Data suggests that more than 90% of customers would like to be loyal to brands that are transparent about their operations. Today, the benefits of supply chain transparency are more important than ever.  

Supply chain transparency can be beneficial for outside parties as well as internal business operations. In a nutshell, there are lots of advantages for businesses that are transparent about their supply chain. Verifiable credentials can bring more trust and transparency to the supply chain as they are secure and tamper-proof.  

Here, we will discuss the benefits of supply chain transparency and how verifiable credentials can fit into the picture. 

What Exactly Is Supply Chain Transparency? 

In simple words, when a company knows everything about its supply chain and shares that information both within the company and with the outside world, it is called supply chain transparency.   

Here, we are talking about details like the origin of the material (its source), how products are made, working conditions, and the whole journey from raw materials to the final customer-ready product.  

It is not just about companies having this information for themselves (that’s called supply chain visibility). True supply transparency is all about being transparent and sharing all this information with wholesalers, middlemen, customers, investors, and anyone else who is interested. 

Read More: What Is Supply Chain Transparency and the Role Of Verifiable Credentials in It 

Role of Verifiable Credentials in Supply Chain Transparency 

Verifiable credentials are like digital certificates that prove your transparency claims are legit. They are issued by trusted authorities and provide a secure, tamper-proof way to share information about your supply chain practices.  

EveryCRED helps to create, issue, and verify verifiable credentials used for the supply chain. We offer dedicated services to various industries to ensure supply chain transparency and traceability.  

With verifiable credentials, you can give extra assurance that what you are saying is true, which helps build even more trust with everyone who matters to your business. 

Benefits of Supply Chain Transparency 

1. Trust with Customers 

The modern customer is smarter, conscious, and cares about what they buy, so being transparent with customers is important to build trust. Research by Fashion Revolution reveals that 69% of customers want to know how their clothes are made.  

So, being transparent about supply chains shows that a company is committed to sustainable and ethical practices, which eventually increase trust between customers and manufacturers. 

Take Patagonia, for example. They have built a loyal following by sharing detailed information about the environmental impact of their products through their “Footprint Chronicles.” Such transparency attracts eco-conscious consumers and also sets a high bar for the industry. 

2. No Scandals and Risk Management 

No company wants to be in the headlines about labor abuses, quality control, or environmental disasters in their supply chain. With supply chain transparency and regularly auditing suppliers, manufacturers can identify issues before they become a crisis.  

The food industry has been leading the way in using transparency to ensure product safety and integrity. In the wake of heavily publicized contamination and mislabeling incidences, giant brands such as Nestlé have revealed full supply chain data.  

This enables them to trace and identify any such affected products as soon as possible, thereby taking proper measures to ensure both public health and the protection of their brand image.  

3. Compliance with Regulations  

Governments around the world also keep an eye on supply chain practices. The UK Modern Slavery Act in the United Kingdom and the California Transparency in Supply Chains Act in the USA require companies to disclose their efforts to fight forced labor.   

Companies that are transparent about their supply chains have more chances to be prepared to meet these new requirements and avoid penalties.   

By sharing the necessary supply chain data with the world, they can stay ahead of the regulatory curve.  

4. Better Efficiency and Collaboration  

Transparency is not just good for customers and the world; it is also helpful for internal operations for the company. When everyone in the company has access to the complete supply chain data, they can more easily find inefficiencies and opportunities for improvement.   

This internal visibility/transparency makes it easier for teams to collaborate and solve problems together. For instance, a detailed map of suppliers and logistics can help companies optimize their inventory management and transportation routes.   

With a proper understanding of the flow of goods and information, businesses can reduce waste, reduce costs, and respond more quickly to changes in the dynamic market. 

Check: What are Verifiable Credentials and Why You Must Know About Them Today 

5. Innovation and Continuous Improvement 

All the collected supply chain transparency data can be used to find new ideas. With detailed analysis of trends and patterns across the supply chain, organizations can find new ideas and solutions.  

For example, if a company notices more defects from a particular supplier, they can ask that supplier for quality control improvements. Or, if data shows a growing demand for eco-friendly packaging, they can invest in sustainable alternatives to meet customer preferences. 

6. Attract Top Talent 

Companies that engage in supply chain transparency have a better opportunity to attract new talent and retain existing employees. 80% of job seekers would choose a company for its social and environmental commitments, according to a National Association of Colleges and Employers survey.  

This way, businesses can attract employees who are interested in society and the environment by being satisfied with supply chain transparency and ethical practices.   

Transparency is more viable for a culture of ethicality and openness within the firm since it is possible for employees at all levels in a position to view the supply chain; they would be more accountable for the execution of their duties.    

The Bottom Line 

At the end of the day, supply chain transparency is a win-win for everyone involved. Companies that go for supply chain transparency can have many advantages. While achieving full transparency can be challenging, especially for companies with complex global supply chains, the rewards are well worth the effort. 

The use of verifiable credentials in the supply chain can bring trust between all parties. Contact us to understand how we can incorporate verifiable credentials in your supply chain to bring more transparency, trust, and traceability. We are one of the best verifiable credentialing platforms in the market right now.