Block Chain

An enabler for supply chain transparency and business growth.

- Terri Hiskey

Recent research by the Economist Intelligence Unit has uncovered significant issues in the way multinational firms manage the ethical performance of their supply chains. With less than a third of organisations addressing issues such as ethical breaches or supply chain corruption, this represents a major concern across all industries.

Supply chains bear the responsibility of reputation for a brand.

Recent problems in the supply chain have resulted in frozen foods being recalled over warnings of a potentially deadly listeria outbreak. It has also generated costly, and damaging challenges for aviation companies.

A lack of trust can become a major issue for manufacturers that want to earn and maintain customer loyalty.

A Harvard Business Review study showed that retailers with a high level of trust in the manufacturer generated 78 percent more sales than those with a lower level.

In an environment where over half of consumers are willing to pay a premium for services from companies promoting social responsibility, now is the time for manufacturers to prioritise supply chain transparency.

Supply chain issues are also a costly business. A prime example here is KFC, who experienced massive supply chain issues after switching its logistics service provider — losing up to £4.2 million a week in the peak of its well-publicised chicken outage.