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According to a survey, only 6% of companies have full visibility into their supply chains. For those aiming to embrace sustainability but unsure of the initial steps, focusing on traceability and visibility can be a wise starting point.
Real time visibility
Be it Sea Freight or Air Freight, real-time visibility enables businesses to monitor their supply chain activities in real time, providing immediate insights into inventory levels, shipment status and potential disruptions. This level of transparency allows for proactive decision-making, ensuring that operations run smoothly and efficiently.
Traceability
Traceability, on the other hand, ensures that every product can be traced back through each step of the supply chain management, from raw materials to the end consumer. This is essential for quality control, safety and compliance with regulations. Furthermore, traceability is pivotal for sustainability as it ensures transparency and accountability. It enables companies to verify the ethical sourcing of materials and monitor the environmental impact of their products. By tracing the journey of a product from its origin to the end consumer, businesses can identify areas for improvement in sustainability practices, reduce waste, and ensure compliance with environmental regulations.
It comes with its own challenges
- High Implementation Costs: The initial investment required for technology and infrastructure can be prohibitive, especially for smaller businesses.
- Complexity and Integration Challenges: Integrating new technologies with existing systems can be complex, leading to potential disruptions and a steep learning curve.
- Data Privacy and Security Concerns: Collecting and storing large amounts of data increases the risk of breaches, which can have serious consequences for privacy and security.
- Dependency on Technology: Reliance on technology means that technical failures can disrupt the entire supply chain, leading to delays and increased costs.
But the benefits are more
- Enhanced Operational Efficiency: Real-time visibility allows businesses to monitor their supply chain activities in real time, leading to smoother operations and faster adaptation to changes.
- Improved Quality Control and Safety: Traceability ensures that every product in transportation can be traced back through each step of the supply chain, enhancing quality control, safety, and compliance with regulations.
- Increased Sustainability: By enabling transparency and accountability, traceability helps companies verify the ethical sourcing of materials and monitor the environmental impact of their products, leading to more sustainable practices.
- Better Risk Management: Real-time visibility into the supply chain allows companies to proactively identify and mitigate potential disruptions, reducing risks and minimising losses.
- Greater Consumer Trust: Demonstrating a commitment to transparency and responsible practices through visibility and traceability builds trust with consumers and stakeholders, enhancing the company’s reputation and competitive advantage.
By integrating advanced technologies such as IoT sensors, blockchain, and AI, businesses can achieve a new level of visibility and traceability in their logistics and supply chains. This not only enhances supply chain management efficiency but also builds trust with consumers and stakeholders by demonstrating a commitment to transparency and responsible practices. Embracing these elements can lead to improved performance, reduced risks, and a stronger, more resilient supply chain.
