Effective supply chain management helps to meet consumer demand

  • Written by Peter Needle
  • Published on 29 February 2016
  • Blogs

As consumers place more importance on ethics as well as price and quality, there is an increasing need for organisations to gain full transparency in their supply chain.

Modern buyers are starting to place increasing importance on ethics when considering their purchasing decisions. Sourcing and optimisation specialists Trade Extensions found that 80% of consumers said that they believe it’s important for brands to behave ethically and over 70% said they are much more likely to buy from brands with strong and proven ethical policies.

However, according to a recent survey of British consumers conducted by YouGov and Winckworth Sherwood currently only 7% of shoppers admitted that concerns regarding slavery, forced labour and human trafficking had a greater influence on their decisions than price (76%) or quality (62%).

These figures highlight the challenges faced by retailers. Not only must brands look to improve ethical sourcing within their supply chains, they must do so without compromising on quality and cost. With consumers becoming more conscious and informed than ever about where they choose to spend their money, retailers are now faced with the tough challenge of being all things to all people. Meeting all of these demands seems like an impossible task, but by investing in a more transparent supply chain now, retailers are better placed to fully tackle this challenge head on.

Many businesses are aware that they could make improvements within their supply chains that would benefit them greatly in the long run. However, without a clear overview of their suppliers and the entirety of their network they don’t have the ability to see exactly where these improvements can be made.

The benefits of improving supply chain visibility

Thorough supply chain management enables retailers to guarantee their products are being produced to the high quality they expect and that they are getting what they pay for too, with only authorised components being sourced for production. Ensuring that only suppliers who have been approved are involved in production means quality is kept consistently high. Improved supply chain efficiency helps to save save both time and money.

With such a clear overview of the whole supply chain businesses also have a higher capability to manage a more diverse group of suppliers. This allows them to eradicate any non-competitive suppliers and avoid becoming dependent on a single source, whilst focusing on strengthening relationships with those which perform the best. Being equipped with this knowledge gives companies greater leverage to negotiate with their suppliers to get the best price possible and helps to keep costs competitive.

Transparency across the entire supply chain makes it easy to pick up on unethical practices that standard factory audits can often miss, allowing retailers to easily spot and remove these practises from their chains. Improving ethics across the broader supply chain can also help to prevent costly mistakes such as rogue sourcing and supplier fraud from happening under a business’ nose.

Segura's supply chain solution

With Segura’s unrivalled supply chain management software, businesses are able to do all of this effortlessly, ensuring their products remain at a competitive price, are of high quality and ethically produced as well, satisfying both their profit margins and their customers too. Segura makes this easy to do in a cost effective way by easily integrating with a customer’s existing platforms. It is fast and affordable to set up, roll out and operate, taking the hassle out of supply chain management and streamlining the whole process.

By removing these risks and taking full control over their supply chains, businesses have a tighter grip on production costs and profit margins. These savings can in turn be passed on to the consumer through even better value products, meaning making the ethical choice doesn’t always need to come at an extra expense or reduced product quality.

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