Supply Chain Visibility Trends: Recent Updates
Latest Update & Forecast
Oct 15, 2024
Challenges in the Textile and Apparel Sector
Bangladesh’s garment sector, a global leader in textile and apparel production, has faced significant disruptions throughout 2024. Labor unrest, political upheaval, and the closure of factories have caused brands to diversify their sourcing away from the country.
Key Developments:
Minimal Growth in Inspection Demand: QIMA data shows only a modest 3% year-over-year (YoY) growth in demand for textile and apparel inspections in Bangladesh during Q3 2024, reflecting the uncertainty in the sector.
Rising Compliance Issues: Compliance audits revealed that 37% of factories in Bangladesh reported critical violations related to working hours and wages, more than double the rate seen in 2023. This highlights ongoing visibility issues in worker treatment and factory conditions.
Hope on the Horizon: A breakthrough in labor talks in late September 2024 has brought optimism for the sector. An agreement between garment industry representatives and worker unions, focused on increasing compensation and worker protections, promises to stabilize the industry and improve supply chain transparency moving forward.
Global Impact:
The situation in Bangladesh underscores the importance of maintaining supply chain visibility, particularly in high-risk regions. While progress is being made, brands must remain vigilant in tracking ethical and operational compliance across their supplier networks.
Read the full report: Q4 2024 Barometer
Stay up to date with all the latest supply chain trends with our Supply Chain Insights.
About Supply Chain Visibility Trends
At QIMA, we closely monitor supply chain visibility trends with our regular surveys of over 800 businesses worldwide and a robust data pool from audits and inspections of over 30,000 clients. Our longstanding industry presence in over 100 countries has honed our understanding of the global supply chain landscape, enabling us to deliver precise insights rooted in real-world dynamics.
Previous Updates
Q3 2024
Update: Jul 15, 2024
Supply Chain Visibility remains a crucial focus for global businesses, reflecting efforts to ensure transparency and ethical compliance throughout their supply chains. Key developments in this area include:
Increased Ethical Compliance in China:
The EU Corporate Sustainability Due Diligence Directive adoption in May 2024 has elevated compliance standards.
A significant improvement in factory ethical compliance in China, with 59% of factories audited in H1 2024 receiving a “green” ranking, a five-year high.
Despite progress, persistent issues such as child labor and worker safety violations remain, with 6% of ethical audits identifying critical violations related to child and young labor, and 15% revealing critical Health & Safety violations (H1 2024).
Rising Demand for Ethical Audits:
A notable increase in demand for ethical audits, especially among Chinese businesses (+62% in H1 2024), indicating a heightened focus on transparency and ethical practices.
Ongoing ESG Challenges:
Global supply chains continue to face significant ESG challenges, necessitating continued vigilance and corrective actions to address issues like worker safety and child labor.
Critical violations from audits by category
Read the full report: Q3 2024 Barometer
Q2 2024
Supply chain visibility is low across the board, with a mere 16% of global businesses fully aware of all their suppliers.
QIMA data indicates that only 52% of global businesses can name more than half of their sourcing network.
This lack of visibility is one reason behind a recent rise in the frequency of ethical violations, as observed by QIMA auditors in Southeast Asian factories.
Businesses that prioritize transparency mitigate risks, achieve ESG goals, strengthen trust, and gain a competitive edge by setting higher standards for oversight than their peers.
Supply chain visibility reported by businesses – by HQ location
Read the full report: Q2 2024 Barometer
Q3 2023
In 2023, more than ever before, companies are naming supply chain visibility as a top reason to invest in digitization.
45% of respondents report implementing technological tools designed to improve supply chain visibility.
Traceability solutions are among the top three most popular supply chain technologies.
Cloud-based software is the most popular technology companies are implementing, with over half of respondents noting they have already implemented or are planning to implement the tool.
Survey of over 250 businesses: “Which of the following technologies has your company already implemented / is planning to implement in your supply chain?”
Read the full report: Q3 2023 Barometer
How QIMA Can Help
QIMA's supply chain visibility services help you to gain control and assurance over your supply chain. Through supply chain mapping and comprehensive self-assessment questionnaires (SAQs), we enable you to collect vital data across all tiers of your supply network. This proactive approach allows for tailored mitigation plans to address potential vulnerabilities, ensuring transparency, traceability, and progress toward ESG goals.
Contact us today to find out how our solutions can elevate your supply chain visibility.
Or, read our whitepaper to learn about what’s involved in mandatory due diligence, and how to achieve visibility for success: Mandatory Human Rights & Environmental Due Diligence: How to Get Prepared
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