Gartner Logo

Read the June 2022 Gartner Market Guide for Supplier Sustainability Applications

Learn more
SupplyShift Logo SupplyShift SupplyShift Logo SupplyShift
How It Works Expand How It Works Menu
Product Overview Starter Assessments Standard Assessments Custom Assessments See A Demo
Solutions Expand Solutions Menu
Pricing
Industries Beauty & Personal Care High Tech & Electronics Pharmaceuticals Food & Beverage Apparel Retail
Issues Climate Change Impact ESG Investing Modern Slavery COVID-19 Deforestation Diversity Plastics
Insights Expand Insights Menu
News & Blog News Blog
Resources Analyst Report Success Stories Webinars White Papers
About Us Expand About Us Menu
Get to Know us Alliances Our Mission & Story Our Values and Team Careers Contact Us
Support
/
Login Let's Talk
How It Works
Solutions
Industries Expand Solutions Menu
Beauty & Personal Care High Tech & Electronics Pharmaceuticals Food & Beverage Apparel Retail
Issues Expand Solutions Menu
Climate Change Impact ESG Investing Modern Slavery COVID-19 Deforestation Diversity Plastics
Pricing
Insights
News & Blog Expand Insights Menu
News Blog
Resources Expand Insights Menu
Analyst Report Success Stories Webinars White Papers
About Us
Get to Know us Expand About Us Menu
Alliances Our Mission & Story Our Values and Team Careers Contact Us
215 River Street Santa Cruz, CA 95060 415.935.1697 support@supplyshift.net Contact Form Support

Let's Talk

Supply Chain Management

4 Elements of a Successful Supply Chain Transparency Strategy

03 / 01 / 2018
author portrait
Alex Gershenson
Share

As corporate priorities evolve, large enterprises have realized that supply chain transparency is not only a critical aspect of brand image, but is also of paramount importance for the bottom line. However, achieving transparency at first appears to be a daunting task, as most companies have little to no visibility of their supply chains beyond their direct suppliers.

As a global business, how can you systematically and successfully achieve transparency within your own network? We have helped numerous Fortune 500 companies, certification bodies, and commodity traders understand the who of their supply chains (traceability to the source) and the what of their suppliers (what are the policies, practices, and quantitative attributes of all the suppliers in the supply chain). With this, companies can engage with their suppliers and improve responsible sourcing strategies. We wanted to share some of the key elements we have seen work in different supply chain transparency efforts.

Transparency is more than just being able to see further into a supply chain. It involves seeing where your efforts are falling off, getting a deeper understanding of the data flowing in, prioritizing supplier collaboration, and ultimately, sharing the process with stakeholders in a way that makes sense for your organization.

1. Multi-Tier Visibility: Getting to the Who

A comprehensive sourcing strategy can’t get off of the ground without an understanding of where materials are coming from beyond the primary tier. Consumers want to know the origins of products and services, and there is virtually no way of truly understanding risk hotspots without knowing where and how your sub-tier suppliers are operating. Companies struggle to obtain this information using traditional means, most commonly email and Excel questionnaires, which require a substantial investment of time and effort for data collection, supplier reminders, and information consolidation. SupplyShift embodies the technology that greatly simplifies the pain points, and reduces the efforts involved.

Suppliers want to easily forward surveys along their usual channels, but many are stuck using internal procurement systems that make this process difficult, so they are forced to run the gamut of emails and “dead” surveys time and time again. SupplyShift is already managing the exchange of multi-tier information. Suppliers can send assessments to all of their suppliers with the click of a button, and responses throughout the chain will roll up into an aggregate without having to juggle dozens of workbooks. The necessity to understand your suppliers at every tier is the core element in supply chain transparency. Next, is understanding the data.

2. Deeper Analysis: Understanding the What

Companies running manual analysis on supply chain data are in the early stages of their transparency efforts. A recent Hackett Group study has found that while 94% of organizations see how critical digitized analytics are, less than half of them actually have a strategy ready to generate them. Even if they were able to collect every data point within their network, they wouldn’t be able to achieve any systematic, real-time insight without a digital approach. Frequently, customers come to us with lots of excel spreadsheets, and at the same time, virtually no visibility into their supply chains.

Manual analysis can sometimes shed light on glaring areas of risk or non-compliance, but that’s only scratching the surface. Transparency requires the ability to navigate your data network with ease and extract the information needed to achieve your goals. The shift to smarter, more dynamic tools will continue to move the needle toward greater global supply chain transparency and data availability.

3. Suppliers as partners: Engage

Frequently, supply chain assessments are a one-way street. Because large buyers often have complex reporting requirements to satisfy, they structure surveys in terms that often make responding difficult for their suppliers. Buyer time is spent generating a one-time report instead of on a productive, long-term plan. Success and longevity are much more likely with strategies that treat first-tier suppliers as partners who help implement plans, collect data, and relay standards forward.

A productive engagement strategy helps establish this kind of partnership. By reaching out to your suppliers, communicating expectations, offering to help fix pain points, and cooperating, you contribute to a relationship rooted in mutual improvement and transparency. This type of relationship with your suppliers, where they share your goals and work to see them achieved upstream, is essential to successful transparency efforts. This critical element is often dropped from supplier assessment programs due to perceived large time requirement for meaningful feedback loops. With the right technology solutions, feedback loops and corrective actions should be natural and easy to implement in any supply chain transparency strategy.

4. Information Sharing: Drive Improvement

Transparency strategies that place an emphasis on information sharing will see tangible results. Whether it’s internally, with suppliers, or with the public, sharing outcomes or progress toward initiatives will contribute to a more cohesive and informed supply network. Suppliers want to know what their customers are doing with their data, and consumers want to keep track of which commitments are being met. Being transparent with information helps move your company towards a better, more compliant supply chain overall, and your customers will increase their trust in your brand. Engagement with all stakeholders through rapid and meaningful information sharing not only communicates your progress, but also drives improvement within your supply chain.

Companies of all sizes are recognizing the importance of communication of supply chain information both internally, as well as to the public. A few days ago, Unilever announced that  they are publicly disclosing all of their palm oil plantations, a contentious commodity with substantial potential environmental risks. When stakeholders know corporate priorities, and they are clearly communicated, the resulting products are more valued, more responsible, and more profitable.

As the transparent supply chain becomes a new standard for global business networks, it’s important to know how you can best achieve it in your own network. Incorporating these elements into a focused plan of action, and using technologies purpose-built for the job, will help facilitate an efficient, effective, and lasting transparency approach.

Share
Alex Gershenson

author portrait

Related Posts

Prev Slide
Labor & Human Rights
Complying with the UFLPA: How to Detect ..
Read More
Complying with the UFLPA: How to Detect Forced Labor in Your Supply Chain
Industry Trends
What Does Supplier Collaboration Mean fo..
Read More
What Does Supplier Collaboration Mean for Sustainability?
Deforestation
Addressing Deforestation in the Supply C..
Read More
Addressing Deforestation in the Supply Chain
Industry Trends
What To Do About Low Sustainability Perf..
Read More
What To Do About Low Sustainability Performers
Labor & Human Rights
Addressing Labor Issues in the Supply Ch..
Read More
Addressing Labor Issues in the Supply Chain
Industry Trends,Supply Chain Management
Supply Chain Mapping – Why and How?
Read More
Supply Chain Mapping – Why and How?
Industry Trends,Marketing
Beyond Annual Reports: Three Ways to Lev..
Read More
Beyond Annual Reports: Three Ways to Leverage Supplier Sustainability Information for Your Business
Industry Trends,Supply Chain Management
Creating Your Roadmap for Supplier Susta..
Read More
Creating Your Roadmap for Supplier Sustainability Improvement
Industry Trends,Supply Chain Management
Summit ’21 – Five Key Learni..
Read More
Summit ’21 – Five Key Learnings for your Supply Chain Sustainability Journey
Supply Chain Management
Simplifying Sustainability for Procureme..
Read More
Simplifying Sustainability for Procurement
Industry Trends,Supply Chain Management
Your Complete Guide to Supply Chain Sust..
Read More
Your Complete Guide to Supply Chain Sustainability
Supply Chain Management
How Suppliers Demonstrate Best Practices..
Read More
How Suppliers Demonstrate Best Practices to Buyers
Supply Chain Management
How Remote Assessments Can Reduce Audit ..
Read More
How Remote Assessments Can Reduce Audit Costs
Supply Chain Management
Supplier Engagement Best Practices ̵..
Read More
Supplier Engagement Best Practices – Key Takeaways From Our Webinar
Industry Trends,Supply Chain Management
Tackling Plastics and Packaging in Suppl..
Read More
Tackling Plastics and Packaging in Supply Chains
Supply Chain Management
Best Practices for Sending Supplier Sust..
Read More
Best Practices for Sending Supplier Sustainability Assessments
Supply Chain Management
Maximizing Supplier Participation in Sus..
Read More
Maximizing Supplier Participation in Sustainability Reporting
Supply Chain Management
Roadmap of Industry Groups – Your Comp..
Read More
Roadmap of Industry Groups – Your Complete Guide to Supply Chain Sustainability Collaboration
Industry Trends,Supply Chain Management
Advancing Diversity, Equity, and Inclusi..
Read More
Advancing Diversity, Equity, and Inclusion in Your Supply Chain
Supply Chain Management
How to Identify Your Supply Chain Sustai..
Read More
How to Identify Your Supply Chain Sustainability Risks and Opportunities
Supply Chain Management
How to Approach Multi-Tier Supplier Asse..
Read More
How to Approach Multi-Tier Supplier Assessments
Supply Chain Management
What is Multi-Tier and Why to Do It
Read More
What is Multi-Tier and Why to Do It
Industry Trends,Supply Chain Management
How to Set Corporate Goals for Supply Ch..
Read More
How to Set Corporate Goals for Supply Chain ESG
Industry Trends
How Industry Group Collaboration Drives ..
Read More
How Industry Group Collaboration Drives Sustainability Improvement
Industry Trends
ESG in the Public and Private Market: Pu..
Read More
ESG in the Public and Private Market: Putting the Supply Chain in Focus
Climate,Industry Trends
Supply Chain Emissions 2021 – Key ..
Read More
Supply Chain Emissions 2021 – Key Takeaways from our Webinar
Industry Trends,Supply Chain Management
Why Sustainable Supply Chains?
Read More
Why Sustainable Supply Chains?
Climate,Industry Trends
The Importance of Measuring Scope 3 Supp..
Read More
The Importance of Measuring Scope 3 Supply Chain Emissions and How to Get Started
Industry Trends,Supply Chain Management
Active Vs. Passive Supplier Sustainabili..
Read More
Active Vs. Passive Supplier Sustainability Assessments
Industry Trends,Supply Chain Management
Supplier Sustainability Assessment ─ W..
Read More
Supplier Sustainability Assessment ─ Where Do I Start?
Industry Trends,Labor & Human Rights
Forced labor in cotton supply chains ─..
Read More
Forced labor in cotton supply chains ─ Key takeaways from our webinar
Industry Trends,Supply Chain Management
Three Ways Procurement Can Drive Sustain..
Read More
Three Ways Procurement Can Drive Sustainability Through the Supply Chain
Industry Trends,Supply Chain Management
How to prepare for a transparent supply ..
Read More
How to prepare for a transparent supply chain in 2021
Climate,Industry Trends,Supply Chain Management
The emerging shape of recovery
Read More
The emerging shape of recovery
Climate,Industry Trends
Supply chain emissions: what challenges ..
Read More
Supply chain emissions: what challenges lie ahead?
Industry Trends,Supply Chain Management
Transparency is the first step to securi..
Read More
Transparency is the first step to securing global supply chains
Industry Trends,Supply Chain Management
How standardization advances supply chai..
Read More
How standardization advances supply chain responsibility
Responsible Holidays
Retail sustainability during the holiday..
Read More
Retail sustainability during the holidays
Climate
Global Climate Strike and how to achieve..
Read More
Global Climate Strike and how to achieve your Science-Based Targets
Industry Trends,Supply Chain Management
Blockchain for Responsible Sourcing – ..
Read More
Blockchain for Responsible Sourcing – Where Does It Fit?
Labor & Human Rights,Supply Chain Management
Worker Insights to Drive Action: How to ..
Read More
Worker Insights to Drive Action: How to Operationalize Worker Voice Using Technology
Labor & Human Rights,Supply Chain Management
When Worker Voice is Next on the Agenda
Read More
When Worker Voice is Next on the Agenda
Labor & Human Rights,Supply Chain Management
When Worker Voice is Only a Whisper
Read More
When Worker Voice is Only a Whisper
Industry Trends,Labor & Human Rights
How Businesses Can Address Modern Slaver..
Read More
How Businesses Can Address Modern Slavery in Supply Chains
Industry Trends,Marketing
The Sustainable CMO: 3 Values for Market..
Read More
The Sustainable CMO: 3 Values for Marketing Leadership
Responsible Holidays
Good News for Holiday Coffee Lovers — ..
Read More
Good News for Holiday Coffee Lovers — More Investment in Responsible Coffee Supply Chains
Industry Trends,Supply Chain Management
You Can’t ‘Contract Away’ Supply C..
Read More
You Can’t ‘Contract Away’ Supply Chain Problems
Responsible Holidays
Is Your Halloween Candy Responsibly Sour..
Read More
Is Your Halloween Candy Responsibly Sourced?
Supply Chain Management
Moving Beyond Spreadsheets for Responsib..
Read More
Moving Beyond Spreadsheets for Responsible Supply Chains
Deforestation,Supply Chain Management
Effective Traceability for Responsible P..
Read More
Effective Traceability for Responsible Pulp, Paper, & Packaging
Supply Chain Management
4 Elements of a Successful Supply Chain ..
Read More
4 Elements of a Successful Supply Chain Transparency Strategy
Supply Chain Management
From the Farmer to the Foil: The Cacao S..
Read More
From the Farmer to the Foil: The Cacao Supply Chain Challenge
Industry Trends,Supply Chain Management
Responsible sourcing as part of corporat..
Read More
Responsible sourcing as part of corporate governance
Deforestation,Responsible Holidays
What’s in a Box: Creating More Respons..
Read More
What’s in a Box: Creating More Responsible Holidays!
Next Slide
SupplyShift Logo SupplyShift
Terms of Use
/
Privacy Policy
Stay in the Know
How It Works
Product Overview Starter Assessments Standard Assessments Custom Assessments See A Demo
Solutions
Industries
Beauty & Personal Care High Tech & Electronics Pharmaceuticals Food & Beverage Apparel Retail
Issues
Climate Change Impact ESG Investing Modern Slavery COVID-19 Deforestation Diversity Plastics
Pricing
Insights
News Blog
Resources
Analyst Report Success Stories Webinars White Papers
About Us
Alliances Our Mission & Story Our Values and Team Careers Contact Us
Contact
215 River Street Santa Cruz, CA 95060 415.935.1697 +44 2045 251266 support@supplyshift.net Contact Form Support
All materials © SupplyShift 2022
/
All rights reserved
/
Designed by Sleepless