Product quality remains a challenge, as seen from failed inspections and recalls in 2016, while the ethical state of supply chains has improved structural safety and environmental compliance remain a work in progress.

1. 2016 IN REVIEW: WORRYING TRENDS
FOR QUALITY AND COMPLIANCE ACROSS
GLOBAL SUPPLY CHAINS
ASIAINSPECTION Q1 BAROMETER

2. HONG KONG, JANUARY 5, 2017
ASIAINSPECTION (AI)
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER
THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN
today announces its 2017 Q1 Barometer, a quarterly synopsis
on outsourced manufacturing and the quality control services industry.

3. SOURCING GEOGRAPHIES: CHINA
REBOUNDS, SOUTH ASIA SURGES
+18.2%PAKISTAN
+12.5%CHINA
+11.7%BANGLADESH
+5.0% VIETNAM
YEAROVERYEARGROWTH

4. SUPPLY CHAIN SUSTAINABILITY:
STRUCTURAL SAFETY STILL A MAJOR ISSUE
63% of audited factories found in need of remediation
Critical issues found in 3% factories
Number of compliant factories dropped from 41% to 37% YoY
63%in need of
remediation

5. PROGRESS SLOW IN ETHICAL COMPLIANCE
Less than a third of factories found compliant
27% of factories had critical non-compliances
Top concerns in ethical compliance
Forced labor
and child labor
Sexual
harassment
Exploitation
of refugees

6. ENVIRONMENTAL COMPLIANCE
STILL A STRUGGLE
36% of environmental audits failed in 2016, compared to 31% in 2015
Many brands find ISO 14001 commitment challenging and struggle even
with much lower statutory minimum requirements
36%failed in 2016

7. MORE BRANDS SEEK TO EDUCATE
SUPPLIERS AND IMPROVE AWARENESS
AI has seen strong demand for workshops and trainings in 2016
Structural safety and environmental compliance education
in most demand

8. PRODUCT MANUFACTURING QUALITY:
WORRYING RESULTS OVERALL
Consumer goods quality worldwide has deteriorated in 2016
AI data shows a 2.9% increase in product inspection failure rates
in 2016 vs. 2015
+2.9%2016 vs. 2015

9. CONTRASTED QUALITY TRENDS THROUGHOUT ASIA
Vietnam shows a
small improvement,
driving Beyond AQL
rates down to 29%
Product quality in
China remains stable,
with failed inspections
around 32.4%
India, Bangladesh,
Pakistan show
double-digit growth
in inspection
failure rates

10. PRODUCT QUALITY: INDUSTRY BREAKDOWN
Textiles most prone to
quality problems: 41.6%
products beyond AQL
Toys & Juvenile Products
quality slightly improved
by 3 points, to 30.3% of
rejected inspections

11. LAB TESTS SHOW IMPROVEMENT
IN PRODUCT SAFETY
Failure rates for lab tests at 3.3% in 2016,
improvement by +11.4% compared to 2015
3.3%failed in 2016

12. SPECIFIC TEST RESULTS
REMAIN MORE DISPARATE
REACH-related tests: failure rates tripled YoY
Phthalate tests: 5.4% products fail safety requirements
x3
REACH FAILURE RATE
5.4%
FAIL PHTHALATE
TESTS

13. AsiaInspection (AI), a leading global quality control
and compliance service provider
that partners with Brands, Retailers and Importers around the world
to secure, manage and optimize their supply chain.
ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™

14. ABOUT ASIAINSPECTION
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
PRODUCT EXPERTISE
Hundreds of off-the-shelf customizable
product specific checklists
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