Supply chain initiative aims to build greater trust and transparency
Plans to develop an open platform that will enable businesses to generate more transparency and shared value along their supply chains are being drawn up.
Supply chain specialist Sedex Global has teamed up with the World Bank Institute to develop the platform, which should help companies better assess supply chain performance as well as increase sustainability among suppliers.
Using the platform, companies will be able to share and track core information in various areas including business ethics, labour standards, environmental footprints and governance practices.
Suppliers will be able to benchmark themselves against international standards and provide guidance on areas of weakness, which in turn will allow them to share information on performance with buyers.
For buyers, the platform will inform sourcing decisions by encouraging them to search for, and source goods and services from suppliers that demonstrate a good understanding of sustainability requirements and commitments.
Back in January, edie reported that a lack of supply chain data could pose a growing risk for brand reputation. According to Sedex, the initiative will help create a more level-playing field in this respect.
The company's CEO Carmel Giblin said: "It will deliver a step change in the uptake of responsible behaviors and practices by businesses. It will foster governance, sustainability and social development impacts in global supply chains".
The generation of more open and shared data has been shown to provides multiple supply chain benefits. While demand is growing for more corporate transparency, there is currently no common mechanism for the private sector to openly share such information.
This has led to a widening gap between companies that have the knowledge, capacity and funds to afford open and collaborative behaviours, and those who don't. This can be especially true for SMEs who face capacity constraints.
A recent White Paper published by edie revealed that robust supply chain data would be a crucial factor in helping to deliver a circular economy. Download the report here.