Supply chain transparency: 7 benefits for retailers

Is your retail business failing to capitalise on the benefits of supply chain transparency?

Supply chain transparency can lead to greater efficiency in the value chain, reduced risk of non-compliance (and resulting fines), increased consumer trust and a better outlook for securing capital investment. 

Transparency will strengthen your supply chain by enabling faster issue resolution, reducing supply chain risks and optimising the flow of goods and materials.

Evolving legislation, advancing technology and rising consumer expectation means that retail and fashion businesses may not survive without attaining transparency of their complex global supply chains.  
Keep reading to explore why supply chain transparency matters and the wide-ranging benefits it brings.

What is Supply Chain Transparency?

Supply Chain Transparency is the ability for retailers and brands to know and be able to disclose information about the origin and flow of goods and materials through their entire supply chain, from raw materials to finished products. Transparency means willingly disclosing fact-based data internally and externally to investors, consumers, legislators, campaign groups etc.

Why is transparency so important?

Supply chain transparency is becoming a non-negotiable in the fashion industry, with consumers keen to know more about where their clothes come from and how they are made. Added to that, the increased regulation from legislators around the world and the mounting pressure from campaigners, both demand compliance with ethical, environmental and safe working standards.

How Transparency Strengthens Supply Chains

However, retailers are not going to disclose supply chain information externally if it is detrimental to their trading business, so we can infer that Supply Chain Transparency also means Supply Chain Improvement. This is not a checkbox that can be ticked and marked ‘job done’. It is a continuous effort to stay on top of supply chains and ensure that standards do not slip.

The textile industry is evolving very quickly, as new technologies are implemented and new trading standards are being set. It is important for companies to realise that Supply Chain Transparency requires robust data capture and the right team to map the supply chain, conduct audits, resolve issues, reduce risks, increase sustainability and optimise the flow of goods.

The benefits of Supply Chain Transparency arise from improved standards within the supply chain, as well as the culture of openness. Let’s look at seven of the most impactful benefits for a brand:

1.      Increased consumer trust

Consumers say they are more likely to trust and support retailers that are transparent about their supply chains. This is especially so for younger generations, who are more value-driven and socially conscious. Data from YouGov profiles collected between Oct 23 and Oct 24 found that 54% of Britons want to know where their products are manufactured.

Furthermore, a 2024 survey by PwC found that more than four-fifths of consumers are willing to pay more for sustainability, even as the cost of living pressures increase.

However, it’s also true that the savvy minds within the UK retail industry hold these statistics with a degree of scepticism: in their experience, it doesn’t always play out in reality. Aren’t cash-strapped consumers more likely to be swayed by price than provenance? And yet, there is clear evidence that consumer trust is lost radically when supply chain failures happen.

2.      Increased credibility and reduced reputational risk

Supply chain transparency plays a pivotal role in safeguarding brand reputation. In an era where consumers, investors, and regulators are increasingly focused on ethical and sustainable business practices, the ability to disclose accurate, up-to-date supply chain information is a powerful demonstration of accountability. By providing visibility to stakeholders — including customers, campaigners, and advocacy groups — retailers signal that they exercise intentional oversight and maintain robust controls over their operations.

However, transparency is not solely about celebrating success; it is also about acknowledging shortcomings. When issues arise, a timely acknowledgement, paired with a clear plan for remediation, can strengthen rather than weaken trust. Organisations that respond to challenges with openness and a commitment to corrective action position themselves as responsible leaders in their sector, reinforcing both credibility and long-term stakeholder confidence.

3.      Improved supplier collaboration and culture

By working towards supply chain transparency, retailers are also likely to enhance their collaboration with suppliers. By sharing information and working together, retailers and suppliers can identify and solve problems more effectively. Regular engagement with suppliers, alongside the support of a supplier management tool such as Segura, can improve adherence to compliance standards, ensure documentation is up-to-date, find ways to reduce environmental impact and waste, and improve quality control. Overall, a positive culture of partnership is likely to evolve, as all parties are incentivised towards mutual goals.

4.      Improved risk management

By tracking and tracing the flow of goods and materials in the textile industry, retailers can identify and mitigate potential risks, such as supply disruptions, quality problems, and compliance concerns. A retailer can decide the key risks that it needs to mitigate against, according to its business priorities. Using a supply chain risk management tool like Segura means you can create, view and manage audits and, should non-compliances be identified at factories, raise corrective action plans and reports.

“Prioritising your supply chain resilience with true end-to-end visibility and transparency is key”

With regards to supply chain risk management, it is traceability, not just transparency, that is required. The ability to not only know what your supply chain looks like, but real-time order tracking that fashion retailers and brands need. Mapping the supply chain provides insights into where your suppliers are and what they do for you, but tracking your orders through the supply chain can show you ways to improve the flow, both in the long term and short term. Effective supply chain mapping supports risk management and helps retailers prepare for and avoid costly supply chain disruption by being able to diversify their supply chains, act quickly and reduce impacts.

5.      Transparency helps businesses achieve regulatory compliance

With the rise of legislation such as the EU Eco-Design for Sustainable Products Regulation requiring a digital product passport and modern slavery acts in many jurisdictions, supply chain transparency will be essential to achieve regulatory compliance. Companies with established, transparent supply chains are better positioned to adapt quickly to evolving legislation.  

Transparency is no longer a ‘nice‑to‑have’ feature for businesses; it is a necessity. For TFG London, transparency and traceability have been essential in navigating challenges and unlocking new opportunities

This not only reduces the risk of regulatory fines but also builds greater trust with consumers.

6.     Better company performance, better recruitment, and other cost savings

A 2021 study by McKinsey found that companies that are more transparent about their supply chains tend to have higher sales and profits. The study found that these companies are more likely to be seen as trustworthy and ethical by their customers and are also better able to attract and retain top talent. Employees are more likely to want to work for companies that are committed to social responsibility and sustainability. In this time of a highly competitive recruitment market, this is a significant benefit.

For the apparel industry, there are some other financial wins. For example, supply chain transparency can bring savings, for instance, in the consolidation of packaging suppliers, through increased supplier rebates and logistical efficiencies.

7.    Supply chain transparency is an investor win

Supply chain transparency often contributes towards a business’s ESG goals, which has been shown to have a positive effect on company share price, the likelihood of obtaining investment and available lending facilities.

See our article: How Retail Brands can make Cost Savings while driving ESG Standards.

In fact, Proxima’s Investing in a Sustainable Supply Chain report shows that 89% of investment managers are discussing ESG (Environmental, Social, and Governance) standards in the supply chain with the companies they invest in. 

In summary

Governments, investors, consumers, sales channel partners and employees are putting increasing pressure on the garment industry to be ethical, sustainable, and net zero. Supply chain transparency can give business leaders the data and insights to reap the benefits available.

A true end-to-end supply chain transparency software, like Segura, enables retailers to map their supply chain, on an order-by-order basis, ensure supplier compliance and measure performance. Through the Digital Passport Module, Segura also provides a view of all of the components and suppliers within a product's supply chain to give customers a full picture of a garment’s provenance at the point of sale.

Overall, having one solution that does all can empower enormous change and commercial advantage for retailers in a fast-changing industry.

About Segura

Segura Systems is a UK-based SaaS company enabling ethical, sustainable and efficient multi-tier supply chains.

Segura provides n-tier mapping, transparency, traceability, visualisation, compliance and reporting. Segura sits in the centre of your supply chain management structure, creating a central repository for all your supply chain, ESG-related data and evidence, including from third-party data sources.

If you'd like to learn how Segura can help you, please get in touch with us today.