Knowing where the materials used in a company's products come from is not simply a good or responsible idea. According to EBN contributor Tam Herbert, it is increasingly a non-negotiable requirement. Herbert pointed to several new laws designed to promote transparency in procurement and materials but specified that supply chain managers may be ill-prepared to comply.
Supply chain management is contingent on overseeing all elements of a process but, according to Herbert, exact information on what happens on a supply chain's micro level can be difficult to acquire. Sustainability expert Gil Friend told Herbert that many large companies rely on insufficient Microsoft Excel spreadsheets to track materials.
Companies can employ new B2B integration systems for an enhanced view of processes at partner firms. Automatic and immediate transmission of data between companies can enhance accountability and effectiveness at all levels.
Sourcing and procurement departments could soon see several new responsibilities, according to Supply Chain Digital. The source reported that financial departments are largely prepared to grant new powers to purchasing managers. In addition to making the traditional decisions expected of their position, procurement leaders could soon have more control over financial direction, according to the source.