Supply Chain Managers Take “World View” on Risk

AsiaInspection, a global provider of quality control services for businesses importing from Asia, Africa, Southern Europe, and Latin America, maintains that supply chain managers should pay more attention to risk irrespective of region.

The Hong Kong-based consultancy has just released its 2014 Q2 Barometer, a quarterly synopsis on outsourced manufacturing and quality control indicating that supply chain transparency is far from adequate nearly everywhere in the emerging markets matrix.

“Major differentiating factors between emerging nations can be the reliability of the infrastructure, safety, and political stability, which can result in unpredictable delays and factory shut downs,” says Sebastien Breteau, founder and CEO of AsiaInspection.

“In India, certain provinces provide subsidies to select industries, so knowing where these are located can get you a better deal,” says Breteau. “When sourcing in Vietnam, be aware that there can be a big difference in quality between samples and actual production.”

AsiaInspection advises supply chain managers to tie the final payment to an inspection certificate, ensuring that the actual manufactured goods match the agreed upon samples. For example, many Vietnamese factories do not sell direct, but through a trading company with whom they may not have long-term commitments.

“Make sure you know if you’re dealing with the factory or a trading company,” adds Breteau. “In parts of Mexico, particularly those likely to host the cheapest factories, it can be especially dangerous. Furthermore, the level of English can be quite poor, even among the managerial staff.”

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