How transparent is your supply chain really?
Often your gut feeling says it’s okay. Or “we are a regional player and know our suppliers personally”. But what about the origin of the services or goods that arrive via your suppliers? What if your supply chain has a complex and international structure with different parties involved? Transparency throughout the entire supply chain is a real challenge. Many companies have no idea how transparent their supply chain really is and how they can improve it. However, transparency is critical to the company’s survival.
4 major advantages
1. Boost voor sales, marketing & branding
Consumers, governments, and also other companies attach more and more importance to detailed information about the origin and use of raw materials and products. An opaque supply chain can have a significant impact on the reputation and consequently the result of the company. A transparent supply chain can therefore significantly contribute to the positive branding of the company. The sales and marketing department will certainly welcome transparency. After all, transparency strengthens confidence in the product and strengthens the fan base of customers.
2. Compliance & kwaliteit aantonen
In some sectors, some form of transparency is required by law. This includes the food sector and the mandatory statements of raw materials and their traceability. A transparent supply chain helps to demonstrate compliance with these obligations. In line with the aspect of compliance, there is also the quality aspect. A transparent supply chain enables the company to monitor and trace the necessary quality requirements with its suppliers.
A transparent supply chain not only contributes to positive branding but also enables the company to conduct corporate social responsibility (CSR). An example here is how the fashion brand Esprit ended its collaboration with a textile factory in Myanmar when it was revealed that this factory was linked to the Myanmar military (which is under discussion due to the situation with the Rohingya). The military link became clear after a report was published by the UN.
4. More efficient operations
Increased transparency and traceability lead to more efficient operations because bottlenecks are discovered more quickly and can be tackled effectively. More efficient operations can also have a positive impact on the cost of products and services, which in turn benefits the market position.
How do you obtain more transparency?
Opting for more transparency is not really a choice. It is necessary. Companies that do not focus on transparency in their supply chain and operations will lose customers eventually. And that is the last thing you want as a company.
New technologies such as the Internet of Things, using different sensors and new structures such as Blockchain, are promising and supportive in the challenge of achieving greater transparency. It is all about clear, detailed, and shared data that maps and facilitates the interaction between the different parties involved.
Yet you can already take nice steps towards more transparency without large investments in new technologies. Internal processes and procedures can already be evaluated and optimized with transparency in mind. Thorough screening of suppliers is also a possible first step towards greater transparency.
Would you like to know more about how to obtain more transparency efficiently and at an acceptable cost?
Rezolv can help you with this challenge! Contact me for a tailor-made plan.