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December, 2020

“A Portrait of a Supply Chain” – why transparency matters to us all

Francisco Melo, Vice President and General Manager, Avery Dennison Intelligent Labels

Recent months have shown us the importance of supply chains. I never thought that the conversations that I have at work around traceability and transparency would be had in almost equal measure with family and friends. But this is the impact of the COVID-19 pandemic and its ability to disrupt our lives. Of course, in technology terms the word ‘disrupt’ is often used in a positive sense and that can also be applied here. There is now the opportunity to rethink how goods are sourced, manufactured, transported, and interacted with. Applying data-driven analysis to each part will not only make organizations more efficient but improve the well-being of the planet and those that live in it.

It’s interesting to note that even now 65% of business leaders identify sustainability as an even bigger priority post COVID-19. What was already on the boardroom agenda has become more important. Equally as important is that fact that 83% of business leaders believe that supply chains and associated technologies can support their sustainability objectives. And there is consumer pull too with 70% of consumers now believing that trust in a brand is more important than in the past – knowing how a product is sourced and brought to market is critical to enable this.

These findings have inspired the film “A Portrait of a Supply Chain” that Avery Dennison is launching today. Its goal is to highlight what transparency means to the people working at the heart of supply chains. From deep connections to the land, to safer and more sustainable practices - the viewers get an insight into their work and commitment to the community and the environment.

Watch the full film

 

Our ‘heroes’ of the film are Verónica Candelero García, Ryan Nienaber and Emma Bonar. Together they represent three businesses on three different continents that have one mind in common - a clear understanding of safer and more sustainable supply chain practices. Verónica founded Cacaste, a Mexican cocoa butter producer that has developed a very close working relationship with a network of growers in Tabasco, enabling trust and traceability in their supply chain. The cocoa supply chain has been identified in a UN report as ‘very complex’ and uniquely identifying raw materials at source is key, as this fast-growing business supplies cocoa to beauty companies from the United States to New Zealand.

Ryan, co-founder of Greenfish, a seafood business in South Africa which has made a commitment to ensuring that all their seafood is sourced from legal fishing operations and is traceable back to its point of origin. Every single package includes information about the species, origin, and production method. Achieving best practice in their industry is particularly important since the UN estimates that just 8% of wild caught fish adhere to the Marine Stewardship Certified (MSC) guidelines for sustainability.  

Finally, Emma, the owner of 69b Boutique in the UK, the ‘first store dedicated to a better fashion industry’ with a vision to bring together designers who are socially and environmentally responsible. Brands it works with must adhere to a strict policy on transparency and accountability with a commitment to sustainable fashion. In her words: "our customers rely on us to know where the products that they're buying are coming from”. In many ways Emma is ‘ahead of the game’ in her sector since a McKinsey study found that eight out of ten sourcing executives in the fashion industry have plans to publish their companies’ level of transparency on at least tier 2 level by 2025 in the form of supplier lists.

In technology terms the word ‘disrupt’ is often used in a positive sense and that can also be applied here. There is now the opportunity to rethink how goods are sourced, manufactured, transported, and interacted with. Applying data-driven analysis to each part will not only make organizations more efficient but improve the well-being of the planet and those that live in it. — Francisco Melo, Vice President and General Manager, Avery Dennison Intelligent Labels

Each organization works in a different sector with its own individual challenges, but they all share common objectives such as establishing transparency in their supply chains and in doing so engendering trust with their customers. I might add that the shooting of the film was also done with sustainability in mind, the content was shot with local film crews and produced via The Smalls, a video creation platform, connecting a community of over 18,000+ independent filmmakers.

With the introduction of digital identity technologies, it becomes possible to provide traceable identities for every product, enabling transparency from raw materials to end product and beyond. In doing so this offers consumers the highest standards of visibility, safety, education, and authenticity possible, while giving businesses complete control over their supply chains. And as important, connected products also enable consumers to have a window of connectivity to those responsible brands, providing direct feedback and creating never possible before interactions and hopefully fun, something in need today more than ever!

For more information read the reports “IoT and the Imminent Supply Chain Digital Transformation” and “The New Transparency”.