As companies around the world scramble to meet looming sustainability standards, one of their most pressing challenges is tracing and understanding sprawling supply chains. It’s no small feat — these complex systems can involve hundreds of thousands of different parts, components, and materials from multiple sources across the globe. To keep up with rapidly advancing technology, companies are quickly becoming better equipped to identify and monitor their suppliers, evaluate the sustainability of their products, and take action as needed.
Tracking global supply chains is a critical part of any company’s responsibility for transparency and compliance with regulations. The United Nations’ Sustainable Development Goals (SDGs) mandate that companies have detailed information on the provenance of materials in order to meet higher standards of sustainability. In addition, the European Union is working on a Sustainable Corporate Governance Directive that would require large companies to disclose non-financial information about their activities and supply chains.
Modern technology can make it easier for companies to understand their complex supply chains. For example, advances in blockchain technology have made it possible for companies to securely store and share data about the sources of their materials. This includes information about suppliers, materials, and production processes. In addition, data analytics can help companies identify potential risks within their supply chains such as those related to labor issues or environmental degradation.
H&M, Polo Ralph Lauren, and others are turning to tech solutions. The Wall Street Journal reported “H&M began rolling out a traceability platform from startup TextileGenesis for its recycled polyester and man-made cellulosic fibers, such as viscose, that can contribute to deforestation. It uses blockchain technology to track and verify the use of sustainable fibers in garments. H&M Group has more than 600 Companies Rush to Trace Sprawling Supply Chains as Sustainability Rules Loom commercial product suppliers who make their products in over 1,500 factories in Europe, Asia and Africa.”
Pierre Börjesson, head of transparency and traceability at H&M Group said, “[It] is showing us great potential to obtain improved traceability and has become a key initiative in our work in this area. The closer we get to our 2030 goal for all our materials to be either recycled or sourced in a more sustainable way, the more traceability we gain.”
In this ever-changing landscape, you need a reliable supply chain partner. At Alba, we offer comprehensive solutions to ensure seamless logistics operations. Our team of professionals are highly experienced in the areas of warehousing, transportation, distribution, freight forwarding and project cargo. With our extensive global networks and vast industry knowledge, we can provide tailored solutions to suit your individual needs. As a full-service logistics provider, we provide our customers with a one-stop shop for their supply chain needs. With our specialized expertise and tailored solutions, we can help you optimize your operations, and improve customer satisfaction. Trust us to take care of all your supply chain needs. Get in touch today.
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