Traceability Across The Value Chain - A New Competitive Ace
The Challenges of Supply Chain Management in the 21st Century
Companies across all sectors are under immense pressure to change the way they are managing their supply chain. On one side, the recent events that have disrupted the supply chain all over the world from a global pandemic to the warfare between Russia and Ukraine. On the other hand, consumers are looking at products through a new lens where their purchasing decisions are no longer limited to product specifications but extended to sustain- ability-related factors. Moreover, governments are trying to promote sustainable and transparent supply chains, hence enforcing laws concerning environmental and social aspects. Yet, neither brands nor consumers typically know what happens during a product's journey, and value is often diminished along the way. Thus, companies are left with no choice but to gain visibility over their entire value chain for more resilient and circular supply chains.
Where Do Egyptian Companies Stand on Supply Chain Traceability?
Egyptian companies seem to be lagging behind in this regard, and little effort is being directed toward integrating themselves into the global value chains. This is the situation despite foreign countries having stringent requirements around the importation of different products. At the same time, Egypt is trying to enhance the localization of its supply chains and incentivize its export champions to drive economic recovery. For example, Egypt targets to increase agricultural export volume by 15% in 2023 compared to 2022 through the introduction of the Agricultural Export development program. Moreover, the pharmaceutical industry is one of the industries that would contribute towards narrowing the trade gap, with goals to double the export of medical products (including pharmaceuticals) by 2023 from the 2020 levels.
How Can Companies Enable Traceability Across their Value Chain?
Companies are fully aware of the importance of gaining end-to-end visibility as evidenced by Bain's Global State of Traceability Survey in 2021, where 68% of executives viewed traceability as "very or extremely important". Yet, still, over 50% are at the early stages of exploration and at best have started to pilot the concept.
Accordingly, LOGIC Consulting proposes a three-pronged approach to how companies could implement traceability at scale to reap its multifaceted benefits.
A. Define a Clear Traceability Strategy
B. Identify & Prioritize Your Supplier Ecosystem
C. Establish Your Data Ecosystem
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