Supply Chain Transparency: The Growing Demand for Ethical Sourcing

By Sabrina Wang
February 2025

The world runs on information. Every decision you’ve ever made, whether it was about starting a new business or relationship, started with information that came from a source. That’s also probably why you’re reading this article right now: you heard from some nerdy guy that this piece of publication will help you excel in deca cases. Yet surprisingly, you’ve probably never wondered how that bottle of water on your table was created, and transported to you. If you knew, would you still drink it?

Supply Chain Tranparency is knowing where and how products are made, labor practices that are involved, and the journey that takes the products from one source to another (https://www.ibm.com/topics/supply-chain-transparency). What is often missed is the ability of Supply Chain Tranparency to bring consumers choices. A choice to choose between two companies, to decide whether they want to support a company with child labour or another without. This remains as the biggest reason that consumers, now more than ever, want companies to be transparent. And in fact, it’s a great opportunity for a company to promote the hell out of their ethical sourcing and sustainability. So then, why isn’t everyone doing it?

Truth is, supply chains were never meant to be transparent. In any industry that’s not a monopoly, companies are forced to stand out in at least one aspect to entice consumers. For the longest time, no one cared enough about children working for pennies in developing countries, or the depressed workers in China’s Iphone City. The biggest enticement was sales, quality, and physical appearance, whch didn’t need to come from paying adults $17.20/hour. And so, for many companies that survived through these eras, their supply chain's history would be better kept secret instead of having it land them a top spot in the news. 

The upside? For as long as any of these companies wish to stay relevant, they will have to  involve transparency. Consumers are now more focused than ever on ethical practices, with some willing to pay higher prices for ethical sourcing. But yes, there are always downsides. It’s already difficult to start a business, but now you also have to invest in technology that can provide you with sufficient information for tracking supply chains, look for ethical but pricey resources, and overall deal with what is an overall more expensive product to sell, where customers will scoff at the price tag. But realistically, supply chain transparency targets company giants the most, corporations who are already established enough to afford the choice of taking a more sustainable path, while still remaining somewhat profitable. 

It would be quite challenging to say the disadvantages outweigh the benefits of transparency. For starters, it’s probably about time we start addressing the most basic but pressing issues that are working conditions, exploitation, and environmental destruction. But even more so, forcing companies to embrace transparency also stimulates innovation, as they would have to look for other ways to beat competition: the only time companies will ever become creative. 

The bottom line is that supply chain transparency isn’t just a promotional stunt, or a buzzword. It’s about taking accountability for maneuvering resources given, and it highlights the importance of knowing origins of your daily necessities. For all the reasons that supply chain transparency promotes a brighter future, I’d have to give a point to humanity on this one. 

Source : https://www.ibm.com/topics/supply-chain-transparency