Transparency–One Supply Chain Risk Management

With the rise of the well-informed and ever-connected shopper, brand owners need - now more than ever - to instill confidence in their consumers in order to secure brand loyalty.

Increased governmental regulations and product crises have led to an increased demand for product safety and quality.

A product that fails to fulfill this demand has little chance of making its way off the shelf and into the home.

Essentially, we are all consumers and we want to trust the brands we buy, believe in the labels we read, keep our families healthy and shop with confidence.

The Challenge
In today’s world we need to monitor our supply chain and measure our product compliance to build consumer trust.

• But how do we achieve this?
• How do we know who is in our supply chain?
• Are there unknown sources upstream?
• Are the facilities compliant with product quality rules?

All of these unanswered questions boil down to the two key challenges: identifying component risks and supplier risks.

Key Performance Indicators
Real-life examples of progressive companies’ reporting are valuable in demonstrating the breadth of content and quality of presentation that can be achieved.

The following metrics were chosen based on their ability to align industry KPIs with specific corporate strategies and objectives.

Visibility
How much information is available about a product supply chain?

• Visibility decreases if information about the product is missing or if a supplier hides information about components or origin

Transparency
How much information does the supplier share about the products?

• Transparency decreases if the supplier fails to share information about all products and their components’ origin