Over the past years, the increased international demand for international goods has caused the global distribution system to be stretched thin. And, while manufacturers and supply chain managers are working hard to level up the efficiency and reach of the systems currently in place, risks such as counterfeiting and scams have grown in frequency and severity since the start of the Covid-19 pandemic.
Luckily, adopting a radical transparency framework can help organizations prevent costly scams, protect the brand’s reputation, and make better-informed business decisions. In this guide, you’ll learn the benefits of introducing radical transparency and the technologies that can support a smooth adoption.
Let’s Cover the Basics: What Is Radical Transparency?
Before diving into the benefits of introducing radical transparency, it is important to understand what this framework is and how it can be applied to the supply chain.
Coined by Ray Delio in the early 1990s, radical transparency refers to a way to run an organization in a way that ensures that data and information is gathered promptly and made accessible to all stakeholders.
Radical transparency can help consumers build trust in a brand, ensure that employees and managers make well-informed decisions, and allow shareholders to better understand a company’s positioning in the current market.
In particular, when looking at radical transparency Authena in the supply chain, this framework encourages the complete disclosure of all data gathered throughout the distribution system to all stakeholders involved in the process. Examples of the information that should be disclosed include the environmental impact of each production process, the origin and sourcing process of raw materials, and the working conditions of employees.
The Benefits of Introducing Radical Transparency in the Supply Chain
A radical transparency framework, when introduced in the supply chain, can offer manufacturers and supply chain managers a wide range of benefits, including:
- The prevention of fraud and corruption
- The ability to prevent – or minimize the impact of – scams
- The ability to prove authenticity and freshness throughout the supply chain
- Improved consumer confidence and trust through good tracking systems
- The prevention of improper, illegal, or unethical trading practices
- The ability to pinpoint and reduce inefficiencies
- Improved data accessibility at all stages of the supply chain
- Improved business decisions based on real-time, accurate data
- The ability to collect and deliver up-to-date information about a product’s status and conditions
The benefits translate into improved consumer trust and loyalty, who are able to access untempered information about a product’s end-to-end journey and its authenticity.
What’s more, thanks to the high volume of accurate data, supply managers can identify the root cause of inefficiencies and pinpoint fraudulent attempts before these can become costly scams.
How To Introduce Radical Transparency in the Supply Chain
Introducing radical transparency within your supply chain and your organization as a whole might not be always easy or straightforward without the right support. Indeed, establishing a framework of transparency and data accessibility requires a drastic shift in company ethos and culture.
Nonetheless, companies can successfully adopt this framework with the right technology and professional assistance – starting with the three steps below.
Use Technology To Access Accurate, Real-Time Data
In order to be able to share information and up-to-date data with all the parties involved in the supply chain, organizations need to have the right systems in place to gather this data. And, this is where technology can help.
Solutions based on emerging technologies such as blockchain, NFT, digital twins, the Metaverse, and IoT allow supply chain managers and companies to record data. Thanks to the properties of these technologies, the data recorded is immutable, impossible to be tampered with, and gathered in real-time.
What’s more, thanks to these technologies, manufacturers can create an end-to-end communication system that allows all parties involved in the supply chain and beyond to access up-to-date, accurate information.
Make Information Accessible Throughout the Supply Chain
Once an organization has the right systems in place to collect, organize, and share data that is reliable, accurate, and up-to-date, a shift in mindset is necessary to ensure that this data is delivered correctly.
Some of the best practices to follow when adopting radical transparency include:
- Ensuring that results of projects and strategies are delivered honestly and openly
- Ensuring that employees and managers receive all the information necessary to make well-informed business decisions
- Making others in the organization aware of who holds which role and responsibilities within the business and beyond (i.e.: ensuring that parties across the supply chain know who to interact with for best outcomes).
- Ensuring that all employees are equally informed and feel “in the loop”
- Sharing the motivations and data behind business decisions
- Pinpointing inefficiencies in the supply chain
- Being open to suggestions for improvement from the parties involved in the supply chain
Partnering With a Product Authentication Expert
As mentioned above, shifting the entire company’s framework to radical transparency might not always be quick or straightforward. And, since each company and supply chain is unique, no two systems will work as well for two different organizations.
Ultimately, if you are looking to adopt this framework to avoid scams and counterfeiting, partnering with a product authentication expert can help your organization seamlessly introduce new technologies and avoid wasting funds on irrelevant systems.
