Listening to our customers over this past one year, the struggle outlined in this fantastic Wall Street Journal Article, Companies Rush to Trace Sprawling Supply Chains as Sustainability Rules Loom, is very real as I see companies trying to catch their breaths while forging ahead on finding a viable solution to their massive traceability problem. What was once a “nice to have” has ballooned into a regulatory quagmire for which there is not always an easy solution. The terms “sustainability” and “traceability” are being used more interchangeably as you cannot have one without the other. IT platforms abound but as this Wall Street Journal article has so astutely pointed out, “All they can do is to get the existing data into a manageable and useful format,…But data is also very human and if you put rubbish in, you will get rubbish out. It doesn’t matter how sophisticated the program is.” As a result, we are seeing that
- Companies are finding themselves in a pickle even for established sustainability claims where certificates are easily posted but no one is necessarily checking them for accuracy.
- Tier one manufacturers and vendors are starting to be held responsible for disclosing their full supply chain down to the raw material supplier. But how much can you rely on that data being accurate?
- Companies want to provide Scope 3 emission data but it’s only as good as the supply chain data you have available.
Finding solutions to these problems without breaking the bank are on everyone’s minds. With every discussion that passes, new ideas and approaches become apparent. Reach out to me to learn more about how our solutions may help you win this traceability race with your sanity intact.
A host of supply-chain regulations went into effect in recent years and more are on the way, exposing companies to potential penalties and public criticism if found to be negligent, lawyers said. The rules come as businesses, especially small and midsize companies, have a limited view of their supply chains and are struggling to broaden their oversight, sustainability analysts say.