The times when vague information about a company’s supply chain was enough for all involved are now in the past. In today’s business world, information is taking precedence; from the customers to the government, everyone wants to know how a company’s products were created, where they were made, and even the factors that went into the production.
Importance of supply chain transparency:
Supply chain transparency should not be considered an invasion into a company’s privacy, nor as an unnecessary cost-inducing operation. Supply chain transparency is as beneficial to companies as it is to their customers. Companies with increased supply chain transparency tend to be more efficient in managing their resources and, consequently, become cost and time-efficient. Studies suggest that 57% of companies find that efficient supply chain management enables competitive edge and better business growth.
Consumers are also more likely to be loyal towards companies that provide them with the relevant supply chain information. This is especially true in the digital age, in which consumers are becoming more concerned about labor rights, health issues, and the environment. As per statistics, 70% of industry professionals believe that supply chain can improve customer service endeavors.
Despite the advantages of proper supply chain management, the reality is that only 22% of companies worldwide actually have a proactive supply chain network. History shows that companies that fail to divulge supply chain information properly often end up in hot water, even those that have decades of reputation to back them up.
Supply chain transparency issues in the wine industry:
The wine industry is often considered notorious for toeing the line of ethics as far as production techniques are considered. The reputation of the global wine industry has been rocky in the past few years due to several concerns, some popular examples of which are the following:
- The labor rights issues of workers in vineyards in the African continent have alarmed the customers of wine brands worldwide, as the problem turned out to be a clear case of human rights violation. Customers demand to know the conditions under which each brand produces their wine so as to disassociate themselves from wine brands that promote such exploitative practices.
- The negative impact that mass wine production and transportation can have on the environment is another issue that environmentally conscious customers have found difficult to digest. Several wine customers tend to seek out wine brands in their own country to cut down on the carbon emissions caused due to wine transportation. Some customers also want to know whether wine brands are following eco-friendly modes of wine production rather than using toxic pesticides and machines that can damage the environment.
- In recent times, vegans have started looking into the origins of brands that sell vegan wine to ensure that all the ingredients and the production manner adhere to their demands.
The given examples show that customer demands and trends are evolving and that more and more customers want to know exactly what went into the making of the wine bottles on their tables. This is where supply chain transparency can help out both the customers and the brands.
Benefits of a digital supply chain management system:
A wine brand that can address all the customers’ concerns like the ones mentioned in the examples, will always be preferred over one that does not do so. Supply chain transparency enables brands to be more personalized in their approach to the customers and provide them with precisely the kind of wine experience they expect.
While all these factors sound great, this is the point where the question comes in: how difficult is it to set up a proper supply management system for a wine company?
A few years ago, maintaining proper supply chain transparency would have been incredibly difficult. However, blockchain technology has come to the forefront as the pioneer in establishing efficient supply chain management systems.
Authlink, in particular, is on a mission to make supply chain information as transparent as possible, thereby strengthening the relationship between companies and their customers. Authlink creates a digital twin for each product, under which their supply chain information will be promptly recorded. Customers can access detailed information regarding their wine bottles and ensure that they get exactly what they want. Customers can also be assured that their wine bottle was created through ethical practices and that there was never any room for forgery, manipulation, or even counterfeiting.
Authlink also offers the user real-time supply chain insights and analytics, enabling companies to efficiently handle their products. Moreover, Authlink allows dealers and distributors to access information about the products through easy smartphone scanning, thereby making the process of understanding product supply chain information much more straightforward.
In short, what Authlink offers is a clear and digital path towards digital supply chain transparency that companies can take up to facilitate business growth, improve customer relationships, develop better reputations, and stand out from the competition. If you are looking to improve the supply chain efficiency of your wine business, book a demo with Authlink today.