The emergence of responsible supply chains
As the wave of technology-led disruption begins to impact global mineral supply chains and regulators and consumers demand more responsible behaviour, what can businesses do to emerge as winners?
Technology is driving two important factors: regulation and consumer opinion.
The impact of Regulation:
Technology advances so fast that rigid guidelines are no longer appropriate to drive compliance in sectors they strive to oversee. Instead, regulators are adopting dynamic models in which they place the burden onto companies to “own” their responsibilities and pro-actively protect the interests of those impacted on a “best efforts” basis. See, for example the case of Facebook and Cambridge Analytica, in which the United States Federal Trade Commission (FTC) imposed significant fines against established players for violation of consumers’ privacy and misrepresentation.
The impact of Consumer Opinion:
The voice of the customer is heard now louder than ever. Online communities exchange opinions and achieve consensus in ways never seen before. This phenomenon introduces a new driver that dictates profitability. Consumers can now demand premium or discounted pricing for goods as a result of considerations which until recently had little impact on pricing structures.
In light of these factors, do adjustments need to be made to existing or planned supply chains?
There is no doubt that as a result of these developments, adjustments will need to be made across the entire supply chain, especially at the point where the supply chain meets retail markets. At the same time, as shareholder, customer and consumer expectations change, responsible sourcing will need to become a core consideration for businesses in order to maximise shareholder return, and can no longer just be a second priority CSR agenda item.
These technology-driven impact factors create a “perfect storm”, making visibility and transparency across the entire supply chain central to “traditional” corporate objectives.
For more information on how SAFE. can help your company to (i) prepare itself for upcoming legislative requirements, (ii) implement mechanisms by putting relevant practical tools in place, and (iii) adopt transformative technologies such as blockchain, IoT and smart contracts to lead the way in your ethical supply chain visit us at www.safesupply.io.