- WHY RFGEN?
Supply chain transparency is an extremely important aspect of modern-day production. Companies that show they have nothing to hide are often the most well received by the general public. For instance, Chipotle, a fast-casual restaurant known for its use of healthy, locally sourced ingredients, has a sterling reputation because it advertises partly based on its supply chain transparency.
On the other hand, companies that aren't as well-received in the public eye are more cloak and dagger about their supply chains. More specifically, fast food restaurants that don't communicate what exactly is in their food, or how they manufacture it, typically have worse reputations. The financial detriment a poor reputation has on a company can be dramatic, but supply chain transparency is more than that. In fact, it goes beyond visibility and into the extended supply chain. A business must invest in supply chain management software, improve its visibility and then take action gained through this oversight to better manage risk in production.
Why is Transparency Important?
In addition to improving brand reputation, supply chain transparency also helps companies mitigate risk and make actionable and informed strategic decisions for future operations. Thanks in part to the proliferation of mobile and digital technology, manufacturers are better connected to the extended supply chain. That, in conjunction with the right data collection and supply chain logistics software, can greatly enhance oversight of an entire operation.
However, this progression in supply chain technology comes with a potential challenge. The ebb and flow of supply chain tech is that as production oversight improves, risks also emerge. Supply chains now span more legal jurisdictions, federal regulations and with different industries across a more globally connected manufacturing sector. Even cultural mores come into play when it comes to supply chain practices in a given country or region of the world. As such, supply chain transparency can help businesses not only identify risks early on, but also learn from prior mishaps and take actionable and responsible steps to ensure it doesn't happen again.
Supply chain sustainability can improve through transparency in this context as well. Different business marketplaces are fluid, and the ability to scale is important in today's digital age. A self-sustaining supply chain begins with transparency and investing in the right data collection tools. According to a recent PricewaterhouseCoopers study, 48 percent of respondents said transparency of sustainability and compliance requirements built into day-to-day responsibilities would drive significant improvement into the supply chain. A company can identify, prioritize and then preemptively predict where risks may emerge with the right systems, thus enhancing supply chain sustainability overall.
The end goal of creating a transparent supply chain is important today. However, it takes time and dedication to achieve that objective. Listed below are four steps businesses can take to reach supply chain transparency, per a recent Deloitte study: