The document discusses supply chain transparency and key performance indicators (KPIs) for measuring supply chain risk. It notes that today's consumers demand greater product safety, quality and transparency in supply chains. It then describes a dashboard for measuring supply chain visibility, supplier transparency, food safety risk, social responsibility risk and other risks. The dashboard is meant to help companies measure how much revenue may be at risk due to issues in their supply chains and identify areas for improvement.

1. INTRODUCTION
There is a profound transformation taking place in food shopping and shopper
behavior. Consumers are faced with more choices than ever before when it
comes to buying groceries.
Blaine Becker, Sr. Marketing Director, Hartman Group
SUPPLY CHAIN SOLUTION
POWERED BY
Today, the global food industry is characterized by
growth: growing complexity, growing risks, more
and more crises and, as a result, a growing need for
consumer trust. With the rise of the well-informed
and ever-connected shopper, brand owners need—
now more than ever—to instill confidence in their
consumers in order to secure brand loyalty. Increased
governmental regulations and food crises have led to
an increased demand for product safety and quality.
A product that fails to fulfill this demand has little
chance of making its way off the shelf and into the
home. Essentially, we are all consumers and we
want to trust the brands we buy, believe in the labels
we read, keep our families healthy and shop with
confidence.
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2. KEY PERFORMANCE INDICATORS
Real-life examples of progressive companies’ reporting are valuable in demonstrating
the breadth of content and quality of presentation that can be achieved. The following
metrics were chosen based on their ability to align industry KPIs with specific corporate
strategies and objectives.
VISIBILITY
• How much information is available about a product
supply chain
• Visibility decreases if information about the product
is missing or if a supplier hides information about
ingredients or origin
THE CHALLENGE
In today’s world we need to monitor our supply chain and
measure our product compliance to drive consumer trust.
• But how do we achieve this?
• How do we know who is in our supply chain?
• Are there unknown sources upstream?
• Are the growers compliant with the produce safety rule?
All of these unanswered questions boil down to the two key challenges:
identifying ingredient risks and supplier risks.
TRANSPARENCY
• How much information does the supplier share
about the products
• Transparency decreases if the supplier fails to
share information about all products and their
ingredients’ origin
2
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3. THE DASHBOARD
REVENUE
Products at Risk
7.2 $bn -10%
?
60%
PRODUCTS
Average visibility
6843
?
78%
SUPPLIERS
Average Transparency
1140
?
63%
FOOD SAFETY
Products at Risk
3.1 $bn 0%
?
30%
+20%
CORPORATE SOCIAL
RESPONSIBILITY
Products at Risk
4.3 $bn
?
80%
RESILIENCE
Products at Risk
1.1 $bn -10%
?
12%
-10%
EXPOSURE
Products at Risk
1.7 $bn
?
15%
Discovery (not fully visible)
Compliance Structure
With the SGS Supply Chain Solution, transparency reporting addresses the biggest supply chain risk factors, which
are broken down into three key dashboards:
1.
DISCOVERY:
Do I have enough visibility
in my supply chain?
2.
COMPLIANCE:
Is my supply chain compliant?
3.
STRUCTURE:
Does my supply chain have
the optimal structure?
Supply chain risk goes well beyond current E.U. and FSMA regulations. When taking into
account the need to build brands, grow business, and driving consumer trust, the supply
chain is today’s biggest risk.
3
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4. 4
REPORTING
Each of the three top line sections answers key questions
about the effect the supply chain may have on the business.
REVENUE
Products at Risk
7.2 $bn -10%
?
60%
PRODUCTS
Average visibility
6843
?
78%
SUPPLIERS
Average Transparency
1140
?
63%
FOOD SAFETY
Products at Risk
3.1 $bn 0%
?
30%
+20%
CORPORATE SOCIAL
RESPONSABILITY
Products at Risk
4.3 $bn
?
80%
REVENUE
Products at Risk
7.2 $bn -10%
?
60%
PRODUCTS
Average visibility
6843
?
78%
SUPPLIERS
Average Transparency
1140
?
63%
FOOD SAFETY
Products at Risk
3.1 $bn 0%
?
30%
+20%
CORPORATE SOCIAL
RESPONSABILITY
Products at Risk
4.3 $bn
?
80%
PRODUCTS
Average visibility
6843
?
78%
SUPPLIERS
Average Transparency
1140
?
63%
RESILIENCE
Products at Risk
1.1 $bn -10%
?
12%
-10%
EXPOSURE
Products at Risk
1.7 $bn
?
15%
RESILIENCE
Products at Risk
1.1 $bn -10%
?
12%
-10%
EXPOSURE
Products at Risk
1.7 $bn
?
15%
REVENUE
FOOD SAFETY
PRODUCTS
CORPORATE SOCIAL RESPONSIBILITY
SUPPLIERS
RESILIENCE
EXPOSURE
Don’t know all of the products in your supply chain?
Let this report show you how much of your revenue is at risk. The report
measures the financial risk associated with lack of complete knowledge about
the supply chain.
How much of your business will be impacted by a crisis?
This report will show you how much revenue could be at risk in a food safety
incident. The report measures unsafe facilities and dangerous ingredients and is
based on Food Security Index Data.
Do you have supply chain visibility for all of the products in your
portfolio?
This report will show you how many products are missing a visible supply chain
and measures this lack of visibility by product.
How much of your business will be impacted by the social issues
consumers care about?
This report measures the risk of social incidents such as child labor, modern
slavery, and sustainability issues. The report measures high social risk supply
chains by country and is based on BSCI Data.
Have a lot of suppliers in your network?
Let this report tell you how many of them are not transparent when it comes
to factory, ingredients, and origins. This report measures lack of supplier
transparency in the supply chain.
How much of your business depends on a single supplier?
This report reveals how much of your revenue is tied to a single supplier and
measures the risk associated with being highly dependent on one supplier.
Do you know how much of your business is exposed to political or
regional price fluctuations?
This report measures the risk of supply chain disruption and raw material price
volatility. This report is based on country and political risks and is calculated from
World Bank, World Risk Report.
DISCOVERYCOMPLIANCESTRUCTURE
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5. CONTROL
Data is collected in a precise and accurate manner to constantly improve
processes. Integrated global information is computed in a way that allows
organizations to adapt quickly to improve supply chain quality and safety.
Overall, the SGS Supply Chain Solution is a tool to ensure that strategic direction is set
across the complete organization, with defined accountabilities, responsibilities, and
product safety as business enablers.
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6. CONTACT
POWERED BY
For more information please visit
www.sgs.com/SupplyChain
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