SupplyChainTalk: Improving supply chain risk management with better visibility

On 3 July 2024, SupplyChainTalk host Ana Maria Velica was joined by Amr El-Helw, Head of Supply Chain, Marico Egypt; Patrick Strauss, CEO, SeriousDX; and Ville Parkkinen, Director - Product Marketing, OpenText.

Views on news
The top trends in 2024 are enhancing visibility beyond tier1 and 2, shifting to ESG and Scope3 emission tracking and more digitalisation. Complying with ESG in the supply chains has its own challenges, especially Scope 3 emissions and supply chain due diligence. Also, GDPR for product information is coming next year. 

Regulations, data gaps and improved customer experience
Big investments are being made in technology and data analytics within supply chains, which can help map out a supply chain’s vulnerabilities. Companies also look at risks from a new perspective – instead of disruptions in logistics, they now try to predict geopolitical disruptions, while monitoring suppliers today also includes checking their financial situation to see whether they have the ability to tackle disruptions and economic challenges.

Monitoring risks has become an ongoing exercise, so companies have enough time to respond. Digital technologies, when adopted, however, always need to serve a purpose. Although they are measures taken to mitigate risk, reshoring and reshoring involve risks too. While there is a big push to implement AI, ML and other advanced digital technologies, there is less talk about data gaps and how they can be filled.

Supply chains also must consider changing shopping behaviours of consumers and adjust their supply chains and strategies accordingly. Currently, the EU Green Deal is causing a lot of headaches to manufacturers, although requirements are relatively straightforward with a focus on providing visibility along the full cycle. Implementation, however, is tricky for lack of data as visibility in the supply chain is still rather sporadic. New regulations call for companies to fill in those data gaps.

Meanwhile, customers are becoming more tech-savvy and can access data to make informed purchasing decisions. Regulations such as digital product passports will also serve this purpose and are closely linked to improving the customer experience. Sharing data, sometimes even between competitors, is becoming prevalent. Sector-based data sharing platforms are emerging in line with EU regulation, and there are also ESG related ones, such as Eco Vadis or Meta’s ESG risk rating platform. 

The panel’s advice

• Make sure you avoid “paralysis by analysis”, when an excessive amount of data is collected, part of which doesn’t even get analysed.  
• The digital passports for uniquely identifiable products can function as digital twins, which can also help identify and remove counterfeits.
• Good communication and collaboration across functions is key to any transformation.
• Always be aware of changes in customer behaviour and identify gaps in your digital processes – without that, your view of the business may get skewed.
• Get rid not only of paper but paper-based thinking as well.