Innovation in emerging markets is an annual study from Deloitte’s Global Manufacturing Industry Group. This year it concentrates on product safety, product quality and environmental standards in emerging markets. Last year saw a number of high-profile product recalls. From contaminated dog food to children’s charm bracelets and necklaces decorated with paint containing high levels of lead. All of these recalls had one thing in common; they were all sourced from emerging markets. On top of this a rising concern for the environment among consumers, has resulted in global manufacturers are paying more attention to the potential environmental impact of their production processes.
More than 650 executives from developed markets and across various manufacturing sectors were involved in the survey. Around three-quarters reported an increased use of suppliers in emerging markets in the last three years, with almost half saying their use had increased significantly. The report examines how these companies are responding to growing concerns around product safety. It concludes that global manufacturers sourcing from emerging markets will require better vendor selection, testing, monitoring and contract provisions. More stringent standards will mean higher operating costs but providing products with a guarantee that they meet strict standards should present manufacturers with an opportunity to turn this challenge into a competitive advantage
The report can be downloaded from the Deloitte’s website
Picture from Creative Commons: Flickr: thirtyfootscrew
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