The future of resilience: Introducing Sphera Supply Chain Transparency

FOR MORE CONTEXT

Elevated risk and expectations: Why supply chain transparency is important

Supply chain management requires significant investment and careful attention. In 2022 alone, business logistics costs in the U.S. surpassed 2.3 trillion.  But in recent years, supply chains have become increasingly unpredictable, now subject to new hazards like cyberthreats and downstream impacts from global disruptions. At the same time, new sustainability and ethics regulations complicate supplier selection and management.

For procurement leaders in charge of securing compliance and business continuity, the supply chain game is changing. Take a look at some of the hurdles standing in the way of supply chain optimization:

• Increased volatility: Between wars, natural disasters, and advanced cyber-attacks, today’s supply chains face a high risk of delays. The problem hit a fever pitch during the COVID-19 pandemic, when port bottlenecks, driver shortages, and trade restrictions ground supply chains to a halt. More recently, the Panama Canal drought and the geopolitical tensions around the Red Sea have caused further supply chain difficulties. In general, the global nature of modern supply chains and today’s interconnected economies mean that disruptions in one region often have repercussions across the globe, cutting off the flow of raw materials and goods.
• New and expanding ESG regulations: Investors, consumers and regulators have prioritized sustainable and ethical supply chains. Logistics activities produce significant greenhouse gas (GHG) emissions, and companies now face rising standards for green sourcing, carbon emissions reductions and workers’ rights. In addition to entrenched regulations such as the California Supply Chain Act, over 15 new regulations have lately arisen as a result of this increased pressure, including the Carbon Border Adjustment Mechanism (CBAM) and the EU’s Regulation on Deforestation-Free Products (EUDR). These rules come with detailed reporting requirements even for the most intricate supply chains and wide supplier networks.
• Heightened costs: As the pressure increases, leaders can’t afford to lose sight of any link in their supply chain. For businesses struggling to maintain full oversight and compliance, the costs can include regulatory fines and legal fees,, missing products and a failure to meet market demand — squeezing margins and hurting customer relationships.

To achieve the new mandate for transparency in supply chain, procurement leaders must strike a tricky balance between essential business continuity concerns — proactive risk management and cost mitigation — and demands for more ethical practices. After all, businesses can achieve 100% compliance and still collapse in the face of supply chain disruptions.

HOW SPHERA CAN HELP 

Strength at every link: Redefining transparency with an all-in-one platform

In a world where supply chain disruptions are inevitable and clean production is the expectation, procurement leaders can’t go it alone. They need the technology to see into every supply chain impact — and the insights to predict emerging disruptions. Supply chain optimization now means maintaining insights into all suppliers, partners and GHG emissions, with an eye toward decarbonization, human rights and operational improvements.

Sphera is leading the way in supply chain system software, using advanced technology to help businesses adapt to new regulations and risks. The new Supply Chain Transparency (SCT) solution is the culmination of two essential tools: . Through a rich and all-encompassing suite of capabilities, Supply Chain Transparency provides comprehensive supplier performance insights, real-time risk monitoring, compliance management, and more. Its essential strengths include:

• Risk visibility: Identify risk hotspots with a 360-degree view of supply chains. Procurement teams benefit from real-time insights derived from advanced AI, 15 billion monthly articles, 24/7 risk tracking, one million customer and supplier sites and supplier data from standard and custom ESG assessments—all vetted by expert analysts who deliver actionable alerts with industry-leading, 99.9% accuracy.
• Collaboration: Collaborate directly with suppliers across all tiers to take proactive risk mitigation actions. Automated risk assessments and corrective actions make the path toward a more resilient future clear.
• Compliance: Integrate accurate supply chain data into widespread reporting tasks, such as Scope 3, ESG, GHG. Legislative compliance becomes easier with thorough tracking, auditing, and validation processes — as does identifying and reporting on improvements.

KEY TAKEAWAYS 

Foresight and agility: Realize the benefits of end-to-end insights

Agility has emerged as the new for strong supply chains that thrive in a volatile marketplace. Supply Chain Transparency helps businesses quickly bounce back from unforeseen challenges and ensure no regulation slips through the cracks.

By increasing flexibility and oversight, this supply chain management software helps teams anticipate and mitigate the impact of disruptions — along with their accompanying costs — and improve overall operational efficiency. Low-performing suppliers rise into view, automation takes care of tedious data collection tasks and accurate insights shed light on costly inefficiencies. Furthermore, this supply chain system goes beyond merely informing to actually suggesting tangible corrective actions. The result of this transformation lowers costs, boosts revenue and gives procurement leaders more time for high-level, strategic initiatives.

Responsible sourcing and production also have benefits beyond helping businesses avoid noncompliance fines and delays. A surveyed 81% of global customers say they care whether businesses ethically source and produce their products — and a stunning 83% said they would pay more for such goods. Companies that comply seamlessly with evolving sustainability regulations can improve their reputation among consumers and investors and generate additional business.

WHAT HAPPENS NEXT

Becoming a leader: Kick off an era of responsible operations

Mounting supply chain regulations represent not just a burden but an opportunity to join the societal push to care for natural spaces, workers, and future generations. Even amid shifting risks, procurement leaders still have the power to build resilience and sustainability into every link of their supply chains—especially with the right SCM software.

Supply Chain Transparency from Sphera gives businesses the best of AI insights, expert analytics, and direct supplier data to not only stay on top of the complex supply chain landscape but take actionable steps that improve compliance and performance. With automation, data and hands-on support, leaders can create order out of uncertainty and position their companies as leaders in the green movement.

Start building strong, adaptable supply chains with a Supply Chain Transparency demo.