BSI Supply Chain Solutions, an Associate Member of USFIA, has provided several new supply chain risk alerts via BSI’s Supply Chain Risk Exposure Evaluation Network (SCREEN), a web-based, comprehensive global supply chain intelligence system.
Paraguayan Authorities Seize $380,000 Worth of Knockoff Clothes (May 17)
Paraguayan customs officials seized 13,000 individual pieces of counterfeit clothing totaling $380,000. Officers seized the fake apparel after stopping the truck during a customs inspection at an Asuncion port. Authorities did not indicate where the shipment of fake apparel was produced. However, a large amount of counterfeit products seized in Paraguay were produced in China, which suffers from a Severe threat of counterfeit production and exportation.
Industry Group Reporting Heightened Risk of Apparel Theft in Mexico (May 2)
According to a major apparel and textile industry group in Mexico, thefts involving clothing and textiles has doubled in the last six months. The industry group indicated that apparel and textiles are facing particularly high risk of theft in the Federal District and states of Mexico, Guanajuato, Queretaro, San Luis Potosi, and Veracruz. In the last six months of 2015, thieves specifically targeted materials including threads, synthetic fabrics, and cotton as well as towels, baby clothes, and sweaters, among other apparel, for theft. The industry group also indicated that the rise in apparel and textile thefts could be higher, as companies may not report the loss. Companies shipping apparel and textiles are reportedly outfitting cargo trucks with tracking devices in order to mitigate the risk of theft.
New Report Highlights the Lack of Supply Chain Transparency Among World’s Largest Fashion Brands (April 26)
According to a new report, most major international fashion brands rank poorly for supply chain transparency. Only two of the 40 companies covered in the report publish information on their second-tier suppliers, and the majority of the businesses surveyed lack systems to effectively monitor where source materials originate. The report also reveals that there is a general lack of engagement between companies and trade unions, civil society, or NGOs in supplier countries to improve working conditions and 40 percent of the companies do not have a system in place to monitor labor standards compliance. Similarly, 38 percent of the surveyed companies do not include labor standards in the sourcing process.
Mapping a supply chain to second- and third-tier suppliers is a key step in mitigating the risk of using suppliers with poor working conditions or employing child or forced labor. Many of the major supplier countries for the apparel and footwear industry, including China, Bangladesh, and Vietnam, rank High or Severe for both the risk to working conditions and the threat of child labor. This makes it highly possible that an apparel and footwear company could be unknowingly sourcing from a firm guilty of these labor violations.
More Information on BSI & SCREEN
BSI Supply Chain Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain. For more information, visit www.bsi-supplychainsolutions.com.
Supply Chain Risk Exposure Evaluation Network (SCREEN), is BSI’s web-based, comprehensive global supply chain intelligence system. SCREEN is the most complete, publically available Supply Chain Security, Corporate Social Responsibility, and Business Continuity intelligence and analysis resource used to measure country level risk factors through BSI’s 20+ proprietary country level supply chain risk ratings. SCREEN is used globally by importers, manufacturers, associations and governments to quantify the risk of supply chain incidents in over 200 countries. For more information, visit http://bsi-supplychainsolutions.com/en-US/solutions-services/SCREEN/.