The transparency of supply chain is our only way forward. To know what we eat is real and what medication we take is real and the product we bought is real – we need transparency!!! over dinner we discussed a few nights ago that halaal food is probably an example of transparency that works and maybe if we all eat halaal we will know that the beef we eat is beef…..
The fast fashion industry is one that always gets away…. At present the British retailers are moving a large chunk of garment production from China to Cambodia and let me ask you why? Of course, the labour in Cambodia is cheap, and the duty into the UK is dropped to ‘zero’ …. so greed steps in and here we ago again with cheaper labour…
The only way to stop the rat race is to go transparent! We have a right to know where what we buy comes from…. If H&M can do it…. why can the rest not do it?
Why is transparency such a vital component of responsible supply chain management? What are sustainability leaders doing to drive transparency at all tiers of their supply chains?
Pressure on companies to be transparent about the risks that exist within their global supply chains has arguably never been greater. From new legislation (such as the Dodd Frank Act, California Supply Chain Transparency Act and the UK Bribery Act) to consumer, media and other stakeholder pressures, companies are expected to be aware of environmental, social and governance (ESG) issues within their multi-tiered networks of suppliers.
The horsemeat scandal and the tragic Rana Plaza factory collapse in Bangladesh serve as stark reminders as to the negative impacts on company reputation and revenue which can result from unaddressed supply chain risks, and underline the growing expectations for greater transparency. However, the sheer size and complexity of global supply chains means tracking and responding to ESG risks is a challenging task.
When it comes to responsible supply chain management, ignorance is not bliss. Without supply chain transparency it’s impossible to gain a full understanding of where the key ESG risks are. The core benefits of increased transparency become apparent when its absence is considered:
- How can you address issues if you don’t know who is supplying you?
- How can you identify supply chain trends and prioritise your activities if you aren’t collecting the right data?
- How can you mitigate risk if you aren’t asking the right questions?
- How can you encourage trust and transparency with your supply chain if your processes don’t respect your suppliers?