Middle East firms increase supply chain audits

22 October 2013

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Businesses in the Middle East are carrying out more supply chain audits to guarantee supplier quality standards, according to research.

Quality control services provider AsiaInspection said inspections of Asian suppliers by Middle East firms between January and August this year rose 55 per cent year-on-year.

Demand in Saudi Arabia for factory inspections and audits increased by 45 per cent, with Kuwaiti and Qatari firms’ demand for quality audits rising by 41 per cent and 22 per cent respectively.

The increase is being driven by quality concerns as trade between China and Asia and the Middle East rapidly increases. Particular concerns are unauthorised sub-contracting, and the use of unauthorised materials, the report said. Poor quality means some products are unable to pass customs checks.

AsiaInspection chief executive Sebastien Breteau said tragedies such as the recent factory collapse in Bangladesh, health scandals, and poor quality issues have forced Middle East business owners to police quality control.

"Unless their supply chains and suppliers are independently audited, Middle East businesses stand to lose both time and money by picking the wrong supplier and receiving products that cannot be sold," he said.

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