Modern consumers are concerned about more than quality and price of the products they purchase. They demand concrete and credible information about the entire procurement process. Unsubstantiated company statements on the sustainability and safety of sourcing processes have proven to be insufficient to meet those demands (Hofstede, 2003). More and more companies increase the transparency of their supply chain (SC). However, in order to reach customers and to fulfill their needs, companies have to effectively communicate supply chain transparency (SCT) to the end consumer (New, 2010).
This thesis focuses on transparency in the apparel and food industry because especially here consumers claim insights into the global supply networks (Meise, 2011, p. 138). It analyzes tools to enable SCT and provides an overview of practical methods that are available to the apparel and food industry for communicating transparency to consumers. Moreover, the paper evaluates these methods based on their effectiveness at meeting consumer demand and illustrates how different approaches for enabling and communicating SCT can be combined. The presented information was obtained through extensive literature research and website analyses. An exhaustive review of the particular laws and regulations relating to transparency is out of the scope of this thesis.
First, this paper defines the concept of SCT and analyzes current consumer demand in the apparel and food industry. It explains how certain industry characteristics and recent SC scandals drive this demand. The following chapter deals with tools and methods employable by producers to gain the necessary information for fulfilling consumer demand. On the one hand, tracking and tracing within a supply network is analyzed. On the other hand, two methods for analyzing SC sustainability are addressed. In a next step, this thesis evaluates different approaches to how apparel and food companies can communicate the demanded information to consumers and, thereby, make SCs more transparent. In doing so, the concept of labeling in the apparel and food industry is analyzed. Subsequently, the use of company websites and social media for supplying customers with SC information is addressed as well. Before drawing a conclusion, the paper proposes a framework that shows how methods for obtaining SC information can be integrated with different communication channels to meet consumer demand for SCT.
Table of Contents
1. Introduction
2. Consumer demand for transparency
2.1 Definition of supply chain transparency
2.2 Relevant industry characteristics and developments
2.3 Scandals driving the need for information
3. Practices to enable transparency
3.1 Tracking and tracing
3.2 Methods for analyzing supply chain sustainability
3.2.1 Life-cycle assessment
3.2.2 Higg index
4. Approaches to communicate supply chain information to consumers
4.1 Product labeling
4.1.1 Current approaches
4.1.2 Consumer dissatisfaction
4.1.3 Evaluation criteria of green labels
4.1.4 Developments in the eco labeling landscape
4.2 Company dependent communication channels
4.2.1 Websites
4.2.2 Social media
4.3 Integrated solution for communicating transparency
5. Conclusion
Research Objectives and Focus
This thesis examines the increasing demand for supply chain transparency (SCT) within the apparel and food industries, driven by consumer concerns regarding product provenance, safety, and ethical sustainability. The research aims to identify and evaluate technical methods for enabling transparency and practical communication channels for conveying this information to the end consumer, ultimately proposing an integrated framework that leverages third-party verification to foster trust.
- Analysis of consumer demand and key drivers for transparency.
- Technical evaluation of tracking and tracing methods (RFID, genetic markers).
- Assessment of sustainability measurement tools like Life-cycle assessment (LCA) and the Higg index.
- Evaluation of communication channels including product labeling, corporate websites, and social media.
- Development of an integrated framework for credible consumer communication.
Excerpt from the Book
Tracking and tracing
In order to establish SCT, the produced goods need be traceable throughout the entire SC. Especially in the food industry traceability is a major issue for consumers (Kelepouris et al., 2007). Product tracking refers to the ability to determine when and where a specific item was produced/processed and to identify its current location (Fritz and Schiefer, 2009). In the case of product deficiencies, tracking is a necessary condition to assess which other units might be damaged and need to be withdrawn from the market. Tracing deals with determining the origin of a certain unit’s raw materials and the subsequent processing of this unit. It also refers to the identification of all suppliers related to the production of specific units.
Fritz and Schiefer (2009) differentiate between backward and forward traceability. The first deals with identifying a product’s initial origin. Backward tracing of deficient products helps to reveal the source of a deficiency. The latter refers to identifying a product’s future steps in the SC and its (final) destination. Once backward tracing has determined the sources of deficiencies, companies can employ forward tracing to assess which other product units might be affected. According to Kelepouris et al. (2007), traceability requires all SC partners to support product identification in order to ensure the gapless tracking of goods.
In combination, tracking and tracing (TT) foster coordination between SC members and can enable companies to efficiently and effectively respond to product deficiencies by promptly recalling the affected units. The better a TT system works, the lower the costs of product recalls are (Fritz and Schiefer, 2009). As pointed out in chapter 2.2 and 2.3, SC members have lost oversight of the supply network as a whole, which results in decreased consumer trust. TT tools support companies to regain oversight. Consequently, by communicating the existence and functionality of such traceability systems, they can restore consumer trust. Yet, as van Dorp (2004, p. 6) points out, many producers fail to implement appropriate TT practices. New (2010), however, predicts that companies will increasingly demand traceability from their suppliers.
Summary of Chapters
1. Introduction: Introduces the growing consumer demand for supply chain transparency and outlines the research objective to analyze methods and communication strategies in the apparel and food industries.
2. Consumer demand for transparency: Defines supply chain transparency from a marketing perspective and analyzes how industry trends and major scandals have heightened the need for information among consumers.
3. Practices to enable transparency: Examines technical tools for traceability and sustainability analysis, focusing on RFID, genetic markers, life-cycle assessments, and the Higg index.
4. Approaches to communicate supply chain information to consumers: Evaluates the effectiveness of various communication channels, specifically labeling, corporate websites, and social media, while addressing current deficits in credibility.
5. Conclusion: Summarizes the necessity of combining technical tools with independent third-party verification to effectively meet consumer demand and restore trust in global supply chains.
Keywords
Supply chain transparency, apparel industry, food industry, tracking and tracing, RFID, life-cycle assessment, Higg index, product labeling, consumer trust, traceability, sustainability, procurement, greenwashing, ethical sourcing, provenance.
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The thesis focuses on supply chain transparency (SCT) within the apparel and food industries, specifically addressing how companies can meet the growing consumer demand for credible information regarding the sustainability and provenance of their products.
What are the primary industry sectors analyzed?
The study centers on the apparel and food industries, as both sectors face significant supply chain complexity and high consumer concern regarding product safety and ethical production standards.
What is the main research objective?
The goal is to evaluate various tools and methods for enabling transparency and to determine how companies can effectively communicate this information to consumers to build trust and meet demand.
Which scientific methods are utilized in this work?
The research is based on extensive literature review and systematic website analysis of companies to assess current practices, transparency strategies, and communication channels.
What topics are covered in the main section?
The main section covers technical traceability tools (RFID, genetic markers), sustainability measurement methods (LCA, Higg index), and an evaluation of communication approaches like product labeling, websites, and social media.
Which keywords best describe the paper?
The paper is characterized by terms such as supply chain transparency, traceability, RFID, life-cycle assessment, consumer trust, product labeling, and ethical sourcing.
Why is traceability important in the food industry according to the author?
Traceability is critical in the food industry to mitigate health risks, manage product recalls efficiently, and provide consumers with confidence in the safety and origins of their food following various safety scandals.
How does the author propose to solve the credibility gap in communication?
The author proposes an integrated framework that combines technical tracking methods (like RFID) with independent third-party verification, ensuring that information provided to consumers is credible and standardized.
What role does technology like RFID play in the proposed framework?
RFID technology serves as a key tool to gather data on product provenance and sustainability, providing a technical foundation that allows consumers to easily access verified information via smart devices.
- Citation du texte
- Marcus Fuchs (Auteur), 2014, Supply Chain Transparency in the Apparel and Food Industry, Munich, GRIN Verlag, https://www.grin.com/document/299990
