Recently the topic of supply chain visibility has become a board-level concern. This has largely to do with new legislation pushing companies to report their mainly upstream supply chain activities in terms of environmental and social risks. Gathering this information requires companies to start looking deeper into their supply chain. While some organisations have long-standing supplier management solutions in place, today’s requirements expect insights that go beyond the capability of these tools also taking into account indirect suppliers and collecting specific data.

Nonetheless, the implementation of thorough supply chain visibility can be a challenge but there are considerable benefits beyond the required reporting responsibilities.

Here we highlight the two main operational advantages of gaining supply chain transparency for organisations.

  1. Operational efficiency

It can prove itself to be painfully challenging to manage suppliers and receive requested information in full and on time. This often means endless chasing of suppliers for information by purchasing staff. Unfortunately, this time spent on collecting supplier information could be dedicated to critical tasks that add to the success of the organisation.

With streamlined supply chain visibility in place, many of these administrative tasks for much-needed information can be automated. Even though implementing effective supplier management requires dedicated time, the benefits become apparent immediately when less time is spent on chasing information.

  1. Customer engagement

As supply chain visibility beyond direct suppliers unlocks transparency of the supply chain, that includes a big opportunity for marketers. Customers’ and market stakeholders’ expectations for more sustainably and ethically produced products have significantly grown over the past years. It is becoming increasingly important for companies to highlight the provenance and background of products to their customers. Communicating the product journey with the final product adds considerable value to the product and increases the competitive advantage in the market.


Even though the requirements of the German Supply Chain Act and the EU’s draft Directive on Corporate Sustainability Due Diligence may seem a burden, we can see that great opportunities lie in supply chain visibility ready to be translated into operational efficiency and customer engagement.


Want to find out more? Get in touch with our experts and find out how you can start your journey today.