Customers expect more transparency from brands than ever before, want to know where their stuff is coming from and ensure their values are being reflected in a brands practice. As marketers, it is important that we create transparency within our supply chains.
A Transparent Supply Chain
It is important to first note what a transparent supply chain looks like. Traditional supply chains have been guarded by brands out of fear of losing their edge, disclosing limited information about the origin of raw materials and the working conditions of their facilities. Today, consumers want to know where the ingredients to their favorite product came from and how it has been processed. This means brands must not only monitor and report the conditions within their own facilities, but also their upstream counterparts.
Why Transparency?
While the main force driving transparency comes from consumer demand, it can also benefit brands. Sharing data at every step of a supply chain can help stakeholders reduce operational costs by identifying and correcting weak points in a system. Transparent systems also improve an brands reputation, while increasing profits and productivity.
Consumers want to know how their favorite brands operate and the working conditions of their employees. Brands, therefore, must be transparent in their sourcing and distribution to maintain customer loyalty.