Procurement Magazine September 2024 | Page 185

Challenges facing the transparency demand While this is vital , it comes with its challenges . Lars outlines the issue which organisations face .
He says : “ Companies try to be too ambitious starting out , such as aiming to map out the entire supply chain for various products , which can be a daunting task given the numerous steps and suppliers involved . Tracking two or three steps back can already be complex , let alone trying to trace everything down the line .”
There is also the mismatch between the desire of the business and its actual outcome . Organisations might strive to have a comprehensive understanding of the supply chain , investing in resources to map out every detail . But they can overlook that a basic overview can address most of their needs .
LeanLinking states that about 80 % of the issues faced can be resolved with just 20 % of the data . Focusing on the first few steps that bring the most value , such as tracking three links back , can be more effective and efficient .
There is also the risk of overcomplicating the process , leading to wasted resources and efforts . Lars adds : “ Instead of aiming for perfect transparency from the start , companies should prioritise the most critical data that will solve the majority of their cases .”
This focused approach can deliver significant benefits without the overwhelming complexity of a fully mapped supply chain .
Lars continues : “ Companies face challenges in establishing supply chain transparency due to overly ambitious goals and a misalignment between their desires
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