It is no secret that consumers have become more socially conscious in recent years. More than ever, companies are being encouraged to share every detail of their sourcing, manufacturing, and supply chain processes with consumers. And for good reason — customers feel better about purchasing products from a company they know they can trust. Supply chain transparency is a key to success for businesses today.
What is Supply Chain Transparency?
Supply chain transparency involves increased oversight of — and external sharing of information about — what is going on at every stage of a business’s supply chain. To successfully build consumer trust through transparency, there must be complete cooperation between all parties involved in getting a product to the customer. This can include the manufacturer, the logistics and transportation companies, and the retailer. An enterprise seeking to build improved supply chain transparency will typically disclose numerous key pieces of information to consumers:
- Material sourcing
- Employment best practices
- Product quality and safety information
- Sustainability efforts
Companies that find themselves embroiled in problems related to contamination or alleged adulteration of products may quickly suffer a serious hit to their reputation and market share. Even companies that have been able to escape such scrutiny are learning the valuable lesson that increased supply chain transparency is a business imperative.
Transparency and Resiliency
In addition to building trust between supplier, company, and consumer, supply chain transparency can also enhance supply chain resiliency. As supply chain disruptions caused by the COVID-19 pandemic continue to make headlines, resiliency practices are a vital safeguard against future interruptions. Having insight into every moving part of the supply chain allows companies to identify potential risks, monitor them closely, and mitigate them before they impact the supply chain and economy.
Another method to ensure transparency is the use of supply chain traceability technologies, which allow companies to record and follow the trails of products, parts, and materials as they move throughout the supply chain. Having the ability to trace goods on their way to the consumer adds an additional layer to a business’s supply chain transparency.
Companies looking to enhance traceability can also use iGPS plastic pallets, which incorporate smart features that make them traceable throughout a supply chain. These features allow companies to capture data at any point in the supply chain, ensuring better planning, efficiency, and helping to lower Total Cost of Business (TCOB).
The demand for supply chain transparency will continue to increase. This demand presents an opportunity for businesses to cultivate greater trust with their customer base — and set themselves up to navigate potential future risks and hardships.
Companies committed to supply chain transparency use iGPS plastic pallets for all their shipping needs. Our lightweight, recyclable plastic pallets incorporate RFID technology making them traceable throughout a supply chain. For more information, contact us at 1-866-557-0047, email a specialist at [email protected], or visit our contact page.