Digital supply chain solutions can drive value and reduce risk

Supplier auditing and supply chain assurance

The global pandemic has accelerated the shift towards digital supply chain solutions, with companies around the world adopting technology into their day-to-day operations at speed.

In supplier auditing and supply chain assurance, in particular, LGC ASSURE has witnessed the rapid adoption of remote technologies to offset issues around the inability to travel to and access sites.

Digital supply chain requires a change in thinking

The success of this approach in achieving at least a level of ongoing compliance has accelerated a change in mindset. Questions are being asked about whether supply chain assurance should move from a series of interventions to manage risk to a more connected strategy to drive value and reduce risk. There’s a growing emphasis on continually improving performance, rather than simply complying with minimum standards.

This shift in mindset is being driven by technological advancements, increasingly complex business models and supply chains, and a greater focus on product integrity. How would it affect your business?

Companies are slow to adopt digital supply chain applications and systems

A study carried out by MIT revealed that 81% of companies do not have visibility across some aspects of their supply chain and 54% have no visibility at all.

81% of companies do not have visibility across some aspects of their supply chain and 54% have no visibility at all

Generating actionable intelligence

But based on the reasons stated above, it is essential for companies to adapt and develop digital supply chain processes, systems and technology into their networks.

Generating actionable intelligence through a digital supply chain

LGC ASSURE, a leader in providing supply chain assurance solutions across it's 4 businesses, are currently working with global brands and partners to develop digital supply chain assurance solutions that will address weaknesses in supply chain performance – issues that present an ever-growing threat to brands.

How do we achieve this?

With access to over 45 million data points relating to audit and testing performance, as well as the ability to aggregate publicly-available data sources, businesses can start to use data to take real-time decisions about how to manage supply chain risk and design monitoring strategies. Over time, this deep-level data analysis will also enable them to provide predictive insights into future areas of risk or opportunity.

The benefits of a digital supply chain

Transforming this data into actionable intelligence provides supply chain transparency, enabling brands to protect their reputation, improve customer relationships, and build trust.

It also allows brands to manage ongoing product integrity and quality, as well as have greater control over emerging value drivers – such as a supplier’s cultural performance, environmental impact and social compliance.

Although technological advances have led to increased efficiency and developments in traceability, monitoring and testing, the threat of contamination of food or high-risk goods remains.

 Increased visibility across the supply chain will support sourcing decisions, the differentiation of products in the marketplace and ultimately the delivery of a level of much-needed security for end-consumers.