4 Reasons for Having a Transparent Food Supply Chain
You might not be comfortable with transparency because you’re concerned somebody else might take advantage of the great supplier you’ve had such a hard time finding, or because you’re worried you might uncover issues you don’t know how to overcome. Well there's no need to worry any longer.
In this article, Transparency-One drill down into 4 reasons why you should have transparency in your food supply chain.
Modern slavery is an appalling crime that damages countless people’s lives According to the International Labour Organization, 20.9 million people are victims of forced labor globally. Furthermore, it is estimated that this illegal industry generates $150 billion in profits per year. Fortunately, countries like Canada and Australia already have laws addressing forced labor goods and more countries are following in their footsteps. UK and US regulation is putting more pressure on brands to get in control of their supply chain, and in particular fighting modern slavery.
Supply chains are now so complex that it’s hard to be sure that none of your Tier 2 suppliers keep workers in unacceptable conditions, or that none of your suppliers sources materials from facilities with a negative environmental impact. Many NGOs and watchdogs are out there investigating in high-risk countries, and may discover that you are somehow connected to an undesirable supplier—before you are even aware. In situations like this, ignorance is a liability, highlighting once again how important transparency is in your food supply chain.
3. Best practices enforcement
In a supply chain where information only flows one level up and one level down, brands can’t influence upstream suppliers to improve their practices. If you were to share and enforce best practices throughout the supply chain you could improve product quality, and even costs. improve.
Nowadays consumers are becoming increasingly conscious about how their food is sourced and produced. So, transparency can be good for business. Knowing who makes your materials and where, being in better touch with your supply chain, means you can understand it more clearly and make more informed business decisions. Furthermore, you can share this information with your consumer. Being transparent also creates the opportunity for collaborative action between companies, governments, NGOs, unions and the public. For example, a NGO recently published a study about how women strawberry workers in Morocco were empowered through training and literary classes. You could share this information with your suppliers and encourage them to empower their workers in a similar way.