For sure, companies don’t want to put their brand and reputation at risk, therefore why not adopt “transparency in the supply chain” to map data and disclose any required information to trading partners, shareholders, customers and regulatory agencies?
This strategy can have many benefits to all parties, especially consumers who gain more confidence knowing that:
1) their suppliers are honest and responsible;
2) raw materials are of high-quality and
3) products to buy are authentic and safe, while meeting ethical standards.
Organizations who are adopting supply chain transparency practices can easily capitalize many benefits such as: lowering the risk of recall and bad reputation, improving efficiency, increasing trust and satisfaction for consumers and improving cooperation among all partners.
To achieve supply chain transparency, the right combination of digital tools, strategic partnerships and best practices are essential.
For example, many technological trends can be leveraged in this direction: a cloud-based infrastructure is a must to have in order to complete suppliers’ network visibility and transparency.
This real-time backbone can support platforms for product authentication, traceability (serialization and aggregation) and smart data management, with tools such as Artificial intelligence and Big Data Analytics to embrace the entire ecosystem of business partners able to share data in real-time, among all parties.
Where RFID tags/barcodes are useful for product-level transparency (also known as traceability), blockchain could be useful for material-level, by tagging a digital token record to a raw material so you know each origin attribute via the consumer’s mobile device.
Other examples in the food supply chain where transparency means revealing product certifications and claims, information about how products are produced, handled and sourced from farm to fork with a comprehensive list of known allergens, nutritional information and ingredients. A study from LabelInsight shows how transparency can increase ROI for food companies, because it “drives long-term trust and loyalty” as 94% of consumers are likely to be loyal to a brand that offers complete transparency. They would also be willing to pay more for a product knowing its attributes.
As the final goal of supply chain traceability is transparency, Antares Vision, the global leader in traceability has already adopted the strategy of transparency.
Stay tuned for more trendy scenarios that can disrupt global supply chains.