Market Data

What to Expect from Supply Chain Transparency in 2021

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What to Expect from Supply Chain Transparency in 2021

Supply chain transparency will be the top trend in 2021, according to Innova Market Insights.  This trend is extending to all markets, regarding government regulations in several countries and states within the US, moreover with the environmentalist organizations and green consumers now keeping a tighter focus on the growth of sustainable companies.  

Take food for example: 6 in 10 people want whole foods and want to know exactly where they are coming from and what the process entailed (Innova).  Consumers have higher expectations now about ethical production that’s kind to the environment, while eating as clean as possible.  As a result of COVID in 2020, these expectations regarding health and clean safety increased dramatically on top of the demands of the previous year.

The supply chain industry also faces a new expectation: the extension of sustainability demands on waste after products have been shipped.  Reusable and recyclable packaging, shipping materials and other necessities will not go unnoticed by the government or end consumer, stressing the linear supply chain to turn cyclical.  The current regulations will become tighter as will the demands of transparency by the end consumer.

Current Trends vs. Improving Supply Chain Transparency in 2021

Supply chain visibility is the key priority now to the end consumer after the Amazon Effect shifting procurement and logistics into a more foreseeable context.  Because much of the supply chain is outsourced, this is just as much in favor of the company as the end consumer. FinancesOnline says 42% of distribution logistics is outsourced, 37% of manufacturing, 29% of finishing, and 23% of packaging, as well.  Transparency allows for better production and shipping practices in every step of the supply chain. 

Track and trace QR coding will lead the transparency trend of 2021 for many many industries in their supply chain integration.  Data analysis is now the highest priority at 41% of the technologies in the supply chain.  The visibility of supply chains are 62% limited, 17% extended, and 15% only on production. We expect these statistics to surge in 2021. 

Supertrace can help with the flexibility of knowing how much supply chain visibility is important to your organization and implementing that need in accordance with the company’s best practices.  Using Supertrace for transparency in the supply chain allows your organization to share pertinent information regarding quality and health standards, and logistics, that would be more important to consumers.

Transparency in Green Logistics

Climate change is one of the biggest factors of this new trend.  Consumers now care more about sustainable practices and products and demand proof that these are being managed well.  From materials, to factory, to truck, and labor, consumers are requiring supply chains to exceed their past ISO 9000 guidelines and best practices, and step into a green revolution.  

Regulations change between countries and even in the United States between states, with California being the most notorious for their high standards of regulating transportation pollution with regards to personal vehicles and commercial truck drivers.  Even the parts of the vehicles have to be replaced or it’s illegal to drive a car or truck in the state.  This has been true for many years and will only continue to spread east.

A supply chain transparency solution such as Supertrace, allows track and trace of all products at every stage of the production process and enables simple fact checks like stops between origin and destination, a quick damage control check box, and even a check box for clean equipment and environmentally safe practices.  More than following government regulations, you can be as transparent as you want with customers and others in the supply chain process.

Not all countries and states are that clean and many don’t have the resources or willingness to participate in such practices to contribute to the environmental laws or procedures in another area.  Having transparency as to where things come from will make it harder to find, ship, and assemble certain resources, making them more expensive to get from elsewhere, but many market analysis reports in areas from food to fashion and beyond, say that people are willing to pay more for transparency for their health, the general global environment, and fair labor practices in the factory and distribution processes.

green logistics

Transparency in the Circular Supply Chain

There’s a new shift in the supply chain coming 2021 and that is taking the logistics industry from a linear to circular supply chain.  

At the end of the distribution process, the circular supply chain refers to the waste and the reused or recycled materials. There are some government regulations regarding waste but now companies are being more conscientious as to how transparent they are about the true end of the cycle, which is not retailer to consumer, but what happens after.  With more environmentally friendly expectations from consumers and government, companies are stepping up to breaking new ground in this extended part of the process.

As we expect more strict government regulations regarding waste in 2021, we can expect companies to adopt a more circular supply chain with higher transparency from start to finish.  This will increase the need for more reusable and environmentally friendly products in the packaging and shipping process as well, making companies stand out in terms of their environmental care and supply chain visibility.

circular supply chain

Digitally Enabled Supply Chain Integration 

The Amazon Effect has catapulted the insistence of transparent track and trace integrations across many industries.  While the industry experts require more communication, less damage, and more visibility to improve their shipping procedures, end consumers want increased just in time service, more agility, hands-on apps with physical location tracking, and who doesn’t want less customer service calls meaning less customer service call centers and less costs for everyone involved.

Supertrace solves the track and trace integration problem without having to heavily micromanage third-party logistics providers (3PLs).  Get direct answers to your questions, no matter in what cycle you are in the supply chain. Track and trace integration allows you to optimize your supply chain in a cost-saving and environmentally friendly way, cutting out the administrative work for the middle men and getting ready for 2021 consumer visibility standards.

digitally enabled supply chain integration

Supertrace is the simple solution to elastic logistics.  Supply chain transparency software is the solution to ever changing traceability needs for the increase in demand for supply chain visibility and to boost consumer trust.  Change data and information at any time and increase consumer trust statistics.  Supertrace is the supply chain integration tool necessary to keep your supply chain flowing more smoothly while preventing damage, fraud, track and trace problems, and increasing your supply chain transparency with everyone involved, from manufacturer to extended waste management.