up to 4pm the day before the inspection for free Silliker Expertise International network of accredited food testing & consulting labs: 70 locations in 18 countries. Trusted and Truly Independent 100% QC. AI is not involved in sourcing and protects your factory information Mobile Book, check reports and make decisions on the go All-Inclusive Pricing Easy to budget. No hidden costs
  16. 16. Twitter.com/asiafoodinspect Facebook.com/AsiaFoodInspection Linkedin.com/company/AsiaFoodInspection

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