Why Supply Chain Transparency Matters

Scandal was not only a blow on its image, but it also resulted in boycotts and legal probe by consumers. The former situation led me to ponder on the fact that many companies on the whole cannot really be certain of what is going on in all areas of their supply chain.

Lack of such visibility can cost the companies more than mere publicity. They encounter time wastage, increased expenditure, and even breach of the labor and environmental regulations. In today’s economy, I believe supply chain transparency isn’t just a trend it’s a necessity for staying competitive and trustworthy.

What Is Supply Chain Transparency?

In my mind, when it comes to my supply chain, transparency means being aware of what happens at each stage of the supply chain, that is, the source or origin to the last point of delivery. I desire to know the entire path of every product that I am selling-raw materials- to consumer with no shocks.

Others tend to mix the issue of transparency with traceability but the two are different. Traceability allows me to trace the course of a product; transparency provides me with the conditions, the ethics and practices under which steps are conducted.

I observe transparency to be applied on various levels. In some cases, I hold it to myself to make good judgement. In other occasions, I give it to partners or customers to establish trust. That is how open we are in this modern world and it is what my customers and business associates want to see me and the brands they purchase be.

Why Is It Worthwhile?

Increasing Demand of Transparency Customers are now enquiring about the origin of my products, how they are made or how they are produced and they want truthful answers. 

Regulations are also becoming more intense in the government particularly in the U.S. and Europe. If I can’t show proof of ethical sourcing or labor practices, I risk serious legal trouble and financial penalties. When I invest in supply chain transparency, I build trust with my audience.

Which are the largest obstacles toward the conveyance of transparency?

I do not have control over global suppliers and managing them is one of the most difficult aspects to me. I trust third parties, and the fact that they are not transparent easily turns out to be my liability.

Another great challenge is data. I work on various platforms and, occasionally, my suppliers are not effective sharers of information or have obsolete systems. That is why it is so difficult to correlate the dots or prove the reality.

It is also slow in taking of time and money. It is not easy and cheap to convince partners to open up and acquire the right tools. However, without those adjustments, I am sure I will not be in a position to effectively practice transparency.

What Technologies Help Improve Supply Chain Transparency?

I deploy blockchain to generate an un-alterable record of all transactions in my supply chain. This makes me certain that what I view as data is true and checked.

IoT sensors and RFID tags assist me to monitor the shipping in real-time. I am able to check temperature, location and handling so that products end up in a perfect condition.

Tools that use the cloud provide a common layout to view and monitor supply chain data to me and my partners. I can also use AI to forecast the risks and find the patterns that would not come to my personal attention.

What can I do to make my supply chain more transparent?

First step was to map all my supply chain, including small subcontractors and the direct suppliers. That assisted me to find out the things that I never knew I had blind spots to.

I then formulated a list of objectives as to what I wanted to bring into open multiple things that included labor practices, origins of sourcing and shipping particulars. These are the objectives which informed the type of tools that I selected as well as the questions that I put forth to my partners.

Afterwards, I engaged my suppliers. I promoted sharing of clear data and facilitated it with the tools which helped them to do it easily. I also educated my team to know the reasons why transparency is important and how we measure the same.

Which Companies Are Leading with Transparent Supply Chains?

Patagonia is one of the models that I frequently refer to. They also post maps of their suppliers in detail and describe how they procure their materials in a responsible way. It gives me the idea to be open in my own supply chain just as open.

Another example that I would admire is Unilever. They are anchored on sustainability and traceability, and have gone far in achieving end to end visibility. It is especially their dedication that indicates what we can achieve when the idea of transparency is regarded as a business objective.

Walmart has partnered with IBM to keep control of blockchain in food supply chains. This type of innovation shows me that even the most complicated international networks could be made transparent and responsible.

What Trends Are Shaping the Future of Supply Chain Transparency?

I expect more regulations and laws to be passed that will insist that I show them the origin of my products and how it is produced. I am already training myself to these rules so that I will not fall out of track.

Game is also transforming because of AI. It can make me be ahead of problems that might behead and hence my operations stay smoother.

I believe that in the future customers would expect instant access to the history of products. I would possibly have to provide QR codes or apps that enable individuals to follow every step of a product.

Conclusion:

A Transparent Supply Chain Gives Me a Real Advantage. There is more to being open with my chain supply than preventing risk because being trusted and remaining competitive is the main idea. As soon as I can demonstrate the origin of my products and their production process, I truly add value both to my business and customers.

Yes, it is a hard work but the reward is too good. I do not waste time, I catch early warning signals and I have better relations with partners and buyers. Above all, I will not fail to stand behind each product that I will be selling. Are you in the middle of developing transparency within your supply chain? Which are your best tools or tips? I would like to know your opinion on it, please tell me how you feel and what you have learned.