Achieving supply chain transparency
Supply chain transparency is essential for sourcing responsibly and tackling issues. A company must understand their whole supply chain in order to identify and address the risks to human and environmental rights present within it. Only then can the company identify what actions they must take to source responsibly.
Sedex enables businesses to achieve these aims.
What is supply chain transparency?
Supply chain transparency is when a company knows the full extent of their supply chain, from raw material harvesting and transport of goods to finalised products and services in the forms they are provided to customers. The ultimate aim is to be aware of every supplier in the chain and hold key information on them:
- Where all suppliers through the whole value chain are located – including the suppliers to direct suppliers, and their suppliers, and so on
- The inherent risks to human and environmental rights associated with the countries, industries and activities of each supplier. Therefore, a company will also need to know about the people working across their supply chain.
Why supply chain transparency is important
Supply chain transparency is the foundation of a responsible sourcing programme. It allows companies to identify, mitigate and prevent risks, helps them comply with legislation, and supports human and environmental rights due diligence efforts.
Consumers and investors expect companies to know where and how their products or services are made. This also includes understanding who is producing component parts, finished goods, or the products that facilitate a service.
Gathering this information about suppliers allows a company to achieve supply chain transparency. This activity is known as mapping a supply chain.
Discover how our solutions help businesses to map their supply chains, develop supply chain transparency, and manage risks to source more responsibly and improve working conditions in supply chains.
Mapping your supply chain: how to get started
Mapping your supply chain is an essential part of responsible sourcing. Learn what this is and how to get started with our overview.