Reflection on the issue of supply chain traceability

Supply chain traceability, a prerequisite for a sustainable future

If today there is some confusion about the term to use between "sustainable development", "social responsibility", "ESG" or "sustainability", we can agree on the need to take action and ensure the sustainability of our natural resources, for us and for future generations.

According to Louis Roy, President and Founder of Optel, businesses have a major role to play as they consume most of these resources for our consumption needs. During an exchange we had with him as part of Umalia's 10th anniversary, Louis explains his vision of the role of the private sector, but also of communities and decision-makers, in this struggle which, according to him, is becoming an inescapable opportunity for these businesses to seize.

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Resource depletion is at the heart of the problem

To the question of what are the current issues that businesses are facing (regarding their supply chain) and how they organize themselves, Louis draws a conclusion of drastic decrease of resources in the face of an increasing pressure on them, as a direct result of an increase of consumption. In this eye of the storm in which we are all caught, including future generations, these "collective goods", for lack of serious measures to regulate supply chains, burn instantly, as they are consumed without respect or planning. And beyond the extinction or depletion of these resources, the vicious circle of poverty is reinforced and will be further reinforced. Louis points out, for example, that if we want to have cheaper and cheaper telephones, there will always be human exploitation somewhere (such as child labor in the Democratic Republic of Congo) with, as a corollary, a perpetuation of misery.?

Worse, he notes, as the populations of the countries of the South hosting the great majority of these "collective goods" suffer, they seek and will continue to seek by all means to flee, to leave, thus feeding the distressing spectacle of migrants with its batch of shipwrecks exposed daily to our eyes.

And that, he says, is the whole point of resource sustainability, community development and sustainable business prosperity.

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The paralyzing fear of the reality of our own supply chain

Faced with this situation, Louis deplores the fact that, in order to ease their conscience, businesses tend to try to help countries through donations or isolated charitable actions in order to protect their supply chain rather than addressing the problems head on.

Making donations in kind or in cash brings a good conscience! Thus, we voluntarily close our eyes as if not to realize the disaster in progress. In this sense, explains our guest, businesses sometimes mention that they are afraid of what they will discover at the end of the supply chain. What is behind my supply? Maybe there are children in need, a chemical spill or some other human or environmental disaster. It's all behind a smartphone or any other product in our daily lives," he laments.

"If there are still people living in misery, it's almost a corporate problem because it's the result of a company operating here or there."

This introspection represents a risk and many organizations prefer to keep the comfort of ignorance rather than to consider profound changes in the way they do things. Why do they tolerate this ignorance? Louis reminds us that in the Democratic Republic of the Congo, if people received their fair share of work and had better health, safety and living conditions, it would raise the price of the phone down the line, a price that neither businesses nor consumers are willing to pay.

And yet this situation cannot continue because for our own survival, we will have to change course.

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The challenge of making this transition "at the right time”

Louis believes that the solution to this situation requires the commitment of all: communities, policy makers, local authorities, investors, businesses... To this end, he suggests that addressing the problem of decarbonization and equity along supply chains would be most beneficial to improve the quality of life of all humans. He thus emphasizes traceability along value chains. Louis believes in the ability of human beings to find solutions, but they must be willing to see the problems and ask themselves the real questions. This is not a comfortable situation for businesses and it is an awareness where everyone goes at his own pace.

For communities, the challenge is to see the link between their consumption and the possibility of a sustainable world for their children. It's going to be a sacrifice, a difficult step and a major change," he says. But we have to do it to preserve our children's future. In this light, when the link between consumer products and the future is made, communities and consumers will mobilize to save these resources and thus indirectly put pressure on businesses.

These organizations will have to adjust to the realities of the systems in place. Consumer pressure, Louis believes, will make businesses that move more interesting, especially for young people, both as consumers and employees. For Louis, it's not a matter of rushing to revolutionize the models, but rather of being aware of the issues at stake because the movement is now irreversible.

"Businesses that get involved early need to know that they are clearing the path but also getting ahead of the curve."

It can be an advantage to be an unavoidable pioneer in the adoption of change. But it can also be a disadvantage because you may find yourself alone in an approach that other businesses are not yet on board with. This variable-speed commitment distorts the competition for a while. For Louis, getting involved therefore requires a certain level of critical mass for the movement to be viable. Louis notes that currently, more and more businesses are getting engaged and that they have better support than before (financing, stakeholder engagement, consulting firms, etc.). He feels that if his company Optel would have committed to sustainability today, he would have more support than he did at the time of his initial engagement.

Our guest knows that things will not necessarily be easy, which is why he advocates a transition facilitated by regulations that must be driven by governments.

Here again, things are not and will not be easy because between ignorance of these issues and crisis of confidence in institutions, the voter is sometimes powerless.

"The world wants change but without change, because change is complicated. They're waiting for the government to make changes, but no one trusts the government and no one votes for a government that will make those changes."

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Supply chain traceability is no longer an option

Given the current state of natural resources and the threat of their depletion, it is urgent, according to our guest, whatever the constraints, to take measures for the traceability of raw materials and more globally of supply chains because without this, there will never be control and without control, no future for communities, businesses or governments. Raw materials will run out, that is a fact. Regulating them will undoubtedly improve the working and living conditions of communities. And the better the people live, the better the authorities govern and the better the businesses conduct their organization. We are no longer in an economy of managing abundance but managing scarcity, and this will necessarily change the rules.

What is important, Louis reaffirms, is the traceability and transparency of supply chains and this is what he has built his company Optel on. It is now necessary to add decarbonation and social impact criteria to these traced data.

In order to bring about change, in addition to community and consumer pressure, even though he knows that some consumers will always seek to buy cheap products, Louis believes that policy makers must promote responsible business through enforceable measures and good regulation. In this way, businesses will be required to take concrete and measured actions and to be transparent, otherwise an intolerable dishonest competitiveness will set in.

This whole process requires, according to him, collaborations and associations between the various actors (communities, businesses, decision-makers, etc...) within the supply chains. This will lead to rethinking the current state of our resources and systems.

"The time to act is now, we can’t wait for young people who have other generational issues. And to be honest," Louis continues with emotion, "if we continue like this, there is no future for children. As a parent, it gives us hope to do something to ensure our children's future, to take action so we don't get consumed by anxiety. If that doesn't make us rethink things, what can?"

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Louis Roy in a few words

Louis is an entrepreneur who describes his company, Optel, as the realization of his personal mission. Early on in his childhood, the need to understand the world around him, particularly the world of technology, made him realize that he was an "engineer at heart". Having grown up with his family in several countries, particularly in Africa, he quickly made the connection between inequality and economic and corporate systems. By enabling companies to collect and model data from their value chain, regardless of their sector, he puts his expertise at the service of his values. For him, traceability, respect for stakeholders as well as carbon footprint measurement and reduction are all levers for businesses to reconnect with our reality as human beings.

Written by Hyppolite DANSOU and Delphine Orfila