Sedex: Practical Steps to Improve Supply Chain Visibility

As global supply chains become increasingly complex, manufacturers face mounting pressure to demonstrate ethical and sustainable practices throughout their operations.

Tomas Novotny, Solutions Expert at Sedex, believes that achieving true supply chain visibility has evolved from an aspirational goal to a fundamental business requirement.

"In today's interconnected world, responsible sourcing isn't just an aspiration—it's a business imperative," says Tomas. "As a manufacturer, you have the power to shape a supply chain that not only meets consumer demands but also upholds the highest standards of ethics and sustainability."

While many companies recognise the importance of supply chain transparency, the practical implementation often proves challenging. Tomas acknowledges that achieving comprehensive visibility across complex, global networks requires significant effort, but emphasises that success is entirely achievable with the right strategic approach.

A roadmap to transformation

Tomas has developed a comprehensive 10-step framework designed to help manufacturers transform their supply chains into models of transparency and responsibility.

The approach addresses everything from foundational mapping exercises to advanced technology implementation.

1. Supplier mapping: The journey begins with comprehensive supplier mapping, which Tomas describes as essential for identifying all tiers of suppliers, from raw material sources to final assembly. This process involves documenting supplier locations, certifications, and sustainability practices while maintaining regular updates to ensure accuracy.

2. Risk assessment: Risk assessment forms the second critical component, with manufacturers evaluating suppliers based on ESG criteria. Tomas emphasises the importance of identifying high-risk areas, particularly regions prone to labour violations or environmental degradation, enabling companies to prioritise improvement areas and allocate resources effectively.

3. Sustainability standards: Establishing clear sustainability standards represents a pivotal step in the transformation process. According to Tomas, this involves developing a robust supplier code of conduct that outlines sustainability expectations, setting specific measurable targets for key indicators, and ensuring clear communication of these standards to all suppliers and stakeholders.

4. Audits and assessments: "Conduct on-site audits to verify compliance with sustainability standards," advises Tomas. "Use third-party auditors to ensure objectivity and credibility." The monitoring framework extends beyond formal audits to include self-assessment questionnaires, enabling suppliers to regularly report on their practices and maintain ongoing compliance visibility.

5. Supplier engagement: Supplier engagement and capacity building represent crucial elements of sustainable sourcing success. Tomas advocates for providing training and resources to help suppliers meet sustainability standards, encouraging the sharing of best practices and innovations, and recognising suppliers who excel in sustainable practices.

6. Data collection: Using data analytics can help identify trends and improvement opportunities. "Implement systems to collect and analyse sustainability data from suppliers," says Tomas. "Use standardised reporting frameworks like GRI or SASB for consistency."

7. Collaboration: Collaboration extends beyond direct supplier relationships to encompass industry-wide initiatives. Tomas recommends joining industry initiatives focused on sustainable sourcing, participating in multi-stakeholder forums, and sharing non-competitive information to improve practices across entire sectors.

8. Leverage tech: Modern supply chain transparency increasingly relies on technological solutions. Tomas highlights the importance of utilising digital platforms to centralise and manage supplier information, implementing track-and-trace systems for key materials and components.

9. Stakeholder engagement: Effective stakeholder engagement forms another cornerstone of successful implementation. This involves regular communication of sustainability efforts to customers, investors and regulators, seeking feedback from NGOs and community organisations in sourcing regions, and maintaining transparency about challenges and improvement areas.

10. Continuous evolution: The final element of Tomas's framework emphasises the importance of continuous improvement. This involves regularly reviewing and updating sustainability goals and strategies, staying informed about emerging sustainability issues and best practices, and adapting approaches based on lessons learned and changing stakeholder expectations.

Business impact and value creation

Tomas argues that implementing the aforementioned strategies delivers significant benefits beyond mere compliance.

"By implementing these strategies, manufacturers can significantly improve their supply chain visibility, leading to more sustainable and responsible sourcing practices," explains Tomas.

"This approach not only mitigates risks but also creates value through improved reputation, increased customer trust and long-term business resilience."

The framework presented by Tomas represents a practical roadmap for manufacturers seeking to navigate the complex landscape of sustainable sourcing.

By following these systematic steps, companies can build supply chains that not only meet current expectations but are positioned to adapt and thrive in an increasingly sustainability-focused business environment.