The 3 Supply Chain Visibility Building Blocks (Part 2)
Leandro Oliveira
Executive Director & Thought Leader | Supply Chain Strategy | Digital Transformation & Industry 4.0 | IoT | Product Serialization & Traceability | Mentor | Change Management
In the first part of this article, I explained the general context of the Supply Chain Visibility maturity model, as well as described the meaning of Supply Chain Mapping and Supply Chain Traceability. Let’s now look into the third and final component.
3. Transparency
Transparency is the consumer-centric component of the Supply Chain Visibility maturity model. Transparency refers to disclosing quality information, a natural outcome of Mapping and Traceability, in a format and layout that is relevant from a consumer perspective.
The engagement with consumers can happen via the product itself, typically containing a bridge between the physical and the digital worlds. This bridge can be a QR code, a smart sensor (e.g., Bluetooth, RFID, NFC, etc.), and the digital world can be an app, a website, or even a menu where the consumer can navigate and have a personalized experience with the brand, using the product purchased and a smart phone, for example.
Brands can explore different use cases and forms of engagement with consumers, involving raw materials provenance and sustainability, waste prevention and recyclability, loyalty programs and marketing campaigns, recall alerts, anti-counterfeiting initiatives, and many more, the sky is the limit!
Conclusion
Many executives understand Transparency and the importance of engaging with consumers, as a vital goal for any business. But only a few understand the more comprehensive perspective about what this Supply Chain Visibility maturity model really is.
I have seen recent case studies of multinational companies claiming they have implemented solutions and use cases related to Transparency, but they still lack solid Traceability information, details about product and components’ movements throughout the chain, and documented evidences to back their claims up. It is easy to say that a tennis shoe, or a fashion accessory has recycled raw materials in its composition, without telling the consumers their exact percentages, how the progression of such recycled components are growing over time, how and where exactly they are sourced from, and so on.
Companies are enticed to jump into the Transparency use cases due to the short term possible marketing and sales results, but on the other hand, consumers are becoming more conscious about the products they purchase, about the reputation of the brands they interact with, and more demanding in terms of evidences and information details that could be provided by the brands.
Don’t be fooled, a robust Supply Chain Visibility strategy doesn’t start with Transparency, it has to go through the Mapping and the Traceability first. The journey is not easy, there is no shortcut, but in the long run it will bring success and longevity for the Brand. Would you agree?