Globally, supply chains are constantly undergoing transformation, and many companies are moving towards increased transparency and traceability. Yet many supply chains are still lacking in basic governance and traceability.
Is this the fault of companies? Or do we simply lack the technology to trace supply chain processes?
Supply chain management and why it’s important
We have a basic grasp of where the problems exist in our supply chains: in sourcing, in unethical labour, and in fraud. We know when there are issues; however, many companies simply lack the ability to pinpoint the issues, given the vast nature of supply chains.
There are a myriad of different types of supply chain management (SCM) software out there. However, many fail to meet expectations, and child labour, conflict and poor human rights seep into the supply chain.
Supply chain tracking is important not only to monitor a company’s ethical impact (avoiding child labour, promoting positive working conditions and human rights, and so on) and to save costs, but also to mitigate its environmental impact.
Company’s supply chains account for 80 percent of their greenhouse-gas as well as more than 90 percent of their impact on air, land, water, biodiversity and geological resources. This is why it’s a necessity for businesses to monitor and manage their environmental impact.
How we can tackle the problem
The supply chain problem calls for companies to embrace advanced technology to further their supply chain management. Effective supply chain tracking has, historically, been an afterthought – it’s great to have and advertise, but really just a bonus.
In today’s climate, supply chain tracking has become a necessity.
Many consumers will not purchase from companies who do not trace their supply chains or who have a history of abuse, negligence and inhumane working conditions in their sourcing. There’s also an increasing movement towards having a positive, sustainable impact on the environment (seen in initiatives such as Apple’s Salmon Gold and Walmart’s intervention into its own supply chain.)
The supply chain problem will require a combination of technologies such as artificial intelligence and blockchain, combined with a global interest in how we responsibly source and how our supply chains function.
Blockhead is making moves towards more traceable supply chains with our blockchain-backed platform, STAMP Supply. STAMP Supply traces your supply chain beginning-to-end and displays your data for you through a dashboard and graphs. Want to find out more? Click here.