Strategic Focus: Traceability In The Supply Chain
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Executive Summary
In this report, we analyse the ways in which regulations are putting pressure on brands to evidence the origin of their materials, demonstrate the ethical nature of their suppliers’ working conditions and accurately account for environmental impacts. As environmental and climate-related litigation cases against firms are soaring, and climate and geopolitical risks pose threats to supply chains, brands in industries such as apparel, electronics, food and beverage, and automotives increasingly face a push-pull. They now require both accurate product data to satisfy compliance and trusted information to build sustainable products that meet their customers’ expectations. To meet these demands, supply chain traceability solutions are expanding to enable compliance, inform procurement and support sustainability functions.Several regulations are driving the need for visibility into product provenance
Non-regulatory forces are steering firms to adopt supply chain traceability solutions
Core features of supply chain traceability solutions
Supply chain traceability supports proactive supply chain sustainability
Figure 2. Corporate commitments and investments in supply chain sustainability performance
Figure 3. Overlap of traceability solutions for supply chain risk, compliance and sustainability management
Figure 4. Examples of software vendors serving the supply chain traceability market
About the Authors
Guy Lewis
Industry Analyst
Guy is an Industry Analyst in the Verdantix ESG & Sustainability practice. He currently leads research on circular economy software and services and supports research acro...
Elisa Molero
Industry Analyst
Elisa is an Industry Analyst at Verdantix, specializing in supply chain sustainability. Her research covers 100 vendors in the supply chain sustainability market, supporting b...
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
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