The events of the previous year revealed - The extent of hyper connection our society has become and how fragile those linkages can be when supply chains are disrupted. Businesses recognize the threat that a rising climate poses to their product supply as well as the importance of establishing green credentials.
90% of CEOs believe that sustainability is critical to success because it may reduce environmental, social, and economic discontent, as well as total risk.
CEOs aren't the only ones who are taking notice. Consumer knowledge and demand for brands that adopt sustainable practices are expanding. Since the pandemic, nearly half of customers have made more environmentally friendly shopping decisions, and this trend is likely to continue.
Individuals, businesses, and governments are pledging to make significant changes in order to rescue our planet and our way of life. Businesses must use this opportunity to radically re-evaluate their operational models in order to ensure their long-term viability and resilience.
The Pandemic Disrupted Almost Everything
COVID-19 exposed flaws in our supply chain systems, stressing how the world was unprepared for such massive change. Demand fluctuated between lows and highs. Forecasting got skewed. Over-ordering is a problem. There are long lead times. Problems with inventory positioning.
Consumer costs are increasing. The need for reform is unmistakable!
Disruption, big or small, is here to stay. However, this pattern of disruption can be broken. We can't forecast the next disruption, but we do have a bright future ahead of us because this possibility is now a reality.
Take Advantage of Data to Improve Visibility
Because of the fragmented nature of vendor systems today, all stakeholders must manually reconcile divergent data sets throughout the network, which makes variance accounting extremely challenging. The present linear supply chains make complete visibility of all operations and inventory activities from raw material sourcing to individual components impossible.
Businesses may now address long-standing issues like data transparency and traceability by transforming their supply chains into supplier networks.
To offer a shared permissioned digital infrastructure between several businesses, multiparty systems use technologies such as blockchain, biometrics, identification, tokenization, and confidential computing.
Because of privacy and security protections such as revoking, and shared responsibility managed by a structured governance framework, competitors can trust one other and co-innovate without jeopardising IP.
Transform Existing Supply Chain into Sustainable Networks
In a multi-faceted supply chain system, platform integration can overcome many of these old concerns. Businesses can use multiparty systems to address long-standing issues like provenance and data transparency, as well as transform existing supply chains into supply networks. It's also beneficial to the company. Companies that combine technology and sustainability are 2.5 times more likely than others to be among the best-performing enterprises in their industry in the future.