Transparency Vs Traceability: Why You Need to Know the Difference

Although transparency and traceability are used interchangeably around the discussion of sustainability, they’re not the same. With both terms being used by many fashion companies, the one that’s actually needed comes down to business objectives. For consumers, both of these terms can answer: Where does this product come from? Whilst for the brand, there’s an increasing number of questions arising that align with one or the other. In brief terms, supply chain transparency for business regarding supply-chain operations in particular. It is committed to improved communication about the provenance of products. It’s about engaging with suppliers in a tone of openness and honesty, covering a wide range of voluntary publications and degrees of disclosures. Unfortunately, the supply chain, in general, has become a tangled web due to outsourcing and subcontractors, making it difficult to make a clearer picture. For the past few decades, brands have operated within a vague industry, which is why it’s now going to take years for them to track back their entire supply chain. Large corporations are under scrutiny in particular for getting mixed up in forced labor scandals, showing how just how “unaware” many companies can get to be. Luckily, brands that are transparent have a traceable supply chain can help their consumers find visibility within the value chain. Increased Demand from Consumers Companies have a duty to their consumers to take appropriate measures to prevent the violation of human rights and to identify and address any abuses that may occur. It is therefore essential for companies to adopt correct industry practices in order to live up to this responsibility. We can examine this by reviewing the example of palm oil. Consumer brands with products that contain palm oil aim to inform their customers of what percentage of that oil is sustainably farmed. Some brands claim 50%, providing consumers with the appropriate information to demonstrate their transparency. In addition, consumers are pushing for traceability, which is an extra set of claims that customers can trust. This refers to divulging whether the exact item they wish to purchase contains sustainably sourced palm oil by tracing the ingredients back to its source. Likewise, it’s comparable to knowing in exactly what field your strawberries were picked from what conditions, and whether they were grown using pesticides. By simply publishing factory names, addresses, and other valuable information, global apparel companies can empower their workers and advocate for human rights by alerting them to rights violations and other abuses in supplier factories. Supply chain transparency and traceability help us to check for unauthorized subcontracting. The Benefits of Added Visibility Giving your brand clear visibility into material flows and traceability of material properties gives assurance that quality is made a top priority. With accurate and real-time information, businesses are able to manage their products with confidence, improving schedule, costs, and assurance of outcomes.
Sharing data is crucial and highly valuable when multiple entities are involved in a single supply chain, and it’s why we are starting to see various businesses making the transition from a linear value chain to a more open supply chain platform.
This type of supply chain transparency, traceability, and visibility certainly isn’t achieved overnight, but when used properly, these elements are essential in driving business operations to new standards of efficiency.