What Supply Chain Transparency Really Means (2024)

Summary.

The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid- and senior-level managers across a broad spectrum of companies and industries. The reasons for this increased interest are clear: Companies are under pressure from government, consumers, NGOs, and other stakeholders to divulge more information about their supply chains, and the reputational cost of failing to meet these demands can be high. This article clarifies the meaning of supply chain transparency and offers guidelines to map and extend progress. The recommendations derive from the experience shared by dozens of companies up and down the supply chain across industries of all sizes over the last decade with MIT Sustainable Supply Chains, an initiative based at the MIT Center for Transportation and Logistics; Sourcemap, a provider of supply-chain-transparency solutions; and ongoing research in this area.