supply chain transparency Archives - SpendEdge

Tag: supply chain transparency

From Farm-to-fork: Why Supply Chain Transparency is Important

Modern consumers give great importance to the quality and price of the products they purchase. As consumers demand more information about the origin and authenticity of the products that they consume, forward-looking brands seek to reach new levels of transparency. The challenge is to accurately provide a higher level of detail when faced with an increasingly complex supply chain.  Moreover, tracking and documenting every step in the supply chain is no simple task. Supply chain transparency goes well beyond gaining visibility into the extended supply chain. It is the process by which a company acts on the insights gained through greater visibility to manage risks more efficiently. In today’s competitive market, establishing consumer loyalty is easier said than done. It takes a lot more than a few rewards plans to keep a consumer from slipping to the competitors. Brands must build trust and instill confidence in their customers that the goods they provide are of the best quality, safe, and authentic. Unlike before, today, consumers want to understand the journey a product goes through before it gets to the store shelf – and this is especially true for SE_Demo2food products.

The Importance of Supply Chain Transparency in the Food Industry

Improved food quality and supply chain transparency have become increasingly important to many manufacturers in the food industry as consumers increasingly seek these qualities in the food products that they purchase. Furthermore, social media has raised the bar, making it much easier for customers to force transparency on brands and manufacturers who do not embrace this movement. The ones failing to adhere to do so often end up with bad goodwill and negative word of mouth against the brand. Here are some of the main reasons why supply chain transparency is the need of the hour for every company in the food industry:

Adhering to regulations

Food manufacturers continue to face numerous challenges in managing the food safety. Apart from satisfying consumer demand for increased supply chain transparency, the food industry is becoming increasingly regulated by the U.S. Food and Drug Administration as part of the Food Safety Modernization Act (FSMA). FSMA requires companies in the food industry to increase their focus on prevention rather than a response to contamination incidents, which will require a comprehensive view of the entire supply chain, something many food suppliers struggle within today’s global economy. This makes the need for supply chain transparency all the more critical. Without the ability to track and trace through the entire supply chain, it becomes complicated to ensure that contamination has not occurred at any point in the food manufacturing process. By leveraging advanced technologies like big data analytics, track and trace, and supply chain mapping, food manufacturers, and suppliers can increase the supply chain transparency.

Building customer loyalty and trust

Though manufacturers will have the ability to pinpoint the cause of contamination with the help of increased supply chain transparency, the consumer will always blame the supplier regardless of the actual source of contamination. Though not every customer will be interested in farm-to-fork traceability, the ability to display supply chain transparency following recall is one of the best ways to reduce the impact and loss of consumer trust. Publicly accepting and addressing the source of the contamination and effectively demonstrating the steps taken to ensure the cause allows the supplier to rebuild that trust and display the ability to help prevent future outbreaks.

Establish brand equity

When manufacturers in the food industry build supply chain transparency and provide customers with information about where their food has been, what ingredients have been used, and how fresh it is, it builds brand equity. Building brand equity not only requires the technological ability to have supply chain transparency, but also the motivation and willingness to provide consumers with the necessary information as a standard practice and not just when there is a contamination. Though this may seem to be too much of a hassle for food manufacturers, increased public transparency will help improve a brand’s value as customers appreciate the steady flow of information and consequently become more loyal to the brand.

To know more about the importance of supply chain transparency in the food industry

Get More Info

Related Posts

Four Compelling Reasons Why You Need Transport Management System

As the levels of global trade increases, both in terms of volume and complexities, transactions have started taking place between multiple parties and suppliers. Additionally, such transactions are also happening over large geographies. To cater to such increasing levels of trade, businesses have to manage logistics services spanning over vast territories. This has increased the amount of shipping that takes place both in terms of distance and volume, adding to the overall cost and time. It has become a significant challenge for the organizationsSE_Demo2 to manage their transport logistics efficiently. Consequently, businesses are relying on transport management system (TMS) to move freight from origin to destination reliably, efficiently, cost-effectively.

Benefits of Transport Management System (TMS)

Warehouse Efficiency

Transport management system can drastically reduce the total freight time and enable companies to stock less as turnaround times are significantly optimized. Also, a TMS solution integrated with an ERP system helps reduce the number of errors during entry, which saves time caused by data errors. Additionally, a TMS working in tandem with warehouse management system (WMS) provides better visibility into the supply chain and help maximize productivity and improve the process of moving goods.

Inventory Optimization

Since the transport management system assures faster delivery of goods, it allows the company to function with a minimal level of inventory. As businesses can ascertain the time taken for shipments, they can accurately forecast their inventory requirements and hold an optimal level of stocks.

Savings in Inventory and Freight Cost

As a result of holding lesser inventory, the company can potentially save millions in inventory cost. Since they don’t have to maintain as much inventory as before, they can better utilize the inventory cost in some other business function. By implementing a TMS solution companies can save as much as 90% of the total freight costs which can enable them to remain competitive and even afford price reduction on the final product.

Improved Customer Service

A transport management system with reporting and analytical ability allows companies to monitor the outcome of each and every decision they take. For instance, when businesses partner with multiple carriers, TMS solutions analyzes the overall cost, freight time, and other parameters of each shipping provider in order to perform analysis on the effectiveness of each partner. The solution can provide detailed insight into the cost incurred and the time taken by each partner, which can help them make the correct decision in the future. This way they can choose partners based on the needs of the customer. For instance, if customers prefer faster deliveries then they can select carrier with fastest transit times, and choose economical carrier if cost is the primary concern of the customer.

For more information on transport management system, supply chain, logistics software, and TMS solutions:

Get More InfoRelated Articles:

Top Trends in the Corrugated Packaging Market

As the volume of global trade increases, the customer base gets dispersed in all parts of the world. To carter to such vast market, a proper logistics network is essential which can ensure safe delivery of goods. Corrugated packaging plays a vital role in preserving the status and condition of goods to be transported by providing extra strength, resilience, and protection against environmental factors. The market for corrugated packaging is growing due to factors such as an increase in economic activities in developing countries and the growth of e-commerce industry.

Request Free SampleTrends in Corrugated Packaging Market

Do-it-yourself Corrugated Pallets

Majority of the packaging and logistics company are opting for do-it-yourself corrugated pallets that can be assembled in-house. Such pallets are an engineered material that does not have any defect, and additional tools or equipment are not required. Consequently, it ensures safe assembly of corrugated packaging and results in cost savings in terms of logistics.

Corrugated Point-Of-Sale Display

There has been an increasing adoption of corrugated point-of-sale display within the retail sector as it offers high visibility at a relatively low cost. Additionally, it can be easily customized and installed at any location in a retail setting. Floor display, counter display, pallet display, endcap display, and sidekick display are the different types of corrugated point-of-sale displays available in the market.

Recycling of Corrugated Packaging

As corrugated cardboard sheets can be easily disassembled and made of recyclable material, companies are putting an effort towards recycling the corrugated packages. Also, by recycling the corrugated cardboard, a fiber can be produced that can be used for manufacturing of new corrugated packages. Almost 90-94% of corrugated packages are recycled every year.

Corrugated Package for Premium Packaging

Corrugated packaging is finding its way in the premium packaging of expensive consumer products such as perfumes, jewelry, and gift boxes to indicate high cost and quality of the product. Companies are using corrugated packaging for premium products as they are not only cost-effective but also is light and durable. Additionally, it can also be coated with adhesives and undergo treatment to make it flame resistant.

Read more about the top trends for corrugated packaging along with pricing trends, procurement best practices, supplier risks, pricing insights, strategic purchasing, and procurement insights in SpendEdge’s upcoming report on the global corrugated packaging market.

CTA view full report

Related Articles:

Top 5 Drivers of Supply Chain Innovation

The modern supply chain has progressed leaps and bounds from traditional practices due to intense competition in this sector. WithGet More Info products increasingly becoming commodities, competitors are finding it difficult to differentiate their products. Thus, companies are looking forward to optimizing their supply chain to achieve a competitive advantage. Advancement in technologies, cloud computing, and availability of big data are enabling supply chain managers to optimize their supply chain. In order to achieve greater profitability, increased revenue, and improved service, companies are looking for new technologies and practices, which will drive supply chain innovation.

Internet of Things (IoT)

Supply chain management is a nightmare task for an organization with millions of products, thousands of suppliers, and hundreds of logistics partner. An interconnected IoT system can automate the coordination between all the process and partners. For example, an image recognition software can identify a product in the inventory, and when the stock gets low, it can automatically place an order to the supplier and receive the item.

Complexity of Compliance Environment

Today’s supply chain must deal with increasing number of compliance issues following numerous regulations and guidelines. A supply chain optimized for a particular product or an industry may face difficulty when serving a new vertical. Manually trying to figure out ways to abide by such regulations could eat up valuable time. So, the industry is looking for automation and machine learning to drive supply chain innovation in this field.

Advanced Collaboration Platforms

Optimizing the supply chain goes beyond just internal optimization of supply chain processes. Advanced collaboration platform enables the company to share valuable information across multiple tiers of manufacturers and suppliers. This allows companies to share forecast data with suppliers and obtain their responses in real time. Such innovations help businesses and their suppliers improve transparency and strengthen relationships.

Big Data and Analytics

A typical supply chain can generate an enormous amount of data across multiple parameters. A single item is capable of generating data across all parameters, which poses a problem of storage and analysis. Big data and analytics are driving supply chain innovation as organizations try to figure out performance measurement metrics and set benchmarks in the area of perfect order management, cash to cash cycle, fill rate, inventory turnover, and inventory velocity.

SCM Outsourcing and Rationalization

Many SCM services have emerged in recent times specializing in select supply chain functions. Apart from this, 3PL and 4PL services are in fierce competition to win the business. With the advent of so many service providers, companies have to identify partners who can provide strategic value to their business.

Want to know more about how to optimize your supply chain?

Get More Info

Related Articles:

Request free proposal

Get unlimited access to our procurement reports library | Plans starting from $250/month Start FREE trial

SpendEdge Logo

Hello there!

Get in touch with our experts to know more about our subscription and customized research offerings.

We help businesses engage with right suppliers, boost cost savings, develop right benchmarks, and achieve sourcing excellence.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice