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Rogelio Vazquez Sr. Business Development Mgr. The Challenges of Importing Textiles and Apparel August 20, 2020

The Challenges of Importing Textiles and Apparel Rogelio

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Page 1: The Challenges of Importing Textiles and Apparel Rogelio

Rogelio Vazquez Sr. Business Development Mgr.

The Challenges of Importing Textiles and ApparelAugust 20, 2020

Page 2: The Challenges of Importing Textiles and Apparel Rogelio

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What are the Challenges of the Textile Industry Supply Chain?

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Page 3: The Challenges of Importing Textiles and Apparel Rogelio

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Most

common defects

found

Textile Industry ChallengesQuality Issues

18%of inspections beyond AQL (workmanship)

Source: QIMA data

Incorrect sewing

6%

Uncut thread

9%

Stains/Dirt Marks

2%

Pukering

1%

Incorrect labels

0.7%

Holes

0.9%

20%of inspections beyond AQL (measurement)

Page 4: The Challenges of Importing Textiles and Apparel Rogelio

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Why?Limited supply chain visibility

Poor factory quality control

Lack of management knowledge and training

Reliance on manual processes (human error)

Textile Industry ChallengesQuality Issues

Source: QIMA data

18%of inspections beyond AQL (workmanship)

20%of inspections beyond AQL (measurement)

Page 5: The Challenges of Importing Textiles and Apparel Rogelio

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The risk of mold and bug infestations

can lead to total product loss

Textile Industry Challenges

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Page 6: The Challenges of Importing Textiles and Apparel Rogelio

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Textile Industry ChallengesMold

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Impact on the product

Bad smell

Poor look

Weaken the material and stitching

Metal stains

Factors

Average monthly temperature over 82ºF

Relative humidity higher than 65%

Page 7: The Challenges of Importing Textiles and Apparel Rogelio

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Textile Industry ChallengesMold

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Did you know?

90% of the world’s apparel is produced in South and Southeast Asia

It’s also the region with the highest annual rainfall globally, with an average 2000-3000mm (78-118 inches)

Page 8: The Challenges of Importing Textiles and Apparel Rogelio

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Textile Industry ChallengesBug Infestation

Factors

Hygienic factory conditions

Temperature and humidity

Product packaging and storage

Shipping conditions

Page 9: The Challenges of Importing Textiles and Apparel Rogelio

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Diversification

Drivers

US tariffs towards China

COVID-19

Challenges

Insufficient providers

Lesser production capacity

Lack of product expertise

Risks

Low quality

High production demand

Increase in delivery times

Page 10: The Challenges of Importing Textiles and Apparel Rogelio

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What can I do?

Where should I start?

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Page 11: The Challenges of Importing Textiles and Apparel Rogelio

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Quality Assurance vs Quality Control

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Quality Assurance

Focus on production process

Proactive measure

Defects prevention

Quality control

Focus on the product

Reactive measure

Defect identification

Page 12: The Challenges of Importing Textiles and Apparel Rogelio

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Quality Control

1212

Initial Production Check

During Production Inspection

Pre-Shipment Inspection

Container Loading Check

Production Monitoring

Textile composition

Chemistry tests

Performance tests

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Page 13: The Challenges of Importing Textiles and Apparel Rogelio

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Quality ControlPurchase Order

+ =

Page 14: The Challenges of Importing Textiles and Apparel Rogelio

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Quality ControlMonthly Production

Purchase Order

Supplier A

Purchase Order

Supplier B

Purchase Order

Supplier C

Page 15: The Challenges of Importing Textiles and Apparel Rogelio

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Quality ControlYearly Production

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Independent Decisions

Isolated information

Lack of historical data

Poor visibility on defect trends

Limited supplier performance tracking

High quality control cost

Page 16: The Challenges of Importing Textiles and Apparel Rogelio

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Importance of Technology in the Supply Chain

Spot common defects

Identify trends

Filter data by factory, brand or product

Supplier performance ranking

Optimize and better allocate your quality control budget

Factory Mapping

Identify unauthorized subcontracting

Geographic visibility of the supply chain

Defects Information

Page 17: The Challenges of Importing Textiles and Apparel Rogelio

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Quality Assurance | Audit

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Factory Audits

Manufacturing Audit

Ethical or Social Audit

Environmental Audit

Structural Audit

Technical Audit

C-TPAT

Factory Improvement Programs

Initial evaluation

Corrective Action Plan (CAP)

Follow up audits

Continuous Improvement Plan

Page 18: The Challenges of Importing Textiles and Apparel Rogelio

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Quality Assurance | Upstream Control

Visibility and Control:

Trace raw material performance from origin to final product

Identify the “weak points” in your supply chain

Defects Prevention:

Get it Right-First Time, reducing waste, rework and costs

Identify and correct mistakes on initial stages of the production

Drive Continuous Improvements:

Optimize the factory quality management systems

Use data to increase process efficiency

20% of defects found in garments are related to Fabric manufacturing issues and could be avoided

Page 19: The Challenges of Importing Textiles and Apparel Rogelio

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Quality Assurance | Continuous Improvement

1919

IDENTIFY Root Causes

IMPLEMENT Corrective Actions

TRAIN Factory Staff

Intervention Impact

Reduce defects

More efficient processes

Improved traceability

Supplier cooperation

CONTINUOUS IMPROVEMENT

CONTINUOUS IMPROVEMENT

REVIEW AND ADJUST

Data Collection & Action Plan

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Page 20: The Challenges of Importing Textiles and Apparel Rogelio

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Success Case Study – Quality Assurance

Initial Audits

13

Factories

13Audits

Assessment

4.7/10

Average Score

Production Improvement Program

Factory A (2 audits)

6.2/10

Jan ‘19

8.4/10

May ‘19

Factory B (3 audits)

4.5/10

Mar ‘18

6.0/10

Jan ‘19

8.1/10

May ‘19

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Page 21: The Challenges of Importing Textiles and Apparel Rogelio

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Success Case Study – Quality Assurance

Defects classification procedures

Implementation of best practices

Factory staff training

Page 22: The Challenges of Importing Textiles and Apparel Rogelio

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In Conclusion…

Accurate Data in Real-Time

Supply Chain Visibility

Better Quality Administration

Increase in Business

Efficiency

Informed Decisions

Page 23: The Challenges of Importing Textiles and Apparel Rogelio

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QIMA can Help!

+Quality Control Quality Assurance

Page 24: The Challenges of Importing Textiles and Apparel Rogelio

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Our Team of 2,500+ Qualified Inspectors, Auditors and Lab Engineers Perform Services in 85 Countries

In 2020, we will

deliver more than 400,000inspection, audit, testing

and certification reports for brands, retailers and

importers globally.

Page 25: The Challenges of Importing Textiles and Apparel Rogelio

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QIMA Supply Chain Insights Page

Find our latest quarterly barometer

See the results of our yearly global sourcing survey

Download white papers and quick guides which offer insights not quality control issues globally based on our research and analysis

Visit: https://www.qima.com/supply-chain-insights

Page 26: The Challenges of Importing Textiles and Apparel Rogelio

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Remote Guided Inspections

Leveraging QIMA’s extensive inspection experience, with a team of specialist supervisors who are experienced in managing inspectors

Utilizing livestreaming technology, a QIMA supervisor remotely guides factory staff through the inspection and collects evidence of the product’s quality

Booking, checklist and overall process is the same as with a QIMA Onsite Inspection.

A detailed inspection report is provided within the same day and real-time analytics are available in your QIMA dashboard

Page 27: The Challenges of Importing Textiles and Apparel Rogelio

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PPE InspectionsApparel capacities converted to PPE on large scale (China, Vietnam, Bangladesh, Cambodia, Myanmar, etc.)

PPE for domestic use and import

QIMA has inspected over 1.2 billion face masks to date

Page 28: The Challenges of Importing Textiles and Apparel Rogelio

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Q&A

Page 29: The Challenges of Importing Textiles and Apparel Rogelio

Email: [email protected]

Visit: www.qima.com