The international supply chain is presently grappling with regular disruptions and uncertainties due to a variety of factors such as shifts in the geopolitical environment, disruptions in key global trade routes, and policies related to climate change. These issues present substantial risks and strains on companies, necessitating them to enhance their supply chain visibility, traceability, and transparency to effectively tackle these challenges.

A crucial element of ethical sourcing is supply chain mapping. Ethical sourcing requires companies to consciously and actively source and procure goods and services in a manner that is ethical, sustainable, and socially responsible. This implies that a firm will ensure that its business operations, both internally and throughout its supply chain, do not negatively impact people and the environment.

The initial stage in supply chain due diligence and traceability is Supply Chain Mapping. This is crucial when providing compliance reports regarding regulations on forced labour, the German Supply Chain Act, the Corporate Sustainability Due Diligence Directive, EUDR (European Union Regulation on Deforestation-free products), the California Transparency in Supply Chain Act, the UK Modern Slavery Act, among other regulations.

Understanding Supply Chain Mapping

Supply chain mapping is the process of creating a full picture of the network of activities and entities involved in producing and delivering a product.

Supply chains can be extremely complex, often involving multiple tiers with numerous suppliers in each tier. While most companies know who their Tier 1 suppliers (main manufacturers) are, the visibility often ends there. Taking the example of a wooden chair, the supply chain starts with harvesting trees from forests, then continues with timber processing, transporting and distributing, and ends with manufacturing and delivering the finished goods to end-users and consumers.

It is important to map the entire supply chain to gain a thorough understanding of the business and the entities it works with. This process involves more than just recognizing the top tiers; it necessitates comprehending the flow of materials and products within the chain, the relationships among various stakeholders, and the external factors that affect these interactions.

Why is supply chain mapping important for businesses?

The benefits of Supply Chain Mapping:

1. To manage risks
   Supply chain mapping is an essential tool for businesses to identify potential risks and opportunities for improvement within their supply chain. By pinpointing risks and areas for improvement, companies can take measures to mitigate risks, such as diversifying their supplier base and improving the resilience of their supply chains.
2. To Improve efficiency and reduce costs
   With a better understanding of the supply chain, businesses can take measures to streamline processes, minimise waste, and enhance communication and coordination with suppliers and customers.
3. To ensure regulatory compliance
   In addition, understanding your multi-tier supply chain is critical for compliance with regulations on supply chain due diligence and to meet ESG reporting requirements.
4. To become more transparent and sustainable
   Today’s consumers are more conscious about product origin, sustainability, and safety. According to a McKinsey survey, 66% of all respondents and 75% of millennials consider sustainability when making a luxury purchase. An environmentally sustainable supply chain can help improve a brand’s reputation and market position.

Challenges with Supply Chain Mapping

In today’s globalized sourcing environment, companies, regardless of their size, have suppliers located in various parts of the world. As a result, organizations must oversee supply chains that cross boundaries and continents. This presents numerous difficulties stemming from communication, logistics, cultural distinctions, language obstacles, and regulatory compliance.

Businesses encounter multiple challenges in supply chain visibility. These include intricate supply chain networks, absence of standardized systems and clarity, inadequate understanding of supply chain mapping, reluctance in information sharing, and unauthorized subcontracting and raw material sourcing.

API can help you map your supply chain

Mapping your supply chain is not an easy task. API’s household goods and toy experts can assist your company in the identification and end-to-end mapping of all suppliers. We have experience mapping supply chains for companies around the world.

API’s added value:

• Cross expertise: CSR + Sustainability + Technical departments working closely together. Combining knowledge and expertise.
• Field Experience: Thanks to our teams being on the ground at the factories in real time, API’s household goods specialists are uniquely positioned to understand the manufacturing process and its challenges. This allows us to provide bespoke services to address issues at each and every one of the manufacturing stages to help our customers achieve their sustainability goals.
• Sustainability training / seminars: We offer sustainability training for your internal teams, suppliers and factories in English or in your local language.

API creates programs that are tailored to meet the specific requirements of each customer. To find out more about supply chain mapping services, Contact Us.

On January 23, 2024, the European Chemicals Agency (ECHA) published an update of the Candidate List of substances of very high concern (SVHC). With the addition of five new chemicals, the current Candidate list of SVHC now contains 240 substances.

Additionally, the ECHA has updated the existing Candidate List entry for dibutyl phthalate to include its endocrine-disrupting properties for the environment.

5 new substances added to the Candidate List on 23 January 2024 (ECHA/NR/24/01)

Consequences of the Candidate List

• Under the EU REACH Regulation, the inclusion in the Candidate List brings immediate legal obligations for suppliers of the substance – either on its own, in mixtures or in articles. The obligations include:
  • Communicating on safe use: EU or EEA suppliers of articles which contain substances on the Candidate List in a concentration above 0.1% weight by weight have to provide sufficient information to allow safe use of the article to their customers. If a consumer requests such information, EU or EEA suppliers must provide the necessary details within 45 days of receiving the request.
  • Notifying ECHA: EU and EEA importers and producers of articles have to notify ECHA if their article contains a Candidate List substance within six months after it has been included in the list. 
  • supplying a safety data sheet: EU and EEA suppliers of substances on the Candidate List must provide their customers with an up-to-date safety data sheet.
    
    
• Under the EU Waste Framework Directive, companies must also notify ECHA if the articles they produce contain SVHC in a concentration above 0.1 % (weight by weight). This notification will be recorded in ECHA’s database of substances of concern in products (SCIP).

Our technical experts at API can also help support your transition to this or any other regulatory changes.

The European Commission has adopted a proposal for a Toy Safety Regulation – to replace the TSD – that would apply directly to all Member States. This will better ensure Member States do not impose national technical requirements that go beyond the requirements and/or contradict those requirements.

Two objectives of the Toy Safety Regulation:

1. Increase protection from harmful chemicals: the proposal extends the current ban on substances classified as carcinogenic, mutagenic, and toxic for reproduction to include endocrine disruptors (these are chemicals that affect the endocrine system) as well as chemicals that are toxic to a specific organ or affect the immune, neurological, or respiratory system. It also proposes a wider definition of children’s health to include mental health, wellbeing and cognitive development.
2. Strengthen enforcement: checks along the value chain will be strengthened. All toys, including those sold online, should have a Digital Product Passport with all information concerning compliance with the regulation.

Because of their close contact with food, cookware products carry a higher risk of safety issues than many other consumer products. If an object poses a potential safety hazard to users, product recalls may occur.

Product recalls can be expensive and harmful to a brand’s reputation. They can also have long-term effects on how the company is viewed by the public. To ensure cookware complies with international standards, additional tests may be necessary beyond what can be done during a regular product inspection.

In this blog post, we will explore the international regulations in the EU and U.S. that cookware manufacturers need to be aware of. We will also list the most important cookware safety tests that can help prevent product recalls.

Do you have an internal QA team dedicated to completing technical compliance files? Or do you have simply too many SKUs and suppliers to manage that consolidating compliance documents becomes an administrative burden?

Completing a Technical Compliance File is mandatory for most products that require CE marking in the European Union. Brands and retailers globally are obligated to ensure their products are compliant with market destination standards and regulations.

However, consolidating compliance documents can be a challenging task. Many factors weigh in the complex job of ensuring compliance:

• Stricter regulation and the complexity of the regulation
• Increased specific product safety obligations for providers of online marketplaces
• Reinforced product traceability requirements
• Large number of product documentation from various supply chain stakeholders requiring time and technical expertise

In the European Union alone, 3,412 alerts were issued through Safety Gate in 2023 (as of 10 Jan 2023) for products at risk of non-compliance. It is an increase of 61% compared with the number of alerts issued in 2022.

Source: Safety Gate: the EU rapid alert system for dangerous non-food products

In many instances, it is not easy to handle this internally. This administrative burden also attracts its own risks and the need for technical review, as nearly one-third of the documents evaluated by our experts are found to be non-compliant. Reasons for this include:

• Complexity with keeping records up to date
• Multiplicity of suppliers with different maturity and contacts (to be competitive and ensure effective pricing, brands tend to diversify)
• Numerous documents requiring the right expertise, including knowing the applicable regulations to ask for the appropriate documents
• No dedicated team: Considered a dull, administrative task by brand engineers but cannot be completed by someone without technical knowledge
• Process too slow vs. rotation of collections too fast
• Significant time required
• No proper interface to coordinate document collection and review

API’s TCF (Technical Compliance File) solution

To help relieve many of the compliance pressures that your supply chain currently faces, API presents our dedicated TCF solution. Leveraging over 18 years of experience in this service, our team of local and global experts successfully guided customers through an increasingly regulated market with all the technical compliance files available 24/7 online.

The TCF is a digital ID of your product and its proven compliance with the latest applicable standards and regulations, including:

• Applicable protocols
• Document validation/rejection
• Validity over time

We offer support with:

• Setting adequate procedures
• Defining the relevant scope of compliance
• Helping establish additional quality and safety criteria that go beyond compliance
• Collecting and validating a high volume of documents quickly
• Gathering all the documents in one place (available for 10 years)
• Corrective actions and suggestions for artworks.
• Monitor the relevancy of the scope in the context of regulation changes
• Product Compliance lab testing if missing
• Product Validation Report (PVR).

In addition to our experts’ regulatory guidance, brands appreciate the minimal investment required, enjoy a higher degree of control with our clear digital platform, and are ultimately ready to provide the valid required documentation in cases of custom verification.

A new regulation (EU) 2023/1542 was issued by the European Parliament and the Council on 12 July 2023, addressing the topic of batteries and waste batteries. This regulation amends Directive 2008/98/EC and Regulation (EU) 2019/1020 and repeals Directive 2006/66/EC (with effect from 18 Aug 2025).

Some of the key changes include:

• Non-chemical part: requirements on sustainability, safety, labelling, marking and information to allow the placing on the market or putting into service of batteries within the Union.
  • Labelling and marking of batteries
    • All batteries shall be marked with detailed manufacturing information (including manufacturer name, postal address, web and email address, place of manufacture, date of manufacture…), battery info, hazardous substances present in the battery other than mercury, cadmium or lead, QR code, EU declaration of conformity and CE mark, etc.
  • Carbon footprint declaration for electric vehicle batteries, rechargeable industrial batteries and LMT batteries
  • Performance and durability requirements
    • From 18 Aug 2027, portable batteries of general use excluding button cells shall meet electrochemical performance and durability requirements
      • By 31 Dec 2023, the European Commission will publish measures to phase out non-rechargeable portable batteries of general use.
  • EU declaration of conformity

• Restriction on substances
  

To ensure compliance, API can help test your batteries in our Hong Kong laboratory.

Our experts at API can also help support your transition to this or any other regulatory changes.

Contact our experts now for more information!

The sustainability mega-trend hasn’t missed the toy market. Today’s eco-conscious consumers have put toy makers under pressure to produce products that are sustainable, but the reality is that very few toys can be recycled. Most are made from a combination of plastics, metals, and other components that most recycling companies don’t accept. To put a number to it, experts suggest that the toy industry alone is on track to produce more than one million tons of plastic waste annually from 2023. In the face of this staggering plastics problem, the sustainable toy market is growing, valued at US$19 million in 2020 and forecast to reach US$60 million by 2030.

Environmental responsibility isn’t the only driving force behind the rise of green toys. Consumers have become more aware of the health effects of toxic chemicals and materials found in products intended for children and are demanding alternatives. Technological and material innovations have also advanced the sustainability quest, but obstacles remain in sourcing and testing. Furthermore, a combination of kids being stuck at home and eco-anxiety caused by the pandemic has accelerated consumer appetite for made-to-last, planet-friendly toys.

Many of the major players in the toy industry are leading the way to reduce the environmental impact of toys. The Lego Group is on a challenging mission to make all its core products out of sustainable materials by 2030, and by 2025, all its packaging will be made from renewable or recycled materials. The brand has also introduced an initiative (Lego Replay) that invites children to donate their pre-loved Lego bricks to children in need. Mattel Inc. has expanded its Mattel Playback program, which allows consumers to send back a broad range of Mattel toys for recycling and reuse. The brand has also introduced certified carbon-neutral toys and aims to use entirely recycled, recyclable, or bio-based plastics in all its toys and packaging by 2030.

The global sustainability movement has also led consumers to pursue safe and reliable kitchen products that positively impact the planet. While consumers once shared a concern about risks associated with non-stick or aluminum materials, brands are now focusing on recycled materials and sustainable processes and whether they’re introducing new risks to kitchenware safety.

Demand for home cookware products is skyrocketing due to everything from the rise of home cooking during the pandemic to the growing popularity of cooking shows and modular kitchens. Consumers everywhere have been busy trying new recipes, improving their skills, and looking to replace their old cookware with new items.

In the last few years, we have seen companies and brands increasingly change the way they operate. The views of the customer are evolving and companies and brands need to adapt quickly. The coronavirus pandemic catalyzed a debate about the broader impact of human actions, with people concerned about the way we live, issues of social justice, and our destruction of the environment.

Increasingly, customers value companies and brands they can trust. Today’s consumer wants to purchase from companies and brands that are transparent in their work, create an impact, offer sustainable alternatives to regular products, and are vocal about causes that matter. Consumers have rising concerns about climate change, pollution, biodiversity loss, resource scarcity and the wider well-being of society. These changing behaviors and values regarding environmental friendliness, social responsibility, and economic inclusiveness translate into a demand for corporate change.

Source: How sustainability is fundamentally changing consumer preferences – Capgemini

An update of the European Standard EN 14749: 2016 was released in May, introducing the EN 14749+A1:2022 : Furniture – Domestic and kitchen storage units and kitchen-worktops – Safety requirements and test methods. This is one of the primary reference standards for the certification of furniture used in the home. It establishes some changes to the safety requirements and test methods for household and kitchen storage furniture and kitchen workshops.

Some of the key changes include:

• Completion of the definition part.
• Some additional tests and markings in the new amendment for TV furniture.
• New markings for all types of storage units: Any unit intended to be attached to the building shall be supplied with installation instructions.

This standard will replace the previous version from November 30, 2022. If a storage unit is imported to Europe after the date of withdrawal, a EN 14749+A1:2022 test report shall be provided when it’s controlled by market surveillance.

Our experts at API can help support your transition to this or any other regulatory changes.

Do you need more information about this or any other standards?