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Transparent Supply Chain – Consumers are always curious to know as to how a company makes their favorite products and shows an instant liking to a good product. Thanks to online shopping, consumers these days have many choices. So much so, that they will only spend their money on products or services of a company that shares their same values or vision. 

4 Ways to Achieve a transparent Supply Chain Management

This is why having a transparent supply chain is important. 

Why investing in supply chain transparency is important

There is lots of talk about the sustainability of the supply chain, and both small and large enterprises are doing their part to preserve the natural resources and reduce the negative effects on the environment. Some of the companies reduce the use of water and energy and make an investment in storage materials that are reusable or those that can be recycled. However, these will not make a difference to your consumers if your consumers are not aware them. 

With the help of supply chain transparency, you can share the back story of how the products are made with the people to whom the products are being sold. This holds true even when you are considering sustainability and it is a work in progress. By informing your customers, you can ensure them that you take these things seriously.

Some of the things that can be shared with customers are the trade practices followed, how fairly the employees are being paid, the work culture, and so on. By investing both time and money in such programs, businesses can win consumers who share similar beliefs. 

According to a recent study, it is said that the attitude of the consumers is changing drastically. 

– More than 60% of Americans and Canadians hope that the businesses/corporate will work towards environmental or social change.

– More than 75% of the citizens hope companies will pay attention to or address important justice or social issues.

– More than 85% of the people prefer buying a product from a company that has advocated for an issue they believed in, and they can even refuse to buy a product when they know that the company has supported a problem they do not believe in. 

The above-mentioned points are to be kept in mind when trying to achieve transparent supply chain management. But how can you achieve it? Let’s look at it in detail:

Always partner with suppliers who are transparent or sustainable

Remember that a company or business is only as good as its suppliers. You cannot choose a supplier who does not share the same values or goals. If you are planning to focus on achieving a transparent supply chain, the information about your suppliers needs to be shared with the customers. Therefore, you must have a clear understanding of how the products or raw materials are sourced and supplied. 

If any of your suppliers do not follow the same path when it comes to sustainability, you can either educate them to correct such issues or find another supplier. Make sure to choose a supplier who can share the information so that it can be made public. 

Track the source of the materials or the ingredients

It’s important for a business to know the source of the raw materials that are being sourced from suppliers for making their products. Even the basic details like how they are harvested or the working conditions of the labor are to be paid attention to. This is of utmost importance for businesses in the food industry as they need to find out if there are any harmful chemicals used, or if the materials used for supplying can be recycled. 

Clear communication

When we talk about transparency, we are talking about sharing information. Both you along with your partners and suppliers should be able to share the information with the consumers. If a consumer has a question about a product or its origin, the supplier or you should be able to answer it. 

Businesses can use various methods to communicate with consumers such as an email or a social media platform – it is important to never ignore questions or criticisms. Always keep the lines of communication open and be honest as to what you are communicating. Companies can share information with the public using their social media platforms , or by issuing a press release. 

Storing the data about supply chain

A transparent supply chain is hard to achieve if you fail to monitor the operations or do not collect the data on how the products are made, stored, and delivered. Tasks such as these can be easily handled with the use of effective supply chain management software. The software collects all the data about the suppliers, the warehouses, and more, and the information collected can be passed on to the public as and when required.

The use of supply chain management software automates the process of data collection and saves both time and energy. 

Conclusion

By achieving a transparent supply chain, businesses can prove to their consumers that they are not hiding anything, and this not only builds trust but increases brand reputation as well. Consumers will make a choice in your favor when they compare your products with those from your competitor.

So make sure you choose the supply chain management software that completely supports what you believe in, and collects all the needed data to achieve your goals.