admin, Author at ET2C International

A Brave New World of Materials

Industry Insights / admin / Innovation, Materials, sourcing, Sustainability

Spiders. Simply the name of these eight-legged arthropods may be enough to cause some to stop reading here. Their terrifying fangs, pitch-black eyes, and intricate webs have earned them a spot as a quintessential horror troupe. However, what if instead of putting up fake spider webs to scare trick-or-treaters during Halloween, we wear them instead? That’s right. Bio-engineers at multiple apparel companies, including the popular The North Face, are now using synthetic spider silk in their manufacturing process. But why would anyone in their right mind, let alone engineers at one of the top clothing companies in the world, encourage people to wear what essentially is a bunch of spider webs?

As it turns out, the synthetic spider silk is “light, supple, stretchy, and stronger than steel,” according to an article appearing in Popular Science (Grushkin, 2015). These strengths have justified its use in all sorts of fields, including bulletproof vests, wound dressings, and car materials. The utilization of spider webs is just one example of new and innovative materials that have started to make their way into everyday products such as clothes, building materials food, and more.

Will the next generation of clothes be made of spider webs?

Innovative materials, raw ingredients used in production that deviate from the norm, are now more popular than ever. The Industrial Technologies division of the European Commission’s Research and Innovation branch estimates that 70% of all new product innovation is based on materials with new or improved properties (Sheppard, 2012).

But why are companies so eager to adopt these unfamiliar materials? As a matter of fact, there are many explanations as to why companies utilize these innovative materials. For starters, the use of most innovative materials often decreases energy-related costs, which is a prime concern for many manufacturers. Subsequently, there are also many tax incentives for pursuing these more sustainable production methods, on both and state levels in the US and through local governments in other regions (Lagas, 2015).

The macroeconomic benefits of using these materials offer an explanation as to why governments are encouraging these new practices. According to the American Chemical Association, advanced and innovative materials can “support more efficient and sustainable manufacturing practices… reduce dependence on imported oil… lower the burden of CO2 management and improve energy supply security, sustainability, and competitiveness” (American Chemical Society, 2015). These are just some of the many reasons for companies to jump into the new world of innovative materials.

How Companies are Using Innovative Materials

Innovative materials offer a vast variety of benefits, but what exactly are companies doing to integrate these exciting new materials into their supply chains? What new products are being developed with the newfangled materials? The answer is broad and covers a vast ranges of industries and sectors. Here are some more exciting examples of these new materials in action.

Ministry of Supply
Most people are familiar with the range of products for running. However, you may be surprised to hear of someone running a half-marathon in an hour and seventeen minutes wearing a full suit. Josh Whitehead did exactly that while wearing one of the Ministry of Supply’s three-piece Aviator II suits.
While still an impressive feat, the material of the suit may have provided some assistance to Whitehead. The suit is made from warp-knitted breathable poly, which allows the suit to be “breathable, waterproof, moisture wicking, and odor controlling.” In the words of the CEO of the Ministry of Supply, “This suit isn’t designed for running in, but the fact that it can be done is great” (Ducharme, 2016).

Adidas X Parley
There is a lot of plastic in the sea. Unfortunately, the amount keeps rising by an estimated eight million metric tons every year. By 2050, it is estimated that there will be more plastic in the ocean than fish, giving a sense of urgency to this problem (EarthDay Network, 2018). However, this has also caused some companies, like Adidas, to realize an opportunity for incorporating new resources into their supply chain while also doing their part to protect our oceans.

Adidas and Parley have partnered up to manufacture shoes out of sea plastic. Parley, an ocean conservation movement, collects plastic from beaches to send to Adidas to be manufactured into stylish and well-fitting shoes. Not only is Adidas able to save money by having their raw materials donated by Parley, but they’re also able to use the material of the shoes to target the rising segment population of environmentally-concerned customers. Adidas have also recently committed to using only recycled polyester in all of its shoes and clothing with the next six years to increase the sustainability of its supply chain.

Maybe this polluted beach is the resource of your new shoes!

Other Examples of Innovative Materials
While these two examples of companies using innovative materials are inspiring, it is also important to keep in mind the vast number of advanced materials making their way into supply chains are doing so a bit more silently. Even though these materials are not as publicized, they still have a huge impact on the companies that utilize them and the customers who buy the products.

Ultra-Strength Concrete
From 2012 to 2015, China used more cement than the US has in the entire 20th century (Swanson, 2015). This rapid growth has led to concerns about the oftentimes inversely-correlated relationship between quality and quantity, leading to many construction entities looking for alternative materials. Enter the new Ultra-strength concrete. This new kind of concrete changes the contents of cement using mathematical modeling procedures, allowing for a 40% reduction in the density of the water film and a more durable and sustainable form of concrete.

Neptune Balls
Neptune Balls, or Sea Balls, are made of the foliage of a sea-grass species called Posidonia Oceanica. The waste of these plants tends to roll up into small, sphere-shaped objects, oftentimes washing up on shores across the world. The material, however, has been recognized by some manufacturers as an innovative and renewable resource for textiles. It can also be used in its raw form as an insulating material with natural fire prevention properties. The Neptune Balls are a bit of a miracle product of nature as well, since they do not rot, contain no salts or proteins, and are not harmful in any way to humans.

Fungus-Based Materials
While most people are at least familiar with fungus on an appearance level, the study of Mycology (the study of fungi) is still being pioneered in many regards. Because Mycology is relatively immature, new discoveries about the uses of these strange organisms are being made every day. One of these new uses is to produce hard foams naturally through the same processes the thread-shaped mycelium of fungi use to colonize wood, soil and other materials found nature. Essentially, the fungi create a system of very small threads that bind to various organic waste materials. These threads could be used as a reinforcing material in both construction and textile production, providing a cost-effective and natural way to develop products (Sheppard, 2012).

new materials — Mycelium of a Common Fungi Species on Wood

Integrating Innovative Materials into Supply Chains

Even while innovative materials are extremely beneficial for both the planet and the manufacturer, they don’t simply appear out of thin air. There are processes that companies undertake in order to enter into the brave new world of innovative materials.

Some of these processes include employing “green” or sustainable initiatives to keep the company on the cutting edge of technology while also showing respect for Mother Nature. Some common processes companies adopt include upgrading facilities to rid of energy-wasting processes of production, streamlining their supply chains and employee networks, and hiring “green” professionals, such as environmental economists and engineers, to help them eliminate some of the externalities that had to their total cost (Ryan, 2018).

new materials aid innovation — Massive Supply chains come with massive costs, causing many companies to look into how innovation can help them save valuable resources.

These initiatives led to a global movement of sustainable sourcing. One of the massive corporations participating in this movement is Unilever. Unilever states that its sustainable sourcing techniques have allowed them to “secure our supplies and reduce risk and volatility in our raw material supply chains,” while also “open[ing] up opportunities for innovation” (Unilever, 2018).

Companies are not always making the leap alone. Some NGOs, like the WWF, are helping companies trace products along the supply and distribution networks, measuring the impacts along the way. The information the WWF provides allows for companies to realize areas in their products that may be creating unnecessary expenses, allowing for them to explore potentially groundbreaking solutions.

In the words of the founder of Magnifeco, an online source that covers eco-fashion, “Buying isn’t the problem. Making isn’t the problem. Innovation is our way out [of wasting materials].” Eco-friendly and innovative materials not only adds value to a product but oftentimes it also saves the company from wasting valuable resources in the production process. As more and more of these new materials are incorporated into supply chains across industries around the world, industry and trade can become an asset to environmental protection efforts rather than a detriment.

Summary

Companies are opening up to using innovative materials in different ways. They bring a new range of characteristics and applications that will only go on to enhance the product experience. Whether it is textiles with enhanced properties, or materials that aid sustainability or the re-thinking of building materials like concrete, which the Romans had invented some 2,000 years ago, these are all good developments. Humans continue to evolve and with that evolution comes advances in the materials we use. Sometimes though, it is no bad thing to look at some of what Mother Nature has created and to take note, even if it may be hard for those arachnophobes.

At ET2C, we are dedicated to making a difference and understanding the development and commerciality of new materials is key to this. We have already utilized blended fibres (bamboo and Milk) in some of our babywear ranges and recycled plastic on sneakers (part of a sustainability drive). There is a lot of new materials being developed from resins, polymers, activated carbon, the use of recycled materials through to textiles. Our focus is understanding these attributes and, importantly, the application in mass production ensuring that there is the required level of commerciality. Sustainability also forms part of this piece of work, and utilizing materials in a way that can aide this initiative can only have a positive impact.
If you have any questions on any of the above, or ideas, please do not hesitate to contact us.

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ET2C International at Southern Manufacturing & Electronics

Company News / admin / business, Industrial, Industry, Trade Show

We are pleased to announce that ET2C International Inc’s Industrial Division will be exhibiting at Southern Manufacturing & Electronics in Farnborough, 5-7th Feb 2019. We will be showcasing world class, high quality products and assemblies, manufactured in low cost geographies: China, India and Vietnam. Pop by and see us on stand N125!

About Us

ET2C International is a comprehensive global sourcing company that is committed to providing businesses with access to low cost country manufacturing territories (China, India and Vietnam).
We are leading experts in offshore manufacturing within the industrial sector and are well placed to mitigate the risks of producing your products overseas.

For the past 18 years we have been manufacturing and supplying world class components: Castings, Forgings, Plastic Injection Mouldings and Sub-Assemblies, to clients across the globe.
We bring to our clients a wealth of knowledge about both manufacturing and operating in Asia. This includes both strategic and operational advice and tangible solutions to maximise value direct through to the client’s bottom line, whilst mitigating the inherent risk of outsource manufacturing.

Are you looking to benefit from the Asian manufacturing? Do you want to know more about how ET2C can support and add value to your business?
Come and visit us on stand N125 or drop us a line.
We look forward to speak with you!

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6 Common Misconceptions of Buying from Asian Suppliers

Industry Insights / admin / Asia, business, Industry, manufacturing, sourcing

Asia, led by China over the past two decades, has long been one of the greatest centers for trade. From the ancient days of the Silk Road to the modern mega-cities of Guangdong, Shanghai , Delhi, Ho Chi Minh City, Bangalore, Hong Kong, Dhaka to name a few throughout many points in its history, stood out as a home of commerce. However, this does not mean that one should just wade into Asia’s manufacturing sector. The region covers two thirds of the world’s population mixed together with a variety of cultures, languages and political mindsets. The region is a dynamic hub but there is complexity at every turn and understanding what these are at a granular level and how they may impact your supply chain is key to unlocking the vast opportunity that this part of the world presents.

Fortunately, many of these issues can be addressed with some local experience on the ground. The internet revolution has added an enormous upside to how business can be conducted and reduced global expanses to the press of a button at a computer in someone’s home. But with that, people and businesses have assumed that just as it is easy to find a supplier, it is easy to manage the supplier remotely. As a starting point, it is worthwhile to first dispel some of the myths that exist on doing business in this part of the world.

Myth 1: I Can Manage Everything from Overseas

If you were buying from a manufacturer down the road from your home, and were committing considerable working capital in purchasing products or investing in tooling, there is little doubt that you would make sure you had visibility of what was going on at the plant, likely frequenting the site at numerous points during the production. The same should be the case with Asian manufacturers, but too often we see companies managing at arm’s length; different time zones, different language, different culture – what could possibly go wrong?

There is little doubt that any dollar committed to the purchase of the manufacture of products should be carefully managed and looked after. Having some kind of local oversight is vital to making this happen. It allows issues to be identified and addressed when they should be. All because the internet suggests that the factory is a good one, does not mean that your production will necessarily be what you need it to be.

Myth 2: Suppliers are Easy to Find

There is no doubt that sites like Alibaba make connecting with suppliers easier (and that is a good thing!). But that does not mean that these factories are necessarily the best suited to manufacture your products, such as manufacturing capability, market experience, access to certain raw materials, ability to export, size of the business, financial health, location, IP to name just a few.

The key point is developing a sustainable partnership in the truest sense of the word. Selecting the right supplier means, particularly in Asia, having face to face meetings, seeing the site and understand why this company and location is best suited to your needs. We would suggest that going one step further as part of the due diligence process and taking an ‘under-the-hood’ approach can identify any potential issues beyond simply the manufacturing aspect.

Myth 3: Quality and Consistency Will Remain Constant

Engaging with a supplier is the most effective way of handling any quality issues.

Never underestimate the importance of quality assurance and control as an integral part of a production process. Identifying the risks of a production within a critical path should be discussed internally and with the factory from a product perspective and then a quality program implemented to address any of these.

We find that engaging in this arena with the supplier (again at a local level) is the most productive way of managing quality. It should be a continuous improvement process and to the extent that the quality piece is adopted by the factory and all the staff, you essentially have multiple QC inspectors throughout the complete manufacturing process. Again, it should be a partnership.

Myth 4: I can Always Count on My Goods to arrive in a Timely Manner

Addressing errors in an early stage can help creating timely deliveries.

Any production will always have issues and being able to address these in a timely manner is what is key to hitting delivery deadlines. A key component of this comes down to the supplier relationship – albeit the different Asian cultures will also present unique challenges – and the communication channels. We always say a problem is not a problem if it is identified early and can be addressed even if it is the acknowledgement that there is a likely delay to a production because of something unforeseen at least knowing 4 weeks in advance, it is possible to look for solutions on the freight forwarding side or perhaps even update clients, who may be able to look at different delivery windows, just as an example.

It should be recognized though that Asia, and China in particular, have become very good at delivering against the impossible where required. That said, if you do get a cascade of ‘’Mei WenTi”s in response to a complex product matter or a particularly tight deadline, we would urge you to dig a little deeper!
China is leading the world on trade, but its macro-environment is extremely complex which makes it difficult to navigate alone.

Myth 5: I Can Set Up an Asian Office

A local presence is certainly a step in the right direction where there is scale and an internal capability at company level to manage this. There are a variety of locations around Asia that are well suited depending on your supplier hubs and specific regions that both suit your local market and your product manufacture.

Just be aware that this does come at a considerable cost and there will be an investment required that may be difficult to actually recover. Often professional services firms will give a simple overview of the ease of establishing an entity in Asia (we have seen this many times) but the reality is markedly different. We know this because we operate across multiple Asian markets.

There is a complexity every which way you turn from simple points around different language to the legal status of legal representatives (personally) through to transfer pricing and the management of Fapiaos (Chinese invoices). The point is that from a Sourcing perspective, should a company be investing capital in setting up an entity based on scale and also the current fluidity present in the Asian manufacturing base. There are lots of other options that may be more cost effective and reduce the level of risk that a company takes on. Do not get distracted from the main event; the management of your Supply Chain.

Is setting up a buying office the most effective tool for you?

Myth 6: I can Buy from Asia at Arm’s Length

There has never been a time where partnership has been more important. It truly is the single most important aspect of sourcing from Asia, in our opinion, in this current climate. The ability to have a company that truly partners and buys in to your plans, understands your needs and actually invests in their own facility to be able to deliver is essential.

As partners, the factories or suppliers need to be treated fairly. There is simply no point in continually knocking down prices year on year, as we have seen and experienced before. That’s not to say that one should not be commercial, but it is around paying them fairly, committing over a period of time and giving visibility of what they should expect. In this relationship, the supplier will have clear sight of what they need to do, perhaps what capability they need to develop and have the funds to do so. Where a supplier is struggling to make ends meet, then this will increase the risk of quality issues arising through sub-contracting or cheaper raw materials, or a lack of interest in dealing with the orders or not following through on the Sustainability Code of Conduct that you agreed and implemented earlier in the year.

Ultimately, paying a little bit more now, will go a long way over the medium term.

Summary

There is nothing complex about any of the above points. It is just necessary to take a view about how best to manage at a local level your suppliers. There are a range of options available and picking the right one will be the difference between a good year or a bad one. There is always going to be risk when you are purchasing from foreign suppliers. Think about how best to manage this.

asia sourcing — Purchasing from foreign suppliers can be complicated. To get the most out of the Asian manufacturing base, ask us for any procurement or sourcing insights.

The key points are visibility of production and developing those partnerships either directly or via third party service providers.
We, at ET2C, are well placed to have discussions with you about your current supply chain across Asia (offices in China, Vietnam, Hong Kong and India currently) and whether we are best suited to help you. Give us a call or drop us an email.

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Making Green Waves: 10 Companies that Are Leading the Way in Sustainability

Industry Insights / admin / business, environment, Sustainability

Ever since the release of Rachel Carson’s 1962 book “Silent Spring,” the idea of sustainability has always at least been in the periphery of many companies. Things progressed in the 1970s, as pressure for environmental protection was turned up by NGOs such as GreenPeace (1971), Friends of the Earth (1971), and the earlier-formed WWF (1961). In the 1980s and 1990s, catastrophic events such as the Exxon-Valdez oil spill and the Chernobyl Nuclear Disaster caused the call for global responsibility to become more compelling. Recently, with many governments and multilateral organizations pushing for sustainable development, many companies have adapted to the relatively-new emphasis on environmental through a multitude of devices.

There’s good reason for jumping on the sustainability bandwagon too. The business & Sustainable Development Commission recently revealed statistics on the value of sustainable business models and how it could “open economic opportunities worth up to US$12 trillion and increase employment by up to 380 million jobs by 2030.” With many nonrenewable resources running out and governments across the world giving subsidies to eco-friendly businesses, many firms have heeded the call for environmental protection.

However, even though many companies are acting to protect the environment, there are some whose massive-scale efforts and innovative ideas serve as an inspiration to others. Here are ten companies that are making a difference for a greener and more sustainable planet.

companies in sustainability — Here’s 10 Companies that are working together for a healthier and Greener Planet

10. Walmart

What They’re Doing: The number one company on the fortune 500 list, Walmart is also doing its part for the environment. Walmart has set some pretty ambitious goals for itself when it comes to sustainability. Walmart’s website states that its sustainability goals consist of “creating zero waste, operate with 100% renewable energy and sell products that sustain our resources and the environment.” While ambitious, Walmart has already made significant strides towards these objectives, boasting statistics such as “78 percent of global waste diverted from landfill” in 2017 and investing $25 million over five years on food safety projects in China (Walmart, 2018).
Big Project:
Project Gigaton– avoid one billion metric tons (a gigaton) of greenhouse gases from the global value chain by 2030.
How it works: suppliers can take their sustainability efforts to the next level through goal-setting, and get credit from Walmart for the progress they make (Walmart, 2018).

9. Google

What They’re Doing: With a motto like “Don’t be evil,” it’s no surprise that Google, one of the centerpieces of silicon valley, has already progressed in making their company more sustainable. Since starting their sustainability efforts, Google has touted some impressive numbers surrounding sustainability. Some of their remarkable accomplishments include Google data centers using 50% less energy than the average data center, diverting 91% of waste from their global data center operations away from landfills, and empowering their suppliers to use renewable resources. (Google, 2018).
Big Project:
Global Fishing Watch – “provides a transparent view of commercial fishing activities across the globe, in hopes of protecting critical marine habitats and providing new tools for sustainable fisheries management for the long term.”
How it Works: offers near real-time tracking of fishing activity through their public map, enables scientific research, and improving fishing management (Global Fishing Watch, 2018).

8. Nestlé

What They’re Doing: With an image of a bird feeding her offspring as their logo, it’s perhaps not much of a surprise to uncover that this food and beverage company has worked hard to protect nature. Nestle boasts an impressive eco-friendly resume, with actions like systematically reducing the weight of their packaging since 1991 (with a reduction of over 500 million kg to date), and utilizing a team of over a thousand agronomists to provide training to their farmers to minimize their environmental impact. (Nestle, 2018)
Big Project:
Water Stewardship – “aims to be responsible stewards of water, ensuring it is available and managed sustainably, protecting it through high-profile collaborations, treating the water we use as effectively as possible, supporting our supply chain in the use of water, educating communities on how to use water efficiently, and improving access to water and sanitation”
How it Works: Reducing water consumption, protecting and preserving water resources through research with NGOs like the WWF, and Zero Water technology (Recycled water). (Nestle, 2018)

7. Cisco Systems

What They’re Doing: Cisco systems, a hardware producer out of San Francisco and one of the key firms in Silicon Valley, has also stepped up to the plate to work for a greener planet. The company has implemented some inspiring environmental-protection measures as well, including having sustainable energy accounted for 80% of their worldwide electricity use.
Big Project:
Rhino Conservation – Cisco and Dimension Data partnered to track poachers at a game reserve in South Africa, successfully reducing rhino poaching in southern Africa by 96%.
How it Works: Cisco develops seismic sensors, drone cameras, thermal imaging, and biometric scanning technology to be used in anti-poaching efforts.

Cisco has implemented some inspiring environmental-protection measures, including having sustainable energy accounted for 80% of their worldwide electricity use

6. Apple

What They’re Doing: Perhaps one of the more well-known brands on this list, Apple has always set itself from the pack through innovation and creativity. Apple has carried these sentiments into its efforts in sustainability, achieving a fall in total transportation emissions fell by 3 percent in the fiscal year 2017 while their corporate employee headcount grew by 9 percent. In April 2018, Apple had 23 partners committed to 100 percent renewable energy for Apple production and to lower emissions by focusing on aluminum production, which “reduced emissions associated with every gram of aluminum in iPhone by 83 percent” (Apple, 2018).
Big Project:
Closed-Loop Supply Chain – This project will see Apple products made using recycled or renewable materials only and will return an equivalent amount of material back to the market to be used by Apple or other entities.
How it Works: Encouraging customers to return their iPhones during upgrades, recycled materials from outside recycling sources, and disassembly sections in factories.

Apple has always set itself from the pack through innovation and creativity and has carried these sentiments into its efforts in sustainability

5. Honda

A slogan like “You meet the nicest people on a Honda” seems to be a bit of a stretch, but it hasn’t stopped Honda from working tirelessly for a brighter and healthier future for the planet. Honda has taken sustainability measures such as aiming to reduce the CO2 emissions intensity of motorcycles, automobiles and power products by 30% compared with 2000 levels by 2020. Honda also has bragging rights as it became the world’s first mobility company to disclose estimates of all GHG emissions from its entire value chain in August of 2012 (Honda, 2018).
Big Project:
Triple Zero – Three goals relating to the number zero: Zeroing CO2 emissions using renewable energy, Zeroing energy risks, and Zeroing resource and disposal risks.
How it Works: Management of resources and working with disposal partners to ensure safe and effective transfer of waste materials, working with renewable energy companies to integrate technology into automobiles, and encouraging customers to pursue environmentally-friendly lifestyles (Honda, 2018).

4. Interface

When a company is known more for its sustainability efforts than the actual product it sells, then it’s clear that the company is serious about environmental protection. The company dropped jaws back in the nineties when it announced that it would eliminate any negative impact its company has on the environment by 2020. So far the company has done well in keeping its word, they’ve replaced latex in their precoat with recycled PVB, recycle used fishing nets for materials, and their factories all use 95% green energy, allowing them to run more efficiently (Interface, 2018).
Big Project:
Mission Zero – Eliminates any negative environmental impact the company has by 2020. So far they have reduced their carbon footprint per square metre of produced carpet by 98%, water usage by 93%, and factories use 95% renewable energy and send zero waste to landfill across Europe.
How it Works: Radically redesigned the company their products and the way they do business.

3. Ikea

Known for their DIY and oftentimes less-expensive furniture, IKEA is now aiming to get recognition for its environmental sustainability efforts. Ikea has introduced new products to aid people in cutting their energy and water use, such as a tap nozzle that reduces water usage by 90 percent, and air-cleaning textiles. The company has also introduced new and more sustainable materials into their production process, with 100% cotton 77% wood in IKEA products coming from sustainable sources, citing that it will ultimately help lower costs while also doing the right thing.
Big Project:
IKEA Group Sustainability Strategy for 2020 – Will see 91% of waste from their stores recycled or incinerated for energy recovery, increase in the use of sustainable materials in production, and selling LED light bulbs to save energy (so far they have sold 85 million).
How it works: Marketing campaigns encouraging the buying of LED bulbs, working with sustainable suppliers for materials, tracking the production of products to identify wastes of energy and materials. (IKEA, 2017)

2. Unilever

Unilever has a lot of products under its control, including Dove, Lipton, Axe, Popsicle (yes, it’s a brand), and Marmite. With great power comes great responsibility and Unilever has famously demonstrated itself as responsible. Unilever has set three main goals for its sustainability efforts which are to help more than a billion people take action to improve their health and well-being by 2020, halve the environmental footprint of the making and use of their products as they grow their business by 2030, and enhancing the livelihoods of millions by promoting fairness in the workplace, opportunities for women and inclusive business by 2020.
Big Project:
Unilever Sustainable Living Plan – Aims to create sustainable growth through brands with purpose, cutting business costs, reducing risks and building trust with consumers
How it Works: Unilever will follow the UN Sustainable Development Goals. Since the company is so gigantic and covers so many different products, the actions it is taking to be more sustainable range from the extraction of raw materials to manufacturing chemicals, causing the comprehensive UN Sustainable Development Goals to serve as a reliable tool for the company’s entire supply chain (Unilever, 2018).

1. Patagonia

Dubbing itself as an “Activist company,” Patagonia has put environmental protection as the company’s main priority. Patagonia has already claimed recognition as one of the largest funders of environmentalist causes. The company gives 1% of its sales (not its profit, its revenue), to environmental grants and organizations, funding everything from local nature perseveres to massive NGOs like the WWF. The company has donated 89 million dollars to environmental causes since 1985 in addition to giving 954 grants in 2017 alone. The company also encourages the buying and selling of worn wear, encouraging its customers to send back in their used gear so it can be repaired and sold again. The site also offers tips and guides on how to repair your own clothing, encouraging their customers to reduce clothing waste and learn a new skill.
Big Project:
Tin Shed Venture – Patagonia’s corporate venture capital fund partners with businesses focused on building renewable energy infrastructure, practicing regenerative organic agriculture, conserving water, diverting waste, and creating sustainable materials
How it works: Funds small businesses that apply for funding. The businesses must be working for a better environment and prove how they are doing so in their application. A full list of companies can be viewed here.

Summary

The UN has set their Sustainable Development Goals (SDGs 2015) and there are a range of different elements from health to equality to environment that need addressing. Consumerism has been rampant for the past 30 years spurred on by the rise of technology (the likes of Amazon etc) and low cost products from the East. The consumer is now evolving and a Brand’s stance or position on sustainability and the broader horizon will become increasingly important as part of capturing a sale.

The above projects and the companies that founded them are part of the inspiration for us at ET2C to engage with the Sustainability discussion and to start the implementation of our own ideas within our business and across our supply chain in 2019. With operations in China, Vietnam and India, we have an opportunity to make an impact, however small, in emerging economies as well as through collaborating with our clients in their own respective markets. #dogood, #sustainability taskforce.
For queries related to Sustainability, why not email us at sustainability@et2cint.com .

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Make it a Sustainable Christmas!

Company News / admin / Christmas, Sustainability

After attending Sustainable Brands Madrid, a lot of research, brainstorming (and coffee!), this year we finally launched “The Sustainability Taskforce”, our internal initiative to better understand and articulate what ‘sustainability’ means to us and our stakeholders but also more broadly as a catalyst for change going forward.

More than ever, this topic has been a frequent discussion point when speaking with clients about materials, suppliers and overall brand strategy due to changes in local regulations or the evolution of the consumers’ purchasing behaviour. We care about it, and we want to engage with this discussion, share knowledge and ideas and ultimately set in place a collective that makes a difference.

Make a difference. #DoGood this Christmas

Therefore, this Christmas we decided to engage with our clients and partners that are already part of this conversation. By sending them a personally selected eco-friendly gift, we are hoping to activate them to share their commitment to sustainability.
In particular, we’ll ask them to use their social media channels to tell a ‘sustainable story’ and explain their promise or commitment to sustainability, using the hashtags #DoGood and #SustainabilityTaskforce.

We have identified a range of partners in three different client markets, who have allowed us to send some very nice sustainable gifts. For the US, we have chosen The Little Market, which is a non-profit founded by women to empower women, offering handmade fair trade products created by artisans around the world.

For our UK clients, we have selected as a partner GlobalWAKEcup, a start-up with a mission to impact the use of single use plastics, proposing stylish and environmentally friendly alternative to single-use cups, bottles, bags and straws.

Lastly, for Australia and New Zealand, we partner with Ecostainable, a company that is focused on ‘Changing the world, one home at a time’ with a range of eco-friendly and sustainable products for you and your home.

sustainable

Join our Journey

This is only the start. As a business we are committing to driving forward a range of initiatives in line with some of the UN’s Sustainable Development Goals (2015). Across environmental issues to poverty to inequality, we are looking to start small and work towards some targets that resonate with us an organization to make a difference.
Do you want to be part of this journey and share with us your commitment to sustainability?
Follow this initiative on LinkedIn, Facebook and Twitter and share your story on our or your social media.
It can be anything. It could be around what you already do at home, or perhaps an initiative already in place at the workplace. We are looking for variety so by all means make them personal and fun!

Remember to use the hashtags #DoGood #SustainabilityTaskforce and add a picture if you want!
We are thinking big but are aware that this journey has to start with small steps.
Together we can make a difference.

sustainable task force

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Sustainability in Manufacturing: Made in China 2025 and the BRI

Industry Insights / admin / China, Made in China 2025, manufacturing, Sustainability

Sustainable manufacturing is becoming one of the key criteria for consumers when deciding what product to use. The process of sustainable manufacturing includes the creation of products through economically sound practices that limit the negative impacts on the environment. Consumer opinions, regulatory policies, and changing environmental conditions are all factors that have led to the emergence of sustainable manufacturing as a popular, profitable, and viable option for manufacturers that are seeking to capitalize on the green economy, minimize their impact on the environment, and reduce their consumption of energy and resources.

Made in China 2025 and Sustainability

Chinese manufacturers find themselves in a transitional period. The country is no longer the best location for cheap, low cost manufacturing, but it has not fully evolved into a high-tech, developed industrial economy. China is making great developments in its industry with new additions of automation and robotics in the factories, but there is still a lot of ground to cover. China is feeling pressures from both more developed industrial bases as well as more labour intensive export manufacturing regions. In order to overcome these challenges, China has launched the Made in China 2025 initiative to bring the Chinese economy to the cutting edge and make a high-tech, sustainable manufacturing base.

In the process of developing their manufacturing into a high-tech, automated industry, China is also investing in the creation of sustainable manufacturing. By relying on and using AI, and the digital economy, China is transitioning their manufacturing base to a modern, developed economy. This also reduces the use of heavy industry and relies more on mass customization consumption and makes use of Industry 4.0 practices, thus making this method of manufacturing more sustainable.

This reduces the use of heavy industry and relies more on mass customization consumption, hence increasing overall market sustainability.

Can the Digital Economy Keep the Belt and Road Initiative Sustainable?

One of the key areas where China is experiencing conflict between development and sustainability is with the “Belt and Road” initiative (BRI). Globally, the BRI has received criticism and has been questioned about its sustainability and the long-term impact that it will have on the environment. However, in 2017, President Xi Jinping addressed some of these concerns by announcing that cutting-edge technologies and business practices from the 4th Industrial Revolution are being brought to the BRI.

President Xi Jinping said, “We should pursue innovation-driven development and intensify cooperation in frontier areas such as digital economy, artificial intelligence, nanotechnology and quantum computing, and advance the development of big data, cloud computing and smart cities so as to turn them into a digital silk road of the 21st century.” The “Digital Silk Road” could bring new green technologies and sustainable manufacturing practices to emerging markets. This would help lay the ground work for the development of a more sustainable, and environmentally-conscious global market in the future.

The BRI/Digital Silk Road and the Made in China 2025 initiatives are efforts working towards creating a sustainable digital economy that can bring new opportunities to small and medium global actors, incorporate new markets into the global economy, develop high-tech manufacturing bases, and employ sustainable economic practices.

Green Manufacturing in China

Green manufacturing is a key development and a central trend in China’s transitioning manufacturing sector. Moving forward with the Made in China 2025 initiative and the BRI, along with the global environmental and economic forces, manufacturing in China will make a significant shift to become a potential leader in green manufacturing and sustainable industry.

The 4th Industrial Revolution, Made in China 2025, and sustainable manufacturing all pair well together. The digital aspects of the 4th Industrial Revolution and the automation of manufacturing in Made in China 2025 can reduce the waste, energy consumption, and environmental cost of production. Xin Guobin, vice-minister of the Ministry of Industry and Information Technology said that “Green Manufacturing Association of China will also explore a new development mode by connecting green manufacturing and the internet and establish a green manufacturing system and ecosystem for the country’s green and sustainable development.” By using the Internet of Things and modern software to connect the manufacturing process at all stages waste can be cut down and the production process will be more sustainable in the long term.

Sustainable manufacturing is not only a trend in China, but also globally. For example, there has been an emergence of innovative sustainable manufacturers outside of China in countries like Vietnam and Indonesia (industries such as apparel). In order to remain competitive within the global economy, China needs to continue this evolution to maintain its value proposition to Global retailers and Brands. The initiatives set out by the Government only go to build on the environmental inspections carried out in 2017 and also accelerate investment in sustainability on a broader scale. China therefore has one of the fastest growing sustainable manufacturing sectors and it is a great location for foreign businesses seeking to outsource their production to ethical and sustainable manufacturers.

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Welcome to the new ET2C.com

Company News / admin / et2c, services, sourcing

We are delighted to announce our brand new website! Now with an easy-to-use interface, navigating the ET2C website has never been easier.

What’s new

The renovated structure and style will now allow visitors to easily find whatever they are looking for, whether it be sourcing and procurement assistance, buying office information, quality assurance, or comprehensive articles on the state of affairs in the world of sourcing.

Why we’re upgrading

With the new additions and redesign, the message of our high-grade services has never been clearer. The new style aims to display what we at ET2C are all about, low-risk and profitable solutions that enhance your supply chain.
The content available on the website has also increased, including supplementary material on each of our services as well as sections describing our history and mission at ET2C, and some of the exciting new projects our team is developing.

Stay updated with our latest news

Moreover, we’ll frequently update the industry insights and company news portions of our website, providing you with the latest news on sourcing and procurement from our knowledgeable experts. You can also check out our latest posts on Facebook, Twitter and LinkedIn for more articles relating to global sourcing, international relations, innovative technologies, logistical developments, and much more. And don’t forget to subscribe to ET2C Newsletter!

Contacting us has never been easier

Finally, we have also updated our contact page to reflect our international presence more accurately. Dedicated pages have been created for the ET2C branches in Vietnam and Mexico, for those who want expert sourcing assistance from these powerhouse economies.

Next Steps

The new website plays a critical role in displaying our offerings as we continue to build our company in a way that reflects the skill and reliability of our services. We also understand that in order to be at the forefront of sourcing, we must be able to adapt and respond to the needs of our clients. If you have any suggestions regarding our new website or simply a few questions relating to our services, please feel free to contact us.

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Deconstructing Sustainability

Company News / admin / manufacturing, Retail, Sustainability

Sustainability is a broad term, and one that is probably at risk of ‘burn-out’ in the retail sector the world over. Brands, retailers and suppliers are increasingly aware of the necessity to be formulating their own position around sustainability due to their respective stakeholders. Clearly, this is mainly driven by the end consumer and the need for a much deeper connection between a particular product/brand and the values that they stand for; they need to be purpose driven.

However, it is often easy to get lost in a ‘sustainability haze’ and not fully understand or be able to articulate what it means to both you and your organisation. Is there a cohesive sustainability strategy? Is it relevant and personal to all the organisation’s stakeholders? Is it simply someone putting up a sticker over a bin for recycling the staffs’ lunch containers? Is that sufficient? Are we sustainable? This confusion should not be surprising. The list of topics that fall within this category are many and understanding how one can change the world looking at this list relative to what you and your company do on a day to day basis is perhaps beguiling. From conflict minerals, material wastage, women’s rights, child labour, water filtration (700 million people do not have access to clean drinking water), climate change, lighting use, energy efficiency, single use plastics, plastic fibres to ‘one for one’ schemes, circular services (re-cycling) and brand activism, the list goes on.

The point is that any change is good. Making an impact on our earth and society, however small, as an organisation can only be a good thing. But, it needs to be personal. It needs to resonate with your company’s staff and is something that makes them engage in this change. The interesting part of this puzzle is that ultimately companies that ‘do good’ (and there is a purpose driven aspect to what they do), actually generate higher profits ultimately even with the initial capital investment/cost required at the outset.

So where to start? All we need to do is take little steps to make a change and this starts with you, as an individual. It does not need to be a ‘moon shot’ moment (an audacious statement to change the world in a big way tomorrow); such as halving the impact of climate change or giving every person on the planet access to clean water. But it needs to start with you and what’s important to you? And, hopefully, together we can all make a difference to future generations.

We are currently articulating what Sustainability means to our staff and stakeholders on a personal level to develop some emotive issues that we as an organization can seek to address.

While we continue to provide updates, please read our latest article about sustainability.

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The Middle Path: How India is Capturing the Eyes of the World

Industry Insights / admin / China, India, Tariffs, trading, US

Eyes are glued to TVs and news outlets everywhere. One of the biggest fights of all time is befalling and everyone has a stake in it. Yet, this isn’t a match hosted by the UFC. This is a fight between two of the greatest economies of all time. One can imagine an announcer calling out to the audience as an irate Uncle Sam battles an angry panda, just as so many political cartoons have depicted. However, no gloves with the words “tariffs” or “duties” are being used here. Instead, these two giants are making waves throughout the Global economy with decisions that will impact the livelihoods of billions of people. However, there is one country that both of these super powers are turning to pull them up from the damage of the trade war: India.

An Economy that Can Compete

India’s economy has been quietly chugging along while the two superpowers compete. As this is being written, India currently has the World’s fastest growing economy for large nations with a GDP growth of 7.3% that is expected to rise within the next two years, as stated by the World Bank’s official site. As China’s middle class grows and tariffs increase, many business people see India as a ripe place for business. India’s response? Bring it on.
India has already been seen making hefty investments in up-and-coming industries like AI, automation, and robotics. A CNN report focusing in on the development of robotics and AI in India displayed autonomous vehicles in labs and parking lots, complete with ambitious young entrepreneurs enthusiastically declaring their faith in their products’ success as the Indian economy continues to grow.

As India’s economy grows, so have the number of high-tech industrial plants and ports.

It’s not just the investors that are optimistic, however. A Financial Times interview with Anand Mahindra, one of Fortune Magazine’s Top 5 most powerful business people, exhibited the businessman’s enthusiasm for the growing economy and his expectations for India’s future. Mahindra expressed that the “nature of manufacturing has changed… lots more embedded IT tech.” More information technology being produced in India could mean that supply chains within the country will flow more smoothly as this technology finds more uses within the market.

The Great Migration of Business

Furthermore, many companies have already started moving to India, adding a feeling of urgency to start investing in the rapidly rising economy. An article in the financial times describes the Chinese Smart TV business, Xiaomi, as one of the companies who have embraced the bourgeoning Indian economy. The company quickly set up a state-of-the art facility in Turapati, which now employs over 850 people and can produce over 100,000 LED TVs a month. The company has also noted their keenness regarding the huge potential buyer population and the rising levels of incomes within India.

The shift to India has so many factors playing into it, but much of it revolves around the country’s open economic environment, which starkly contrasts against the dangers the trade war poses to companies who currently operate in both the US and China. One of the factors motivating the migration of businesses is that it is mostly risk-free. In other words, moving trade from China to India does not mean that connections with China will be lost. An article from the Eurasia Review spoke on how “Chinese President Xi Jinping and Indian Prime Minister Narendra Modi agreed… to explore bilateral and multilateral cooperation in a mutual spirit of candour and cordiality.” Moreover, sources from the Financial Times inform us that the “QingDao declaration” has seen China and India cast away anti-trade policies like protectionism in favor of free trade and cooperation. As relations warm between China and India, more businesses are seeing India as a prospective home for international commerce.

Make in India

India has also promoted domestic and international trade with Modi’s “Make in India” campaign. While the movement sets inspiring wide-ranging objectives, some of the smaller policies of the movement set extremely promising and ambitious goals. For an example, the Draft Electronics policy will see India invest to double its cell phone production by 2025. The country already annually produces 500 million cell phones, so an additional 500 million will create a huge demand for factory employees, supply chains, and knowledgeable management. India is moving to make the country an “import-free nation” as well, according to ZeeBusiness, creating a one-stop shop for “facilitation of investments/ businesses, coordination with the state governments, establishment of joint ventures, obtaining speedy approvals and hand-holding companies till the manufacturing unit becomes functional.” India’s open-arms approach to trade, combined with the right government policies, could make India the next international hub for trade.

India’s policy sets out to meet the opportunities provided by the current political-economic situation by setting ambitious goals for international trade.

Final Thoughts

To conclude, there is still much uncertainty with the eventual outcome of this Trade War. The gloves are off and neither side have so far blinked. Some commentators are suggesting that American populism and nationalism continues to be on the rise. Time Magazine’s article “How Trumpism Will Outlast Trump,” speaks on how Trump’s rhetoric has given birth to a new wave of nationalistic intellectuals, who have been working their way into many high-ranking government roles.

Others are pointing to mere politicking around the mid-terms and a helpful bounce in the polls for the Trump administration. The same opinions are pointing to the fact that if tariffs are beyond medium term, then they will only serve to hurt Trump’s electoral base; those that shop at the likes of Walmart and other low cost retailers.

Whoever history sides with, there is every reason for US companies, if they have not already, to be looking at alternative export manufacturing jurisdictions and India displays promise as it proves itself as the center of a new era of international trade. For more information on India, please contact us at india@et2c.com .

The Middle Path: How India is Capturing the Eyes of the World Read More »

What is USMCA and how are Chinese goods directly related?

Industry Insights / admin / Canada, China, Mexico, NAFTA, trading, USMCA

Following up on the trade talks between USA, Canada and Mexico to renegotiate what was NAFTA, President Donald Trump recently reported that Canada will be joining the renewed agreement previously reached with Mexico (now called USMCA). This was completed after several trade talks and rounds of negotiation in regards to key chapters of the so-called deal about main issues such as intellectual property, digital commerce, agriculture, and automobiles, among other topics.

Tensions begin to calm.. with a deal

Before this, there was some tension and discussion towards what could happen with Canada if they could not meet American demands or fairly negotiate auto-tariffs in particular according to the New York Times. Although the Canadian nation did not refuse to continue bargaining, Prime Minister Justin Trudeau managed to firmly state they could not guarantee they have ceded to all US requests.

Now, according to Morning Star the new deal will mainly impact the automobiles industry. “A new rule stipulates that at least 40-45% of a car must be made by workers earning at least $16 an hour. That’s more than five times the amount Mexican auto sector workers currently earn.” Also, the United States will have access to the Canadian dairy market, which they have struggled for many years.

The shift from NAFTA to USMCA will affect significantly the Auto Industry. Now is the time for auto manufacturers and auto part makers to strategize how their organisations can optimise their position within a newly framed North American auto industry.

In addition, all parties involved will have to sign the agreement before the year ends and have expressed they feel comfortable and benefited, especially the US as “both Canada and Mexico are its largest single country export markets”, as stated by Edward Park, investment director at Brooks Macdonald.

China’s influence

But where do Chinese goods stand in all of this? As the known commercial war between USA and China around the tariffs that Trump has placed over Chinese merchandise has certainly cause some uncertainty as they are both the most powerful countries in the world, some specialists and economists have pointed we will be able to see further moves until President Xi Jinping visits Trump in upcoming weeks. Others do mention as well that if the American President “gains traction in signing US friendly trade deals it is likely to solidify the harder line that the administration is adopting with China.”

President Trump and Chinese President Xi Jinping are looking more likely to meet late next month at the Group of 20 summit in Buenos Aires to discuss their escalating trade dispute.

Moreover now that Mexican President Peña Nieto is finishing his term and AMLO’s new administration is about to take over the Mexican nation, it is crucial that all advances over the past months finalize for the Americans. Some experts also have mentioned this new government figure of what AMLO represents and is looking for China to increase business and have more influence over Latin America. This is because AMLO’s interests and policies could be alike to some of China’s and may put at risk Trump’s plans.

What is USMCA and how are Chinese goods directly related? Read More »

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Made in China 2025 and Sustainability

Can the Digital Economy Keep the Belt and Road Initiative Sustainable?

Green Manufacturing in China

What’s new

Why we’re upgrading

Stay updated with our latest news

Contacting us has never been easier

Next Steps

An Economy that Can Compete

The Great Migration of Business

Make in India

Final Thoughts

Tensions begin to calm.. with a deal

China’s influence

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