Supply chain transparency is not going away
Consumers want to know where the products they buy come from. Companies will have to disclose more supply chain information than ever before as consumer pressure and regulations increase.
While the demand for transparency in the supply chain increases, most companies are unaware of labor practices, product material contents and/or potential risks past their direct suppliers. Supply chains, in reality, are ten times the number of direct suppliers and require sophisticated data management to be properly maintained.
Among many pieces of potential supply chain data, regulations in particular require detailed supply chain information to be collected and maintained.
The most prevalent regulations affecting the supply chain are Dodd-Frank 1502 (Conflict Minerals Rule), Foreign Corrupt Practices Act (FCPA), Restriction of Hazardous Substances (RoHS), Registration, evaluation, authorisation and restriction of chemicals (REACH), Supply Chain Transparency Act (SB657), United Kingdom Modern Slavery Act and CA Prop 65.
Supply chain regulations do not appear to be decreasing either. Right now, talks about managing and regulating “conflict minerals” in the European Union (EU) as well as monitoring trafficking and slavery in the United States are underway.
With so many regulations and supply chain data to manage, companies experience a number of challenges including international supply chains, multiple languages, many suppliers that exist in multiple tiers of their supply chain and a constantly changing profile of products and suppliers.