Question

What is multi-tier supplier sustainability transparency and the challenges that any organization faced to maintain transparency in sustainability of their multi-tier supplier?

Answer 1

Multi tier supply chain transparenct refers to the system in which if a product is needed to be recalled for any of the safety measures or is found to be contradictory to the packaging claims, an organisation could quickly be able to identify the root cause of where it all started. Although sounding very beneficial, this system has its own challenges and outcomes:

1. Global Knowledge: For establishing a dynamic system of transparency in the sustainable supply chain, one should have a huge knowledge about the global suppliers, countries, resources, and the procedures through which the product is being delivered. Various global suppliers all around the world are to be connected to establish this system which is not an easy task.

2. Cost: The second challenge would be huge costs associated with this system. Although customers like transparency about their products; where the product reached and its location, it requires huge costs even for Amazon to establish such a dynamic supply chain business all around the world where all the suppliers and the companies could integrate and work together.

3. Management Problem: At last, the third challenge would be the management problems associated with this feature. Obviously if the global suppliers are associated from all around the world, it indeed is a big task to manage each of the items, resources, actions and suppliers of who is doing what and when. It becomes a hard core task to manage and integrate all the activities of this supply chain.