It seemed like every week this summer there was a new product recall due to some toxin getting into toys or toothpaste made in China. Such high profile embarrassments surely made manufacturers more careful about their outsourcing, right? As much as you'd think businesses would be rushing to ensure the safety of their products manufactured in China, a new study out today from professional services firm, the Smart Cube, reveals that actually most have done nothing.
Less than 25 percent of manufacturers the Smart Cube surveyed had reviewed their supply chain management practices. An even smaller percentage, one in five, said they were considering changes to their quality control process. Which might not be good for families trying to avoid giving their children lead tainted toys, but is certainly happy news for Chinese business. Omer Abdullah, Managing Director of the Smart Cube, commented on the results:
"Despite the extensive publicity involving lead-tainted products from Chinese facilities, survey findings indicated that manufacturers still perceive China as the preferred destination for outsourcing manufacturing... most manufacturers regard the recalls as being isolated supplier-specific incidents and not part of a systemic wide problem or trend. China's position as an attractive location for inexpensive labor and raw materials hasn't been diminished and manufacturers don't believe that relocating to other developing countries would guarantee immunity from similar supply chain breakdowns."Less than 20% of manufacturers surveyed though more stringent processed should be put in place to screen vendors, and a measly 12% thought it was necessary to have an on-site presence to ensure quality. Well, that's reassuring.