A Guide for Developing Resilient and Transparent Supply Chains

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    A-Guide-for-Developing-Resilient-and-Transparent-Supply-Chains
    A-Guide-for-Developing-Resilient-and-Transparent-Supply-Chains

    Businesses across all industries are exploring opportunities to develop transparent and resilient supply chains to reduce the impact on the earth and improve the ROI of their distribution chains.

    Decision-makers must develop inclusive, resilient, transparent, and sustainable supply chains. Inclusive supply chains offer value for the people and partners working on them through safe and fair employment practices and better access to required products and services. Moreover, embracing inclusivity in the supply chain will thoughtfully engage workers and invest in them to improve their performance. Ingraining resiliency in the supply chain will help them to be resilient during a disruptive market.

    To design and develop inclusive, resilient, and transparent supply chains, enterprises should consider integrated strategies to achieve sustainability. Businesses should concentrate on key impacts and incorporate supply chain sustainability tenets in the enterprise to strengthen engagement with suppliers and encourage better transparency and traceability. Many business leaders ponder the question of Why optimizing their supply chain is critical for 2023? During a discussion about ways to improve supply chain transparency, resiliency, and traceability, Enterprise Talk asked the same question Mesbah Sabur, the founder of Circularise.

    Mesbah Sabur, the founder of Circularise.“With global supply chain disruptions on the rise due to natural disasters, political instability, an economic downturn, and pandemic-related issues, optimizing the supply chain is necessary to help companies build resilience and prepare for future shocks.Rooting out inefficiencies is particularly critical this year to reduce costs and increase customer satisfaction in an uncertain operating market and unpredictable global climate. But by streamlining supply chain operations, businesses can respond more quickly to changing market demands and economic situations,” says Mesbah Sabur, the founder of Circularise.

    Supply Chain Leaders Should Focus on Key Impacts

    Organizations that aim to improve the efficiency of their programs should embrace a targeted strategy to supply chain sustainability by concentrating on a particular category, product, or “root-cause” challenges.

    Many enterprises should concentrate on root causes and avoid broad-based social and environmental audits. During the assembly and manufacturing stage, organizations should focus on challenges related to factory environments like overtime, health and safety, women’s resources, increasing safety, and waste-water treatment.

    Also Read: Must-Have Supply Chain Compliance Policies

    Leveraging AI and Blockchain to Increase Transparency Between Supply Chain Operators

    Leveraging AI and Blockchain can increase transparency between supply chain operators by providing more visibility into every stage of the supply chain, from raw materials to finished products. AI can help companies analyze large amounts of data, while Blockchain can provide an immutable record of every transaction along the supply chain. By combining these technologies, companies can improve their supply chain traceability, increase operational efficiency, and boost trust between supply chain partners.

    How can Businesses Leverage Technology to Help Improve Supply Chain Traceability?

    Supply chain business leaders must focus on integrating the latest technology in their tech stack to monitor the entire process, from procuring raw materials to delivering products to the end client.

    “Technology can improve traceability by providing tools to track products and assets throughout the supply chain. For example, radiofrequency identification (RFID) tags and barcodes can help companies track items as they move through different supply chain stages. At the same time, IoT sensors can monitor conditions like temperature and humidity to ensure that products are stored and transported correctly. Cloud-based or Blockchain-based platforms can securely store and share data between different supply chain partners, making it easier to collaborate and identify areas of inefficiency,” adds Mesbah.

    Integrating RFID tags and barcodes help retailer and supply chain partners to keep track of the inventory and its position. One area that companies should look into in particular is digital product passports based on the use of public Blockchain technology. This technology allows for secure and transparent communication between supply chain partners, which enables better operational efficiency. Such a system also enables the creation of a digital record that tracks a product’s journey through the supply chain, providing information about its origin, manufacturing process, and the surrounding environmental conditions to all relevant parties.

    “Public Blockchain technology ensures the information is tamper-proof and accessible to all supply chain partners in real-time. This can lead to improved collaboration and communication between partners, ultimately leading to a more efficient and sustainable supply chain. Overall, this technology can help companies to achieve greater visibility of their supply chain operations, leading to improved efficiency, reduced waste, and increased customer satisfaction,” adds Mesbah.

    Strengthen the Supplier and Vendor Engagement

    Irrespective of the immense technological advancements, many organizations depend on a code of conduct, risk assessment, audit, and follow-up strategy to manage their supply chain. Businesses are now focusing on improving results by optimizing their current programs. Decision makers need to strengthen their supplier and vendor relationships to increase transparency and resilience in their supply chain.

    As well integrated supply chain should have all the vendors, partners, and suppliers in alignment to achieve one goal. Training vendor partners and enforcing the best practices throughout the supply chain are strategies to improve resilience and transparency.

    Also Read: Best Supply Chain Management Strategies

    Enhance Supply Chain Resiliency, Transparency, and Traceability

    All the resources and partners involved in a supply chain should be well informed about their products, like where they come from and under what conditions they were made. Hence transparency and traceability of supply chains with multiple suppliers are essential and challenging. Organizations that want to improve transparency and traceability should procure the products. There are only two ways that supply chain leaders can improve their transparency and traceability.

    First is integrating the latest technologies on their supply chain tech stack. And the second option is to strengthen the supplier and vendor relationships. Decision-makers can consider this guide to develop a sustainable supply chain that is resilient and transparent.

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