• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Quality Issues Present Challenge, May Lead to New Thinking on Outsourcing

Quality Issues Present Challenge, May Lead to New Thinking on Outsourcing

November 27, 2007
AMR Research

China may still be attracting new business but, as recent headlines demonstrate, the offshore migration is not without its problems. Quality issues have U.S. and European consumers on alert and are forcing the Chinese government to begin addressing corruption issues that have impacted manufacturing quality. And whether it is lead-tainted toys made in China or foods tainted with E. coli grown in the United States, quality failures can break a company, says a weekly Alert from AMR Research, Boston.
Reassuring a wary public in the aftermath of such a failure is a massive undertaking that requires every member of the value chain. AMR analysts recently gathered to discuss how businesses are being affected and to talk about ways in which companies can deal with the problem. They identified a number of best practices in each area to assure quality control or efficient recalls. Each step will be detailed in a coming report, but here is a preview:
• Despite all the technology to manage global collaboration, some companies are finding that nothing beats an actual physical presence to assure quality in and quality out.
• Top high-tech manufacturers and retailers, including Apple, IBM, AMD, Cisco, Best Buy, Dell, HP, and Kodak, among others, banded together to form a oversight group called the Electronic Industry Code of Conduct (EICC) to assure quality and compliant products from overseas manufacturers.
• If quality does become an issue, retailers need standard policies and procedures in place for recall and reverse logistics, and employees need to be trained on how to deal with it. Since most products for the 2007 holidays are already on their way to or in the warehouse, it may be too late for this year. But retailers do need to plan for next holiday season, not to mention for all the time in between.
• Retailers should join consortium groups to help ensure the products it buys meet environmental, social, and compliance standards. As more retailers launch private-label products, instituting all of these practices becomes even more vital.
• Despite recent recalls, the food industry is better equipped than most to deal with quality issues, because it has long had to contend with regulations requiring thorough food labeling. Other industries can take a page out of their playbook and adopt some of the food industry's best practices in these areas. Ditto the pharmaceutical industry, which has stringent regulations to assure only quality medications and medical devices make it the patient. The recall of a child's toy should be as rare as the recall of a heart stent.
• Turning to other low-cost sourcing options, India is seeing a surge of outsourced manufacturing as quality and corruption issues hamper operations in China. China is about where the United States was 150 years ago in terms of government oversight for environmental health and safety. It will be many years before China will have the rules and bureaucracy in place to put manufacturers at ease. In the meantime, they'll need to take on the expense of self-governing or turn to other regions, like India. Some perceive India to be a more controlled environment, and so able to produce safer products. Call it "different-shoring." Brazil and Mexico may also be options for nearshore alternatives. Some are also bringing it home. That Made in the USA label may mean something again to shoppers if quality problems continue to plague products made overseas.
http://www.amrresearch.com

    RELATED CONTENT

    RELATED VIDEOS

    Global Logistics Global Supply Chain Management Quality & Metrics Supply Chain Security & Risk Mgmt Retail
    KEYWORDS China Global Logistics Global Supply Chain Management Quality & Metrics Retail SC Security & Risk Mgmt
    • Related Articles

      Changing Climate May Lead to Food Shortages, UN Report Warns

      Ethnographic Studies Lead to New-Product Successes

      Wait, Those Metrics May Lead You Astray

    • Related Directories

      Tecsys, Inc.

    AMR Research

    Supply Chain Exective Conference

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • A man in a business suit with a shoulder bag walking inside a depiction of the inside of a computer

      Why AI Agents Fail to Deliver Supply Chain Results

      Artificial Intelligence
    • A TRUCK WITH ITS CONTAINER DOOR OPEN SITS UNDER A SIGN THAT READS INTERNATIONAL BORDER COMMERCIAL TRUCKS

      Importers Into Mexico Can No Longer Delay Complying With New Customs Declaration Law

      Data Management (Big Data/IoT/Blockchain)
    • A red semi-truck towing a red container in front of a stack of multi-colored shipping containers

      Supreme Court Ruling Reshapes Risk for Freight Brokers

      Logistics
    • An overhead view of a shipping port stacked with containers, with stylized lines forming a grid connecting ships and berths

      How Supply Chains Can Survive the Next Unexpected Demand Surge

      Data Management (Big Data/IoT/Blockchain)
    • 018_how_3pls_can_get_started_with_ai_v1-(540p).png

      Watch: How 3PLs Can Get Started With Automation

      Logistics Outsourcing

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open General Logistics Systems
    Hy-Tek iGPS Korber
    Lyngsoe Procurability Quinyx
    SAP Sikick Systech
    S&P Global Mobility TADA TransImpact
    US Bank Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing