In a nutshell: Supply chain transparency

Supply chain transparency refers to an overview of the entire supply and distribution network. Which players are involved in the network, where are which assets located? What are the replacement times? How flexibly can capacities be ramped up or ramped down? These are some of the key questions. Supply chain transparency is therefore a crucial prerequisite for supply chain risk management.

In some industries, supply chain transparency is a matter of course. However, this is lacking in many sectors and at many companies. Some companies already lack transparency in their own network of subsidiaries and sales companies. The coronavirus crisis has just shown how important it is to know all the players in the supply chain, even beyond your own suppliers, “all the way back to the mine”

Our tip:

Conclude “disclosure agreements” with your suppliers: Your suppliers name the upstream suppliers and undertake to conclude disclosure agreements with the upstream suppliers as well; you undertake not to procure the relevant products and components directly from them and their upstream suppliers. In this way, you can achieve visibility of the supply chain, ideally “all the way to the mine”, at least for critical products, and at the same time accept your suppliers’ legitimate interest in protecting their procurement channels.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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