How to Adapt Your Quality Control Program During COVID-19 Sponsored by July 9, 2020
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SPEAKER Dory Lanenter Senior Quality Control Manager QIMA
How to Adapt Your Quality Control Program During COVID-19 July 9, 2020 Dory Lanenter Senior Quality Control Manager, QIMA
Outline Where we stand: Impact of COVID-19 so far The potential new normal Challenges in moving beyond “survival mode” Risk Analysis and Risk-Informed Planning Audits, Testing, Inspections for the New Normal Focus on Factory Safety and 3 rd Party Tools info@qima.com 7
Where We Stand: The Impact, the New Normal, the Challenges info@qima.com 8
COVID-19 and Global Apparel Supply Chains: Navigating the Perfect Storm Apparel/Fashion hit by a “perfect storm” with every part of the supply chain affected: Production: lockdowns and layoffs in manufacturing countries Demand: plummeting in buyer markets (“no-one wants to buy new clothes to sit at home”) (apparel inspections globally -20% YoY in H1 2020 - QIMA data) Retail: physical stores shuttered (“non-essential”) info@qima.com 9
The move out of China, continued and accelerated: Alternatives in Asia, pre-COVID: even before COVID-19, apparel brands had been pivoting from China to Vietnam, Myanmar, Cambodia, Bangladesh and India Alternatives in Asia, 2020: with start of lockdowns China, alternative regions reaped benefits until own lockdowns set in (March 2020: Vietnam +27% YoY, Cambodia +40% YoY, Bangladesh +79% YoY – QIMA data, US brands’ demand on apparel inspections) Near-shoring: Latin and South America emerging as key near-shoring sourcing markets for US brands (apparel inspection demand +38% YoY in H1 2020 - QIMA data) info@qima.com 10
Second Half of 2020: A New Normal Emerging? DEMAND / BUYERS: Continued fluctuations: shifts due to reintroduced lockdowns/distancing will continue until the virus is under control (e.g. vaccine or cure) New consumer behaviors: focus on online shopping: Ecommerce sales +25% since the start of pandemic Online apparel sales +14% 42% will shop online more even after lockdown info@qima.com 11
SUPPLY / MANUFACTURERS: A shift to PPE: Apparel capacities converted to PPE on large scale (China, Vietnam, Bangladesh, Cambodia, Myanmar, etc.) PPE for domestic use and export 1.2 billion inspected face masks to date (QIMA data) Concern for factory survival: Forced layoff and factory closures, potentially permanent RMG jobs lost or at risk: Bangladesh – up to 2 million Cambodia – up to 500,000 info@qima.com 12
Moving Beyond “Survival Mode”: New and Emerging Challenges Health & Safety Bad news: many reopening factories struggle to enforce social distancing Good news: increase in Sanitation Audits Disaster recovery Is there a plan in place? Quality control Quality programs reduced as budgets limited Fewer inspections, manufacturing audits Sustainability: During times of upheaval, sustainability tends to fall lower on the agenda info@qima.com 13
Ethical compliance Additional challenges linked to worker rights, working conditions, wage payments, etc. New risk of exploitation due to additional sanitation/hygiene duties Logistics hurdles Ensure worker safety and avoid compromising products How to provide access to factories when required Need for new expertise (PPE) Current PPE boom exposing quality issues Experts in PPE required urgently: on inspection, testing, QA management, etc. info@qima.com 14
Risk Analysis and Risk-Informed Planning info@qima.com 15
Risk Analysis -> Risk Informed New Plan How is budget affected? Which products are less in need? What do peers do? Which factories can pivot into PPE or new production plan How are my resources look based on the new plan? info@qima.com 16
Risk Informed New Plan – How to Pivot Allocation of resources based on new reality Working in hand with the factories Review weekly info@qima.com 17
Audits, Testing and Inspections for the New Normal info@qima.com 18
Factory Audit Programs for the New Normal Ethical compliance – highest priority High risk analysis Extensions for existing suppliers New suppliers New factories Self assessment option for low risk factories Focus on Sanitation info@qima.com 19
Testing Programs for the New Normal Allocation of resources based on new reality Allowing factories to send samples to lab vs. client pick up PPE info@qima.com 20
Inspection Programs for the New Normal Resources invested in high risk / expensive products / 1 st time production Focus the program on PPE equipment Create new check lists info@qima.com 21
Focus on Factory Safety and 3rd Party Tools info@qima.com 22
Factory Safety Practices Worker training: Social distancing: Establish clear owner for training Staggered shifts procedure (officer or committee) Zoning Ensure training across the board Hygiene and Sanitation Monitor adherence Work areas, equipment, etc. fully Ensuring safe return to work: disinfected after every shift Clear procedure for return to work Dedicated cleaning team or outsourced Closely monitor adherence Examples of measures: temperature screening, ensuring adequate PPE, zoning and social distancing, etc. info@qima.com 23
3 rd Party Tools Sanitation Audit s Remote Guided Inspections and Audits Remote Sample Approvals Factory Worker Surveys Safe Place Labels info@qima.com 24
Email: info@qima.com Visit: www.qima.com
QUESTIONS Please type your questions into the question box on the control panel of your screen. Dory Lanenter Senior Quality Control Manager QIMA
www.aafaglobal.org/COVID19
Thank you for participating. Please visit AAFA’s Learning Center To view other webinar recordings. www.aafaglobal.org | @apparelfootwear
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