Transparency is a keyword in an interconnected marketplace. The global nature of business today and the rapid pace of technological change has prepared the way for procurement professionals to meet the challenge of supply chain transparency.
Not knowing what’s going on in your supply chain is not an option. You need to be aware that the best practices your organization holds dear are modeled throughout your supply chain. Unethical treatment of laborers and unsafe workplaces are factors you need to be aware of, to protect your public profile and to ensure that your organization doesn’t suffer because of a lack of knowledge.
When your supply chain transparency is poor, you’re in the dark about where production takes place. The murk of distant sweatshops is obscured from view in the absence of supply chain transparency.
The European Union has led the way with respect to transparency, demanding that all companies doing business in the EU with revenues in excess of €750 million be subject to regulation, to ensure full compliance with legislation governing workplaces.
While measures like this are helpful, there’s still a great deal companies can do toward piercing the veil where transparency is concerned. Collaboration with suppliers and technology offer ways and means to supplement legislative efforts with corporate action.
Collaboration and technology.
Measuring supplier response and quality via data is one way procurement departments can ensure that suppliers are toeing the ethical line. Another is finding direct links to suppliers who are in jurisdictions which have taken legislative action that must be complied with to do business.
But collaboration is also proving to be a strong response to a lack of transparency. Partnering with campaigns for fair labor practices and organizations promoting trade is one way in which corporate entities can make a public commitment to supplier transparency and compliance.
While giving procurement professionals a means of vetting the practices of suppliers through the efforts of third parties, collaboration also speaks to the need for an ethical public profile. In the end, everyone wins, from the woman sewing a button on a blouse in Bangladesh, to the operation procuring, to the suppliers, themselves.
Strategic collaboration, in concert with legislative action and tools like periodic inspections and reports provides a complex of ways to meet the challenge of supply chain transparency.
CenterPoint Group – procurement by the numbers.
At CenterPoint Group, we’re procurement professionals, leveraging the pooled resources of our member base to obtain goods and services at reduced cost. Procurement by the numbers brings operations everywhere the opportunity to optimize their processes, delivering superior ROI and significant savings.
We believe there’s strength in numbers and our track record supports that assertion. When you’re ready to take your procurement process to the next level, assuring exceptional savings on everything from vehicles to janitorial supplies, CenterPoint is here to help.
Discover the power in numbers, with the CenterPoint Group.