- In 2021, the number of supply chain disruptions worldwide amounted to 11,642
- Only 6% of companies report full visibility on their supply chain
- 69% of companies do not have total visibility
What can be the cause of this problem?
Modern supply chains can be complex and involve multiple tiers of suppliers. This makes it difficult to have full visibility and control. Natural disasters such as floods, hurricanes, or droughts can damage crops and disrupt transportation routes. Outbreaks of diseases among livestock can lead to reduced supply of meat and dairy products. Conflicts, trade policies, and labour shortages can also have an impact on food supply chains. These various reasons highlight the need for businesses to have contingency plans in place. This can help to mitigate risks and respond to unexpected events. The disruptions can quickly spread through the entire network, affecting multiple tiers of suppliers, and causing delays or even complete shutdowns.
What can you do as a business?
To mitigate the risk of disruptions from suppliers beyond the first tier, companies need to adopt a more holistic approach to supply chain management. Establish strong relationships with their suppliers and work together to identify potential risks and develop contingency plans. This may involve diversifying the supplier base, increasing inventory levels, or developing alternative transportation routes.
Businesses can invest in technology that allows for greater visibility and tracking of their supply chain. As a result, identify potential disruptions early on to allow businesses to act before the problem becomes too severe.
Want to improve visibility?
Our supply chain mapping tool verifies the supply chain at each tier, giving better and more reliable data compared with relying on information supplied by tier 1 suppliers. This helps companies gain a better understanding of the dependencies and vulnerabilities within the network. Increased visibility enables them to identify potential risks and take proactive measures to address them. For example, our ‘location report’ provides companies with insights on the location of direct and indirect suppliers.
Want to improve collaboration?
Our document management module can provide a centralised location for businesses to store and work on the same document simultaneously. This is making it easy for suppliers to collaborate and make changes in real-time. As well as leave comments and feedback on the documents. The document management tool can help businesses improve supply chain transparency by providing real-time updates, verifying suppliers, tracking documents, and analysing data.
Want to improve product management?
Our product specification module allows businesses to request and agree on a clear and accurate specification for the products supplied. This ensures both parties are aware of the necessary requirements and helps ensure consistency in product quality. By using this tool, businesses can create a digital record of product quality allowing for advanced reporting insights on ingredients, allergens, packaging and more.
“Authenticate has helped us to continuously assure our supply chains for quality & integrity through transparency. The platform design is modern, slick and user friendly.”
Nomad Foods
By investing in technology that improves supply chain visibility, companies can build more resilient and sustainable supply chains that are better equipped to handle unexpected challenges. Our technology has already located over 40,000 organisations from 150 countries that our customers can now connect to.
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