Despite increased regulatory scrutiny and sustainability demands, major transparency gaps are still evident across global supply chains, a new report by Achilles has found.
According to the Achilles Global Supplier Risk and Sustainability Survey, which gathered responses from more than 2,800 organisations across a variety of sectors, just 6% of companies have full visibility beyond their Tier-1 suppliers, while nearly half report ‘limited’ or ‘no’ visibility beyond their immediate supplier base.
“Supply chains today are more complex, more interconnected and more exposed to disruption than ever before,” commented Adam Whitfield, head of global compliance and ESG at Achilles. “Organisations are facing growing pressure from regulators, investors and customers to demonstrate transparency and accountability across their supplier networks.”
Increased scrutiny
This transparency gap comes at a time of increased scrutiny from policymakers on supply chain accountability, as well as external pressures around operational disruption and ESG performance.
Despite this, less than a fifth of respondents (18%), said that they were ‘very confident’ in the accuracy of supplier-reported safety data.
In addition, three quarters (75%) of respondents cited inconsistent regulations across different jurisdictions as affecting their ability to maintain consistent supplier standards.
The report also highlights growing concerns around supplier readiness and capacity, with close to three fifths of organisations expressing concern about the long-term availability of specialised suppliers, due to skills shortages, regulatory burdens and operational complexity.
Elsewhere, just 11% of organisations said that they believe their suppliers are ‘fully prepared’ to meet rising environmental and safety standards, with 64% noting that they believe their suppliers are ‘moderately’ or ‘mostly’ prepared.
Supplier risk management
“Our research shows that while many companies recognise the importance of supplier risk management, visibility across extended supply chains remains limited,” Whitfield added. “This creates uncertainty precisely where organisations need the greatest oversight, particularly as sustainability expectations and regulatory requirements continue to expand.
“Building resilience now requires more than periodic supplier assessments. Organisations need structured supplier data, consistent governance and continuous monitoring to identify emerging risks early and intervene before problems escalate.” Read more here.
