{"id":6816,"date":"2020-07-09T07:51:29","date_gmt":"2020-07-09T12:51:29","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=6816"},"modified":"2020-12-18T22:06:28","modified_gmt":"2020-12-19T03:06:28","slug":"what-should-constitute-your-supply-chain-information-disclosure-strategy","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/what-should-constitute-your-supply-chain-information-disclosure-strategy\/","title":{"rendered":"What Should Constitute Your Supply Chain Information Disclosure Strategy?"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-6920\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Information-1-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Information-1-300x200.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Information-1-768x512.jpg 768w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Information-1-1024x683.jpg 1024w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Information-1.jpg 1920w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><a href=\"https:\/\/flevy.com\/browse\/stream\/supply-chain\">Supply Chain Management<\/a> is getting more and more complex.\u00a0 The pressure on the Supply Chain information to be made public is also increasing day by day.\u00a0 With the popularity and widespread use of social media, it has become more and more difficult for organizations to hide information pertaining to supply chain practices, employees\u2019 treatment, suppliers\u2019 processes, or waste materials generated that could affect the environment. \u00a0Social media often publicizes negative reports on companies\u2019 supply chain practices\u2014its best to have a robust information disclosure strategy before anything like that ever happens.<\/p>\n<p>Executives must appreciate these external forces and information transparency demands, and react proactively to build and maintain competitive advantage for their organization. \u00a0They need to be able to, first, accurately predict the data requirements of various stakeholders and then unanimously decide on the type and frequency of the information to be shared. \u00a0A reactive information disclosure strategy is less time and planning intensive, but it does limit the chances of first-mover advantage over competition.<\/p>\n<p>Supply Chain information can be classified into 4 categories:<\/p>\n<ul>\n<li><strong>Critical<\/strong><\/li>\n<li><strong>Strategic<\/strong><\/li>\n<li><strong>Non-critical<\/strong><\/li>\n<li><strong>Optional<\/strong><\/li>\n<\/ul>\n<h3><strong>Critical Information<\/strong><\/h3>\n<p>Organizations using this information category know that they have certain glitches in their Supply Chains that could potentially be a source of criticism from NGOs and the media and may bear adverse effects on their reputation.\u00a0 This includes information concerning unhygienic or inferior quality products; unfair supply chain practices; or environmental problems.<\/p>\n<h3><strong>Strategic Information<\/strong><\/h3>\n<p>Even though stakeholders do not ask for this information, this information category is considered strategic as disclosing this data can boost brand value and product differentiation. \u00a0The strategic information category is high value to the organization but is low on risks for the supply chain.\u00a0 For example, in the beauty, fashion or food products industry, sharing information about organic ingredients may be instrumental in achieving product differentiation and brand reputation.<\/p>\n<h3><strong>Noncritical Information<\/strong><\/h3>\n<p>Disclosure of this information category is typically un-called for and has negligible effects on brand value.\u00a0 This information category has low value for the company and has low risks for the Supply Chain.\u00a0 For instance, needlessly sharing child labor data in regions with actively enforced child welfare laws.<\/p>\n<h3><strong>Optional Information <\/strong><\/h3>\n<p>This information category is a matter of internal supply chain consideration and has no bearing on the customer.\u00a0 The optional information category is low value to the organization and is actually highly risky for the Supply Chain. \u00a0For instance, potential quality issues and defects in the supply chain that are identified and resolved during quality control, and do not affect the finished product.<\/p>\n<p>There isn\u2019t a one-size-fits-all strategy that organizations can adopt to ensure a viable and high-quality <a href=\"https:\/\/flevy.com\/browse\/flevypro\/supply-chain-disclosure-strategy-5114\">Supply Chain Information Disclosure<\/a>.\u00a0 However, the approach needs to be evolving based on individual circumstances.\u00a0 Senior executives should promptly respond to public inquiries, ensure fair treatment of employees, and guarantee compliance with basic human rights to protect their organizations\u2019 reputation.\u00a0 Experts suggest the following 8-phase approach to address and improve Supply Chain Information Disclosure.<\/p>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/supply-chain-disclosure-strategy-5114\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-6918\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Supply-Chain-Disclosure-Strategy.png\" alt=\"\" width=\"1440\" height=\"1080\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Supply-Chain-Disclosure-Strategy.png 1440w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Supply-Chain-Disclosure-Strategy-300x225.png 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Supply-Chain-Disclosure-Strategy-768x576.png 768w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/06\/Supply-Chain-Disclosure-Strategy-1024x768.png 1024w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/><\/a><\/p>\n<p><strong>Appreciate the criticality of Supply Chain information disclosure <\/strong><\/p>\n<p>The first step is to analyze the forces that demand increased supply chain transparency and ascertain the importance and priority of information for the stakeholders.\u00a0 Once it is established, the leadership must take actions to address the information requirements of key stakeholders.<\/p>\n<p><strong>Appraise Supply Chain data collection abilities and resource requirements <\/strong><\/p>\n<p>The next step is to assess the competence of the organization\u2014and that of the suppliers\u2014to gather quality supply chain data.\u00a0 The executives should also evaluate the costs and resource requirements to enable improved information disclosure.<\/p>\n<p><strong>Determine the existing and desired levels of Supply Chain information <\/strong><\/p>\n<p>The third step is to ascertain the existing knowledge of supply chain information among the executives and suppliers. \u00a0The leadership needs to identify the desired levels of supply chain data collection and sharing capabilities, and invest to fill any gaps between the existing and desired supply chain data collection and sharing competencies.<\/p>\n<p>Interested in learning more about the remaining phases of the <a href=\"https:\/\/flevy.com\/browse\/flevypro\/supply-chain-disclosure-strategy-5114\">Supply Chain Information Disclosure Strategy<\/a>?\u00a0 You can download <a href=\"https:\/\/flevy.com\/browse\/flevypro\/supply-chain-disclosure-strategy-5114\"><u>an editable PowerPoint on <\/u><strong><u>Supply Chain Disclosure Strategy<\/u><\/strong><u> here <\/u><\/a>on the <a href=\"https:\/\/flevy.com\/browse\">Flevy documents marketplace<\/a>.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>. <a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here&#8217;s what some have to say:<\/p>\n<blockquote><p>&#8220;My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant&#8217;s toolbox.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it&#8217;s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients&#8217; benefits.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Supply Chain Management is getting more and more complex.\u00a0 The pressure on the Supply Chain information to be made public is also increasing day by day.\u00a0 With the popularity and widespread use of social media, it has become more and more difficult for organizations to hide information pertaining to supply chain practices, employees\u2019 treatment, suppliers\u2019&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/what-should-constitute-your-supply-chain-information-disclosure-strategy\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">What Should Constitute Your Supply Chain Information Disclosure Strategy?<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":6920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82],"tags":[2041,2011,2062,2042,136,2040,500],"class_list":["post-6816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-information-disclosure-strategy","tag-information-transparency","tag-strategic-information","tag-suppliers","tag-supply-chain","tag-supply-chain-information-disclosure","tag-supply-chain-management"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=6816"}],"version-history":[{"count":9,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6816\/revisions"}],"predecessor-version":[{"id":7819,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6816\/revisions\/7819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/6920"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=6816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=6816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=6816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}