Retail surgery: How to mitigate risks in the supply chain

Managing supply chains effectively has become increasingly crucial to maintaining brand image and reputation. In the age of mass media, retailers can’t afford to turn a blind eye; any irresponsibility or wrongdoing, even in a remote area of a company’s supply chain, will be exposed – and rightly so.

For large global retailers, supply chains become so vast and complex that they might not even be fully aware of any unethical or illegal activities. But there is now a constant stream of organisations being hauled in front of the courts for supply chain failings.

Even for smaller retailers, though, it can be tricky to avoid falling foul. Not having the right level of information could potentially lead to getting mixed up with fraudulent suppliers that steal hard-earned cash.

“Problems such as these tend to crop up because of opaque supply chains. Some retailers don’t have systems in place that deliver visibility into their supply chains, so understandably it’s easy to sink into murky waters,” comments Christian Lanng, CEO of business platform Tradeshift.

Making supply chains more transparent is essential for retailers and their suppliers, in order to hold each other to account. In an era of cloud platforms, this can be achieved by digitising processes and having up-to-date supplier information, boosting compliance and reducing risk for all the parties involved.

Lanng continues: “While we can never fully predict supply chain threats, we can certainly do our utmost to prepare and avoid them. By having access to real-time supplier master data, retailers can reduce risks by verifying suppliers, flagging unusual activity and cutting ties with questionable suppliers, protecting their business and brand image in the long run.”