Future of Supply Chain

Consolidation Layer

Supply chains are more than just a “one to one” relationship between a buyer and a seller. This relationship also relies on external services like quality assurance, certifications, transport & logistics, insurance and many others. These 3rd party services are not directly a part of the product value creation but nevertheless in many cases mandatory for making the trading process flow. Buyers, sellers and 3rd party service providers are all part of the supply chain ecosystem and their ability to collaborate is paramount.

The Consolidation Layer on Tradeshift is the technical service enabler and prerequisite for collaboration and data sharing between account holders on the Tradeshift platform. It also creates the ability for 3rd parties, who are not on the platform, to collaborate with peers in their supply chain ecosystem. As a part of our Tradeshift Pulse Vision, Consolidation Layer is one of the cornerstones of how we envision the evolution of supply chains. 

Designed to meet the needs of future supply chains, Consolidation Layer makes it possible to share data within four important categories: transparency, footprint, integrity and traceability. Those four categories are the foundations of one of the most interesting subsets of Future of Supply Chain: Sustainability.

Foundation of Sustainability

Transparency

Transparency refers to knowledge about participants in the supply chain and their active role in the value chain. A basic start is knowing the metadata of the vendors in the supply chain. Another basic element of transparency is what type of impact they create.  Once we know the actor’s the next layer of data describing their behavior can be applied. Moreover, providing finance and early payments to suppliers requires in-depth knowledge of sellers—hence the need for transparency.

Footprint

Supply chain footprint refers to the environmental footprint that the enterprises leave behind. A typical one is greenhouse gas emissions, others include environmental hazards like deforestation. Within ESG reporting (environmental, social, and governance)   this metric delivers information on the “E” or “environmental” part of the larger ESG metric.

Scope 3 emissions can be calculated based on the invoices and purchase orders from any given commerce relationship. Choose to set up invoices, to hold emission statements, to create visibility on how the environmental impacts in your supply chain act out per supplier, and per invoice. This type of data can pave the way for access to green financing.

Integrity

Supply chain integrity is all about getting insights into supplier behavior—primarily forced or child labor. It is an essential part of the “S” and “G” in the ESG metric, delivering information on company social and governance performance.

As a more soft metric and one that it is often hidden from buyers, it can be hard to measure directly. However, via the platform, we are able to provide your company with guidance on where and when to deploy extra caution and due diligence.

Traceability

Covers the ability to display data for tracing and tracking of products both upstream towards the manufacturer, or downstream towards the end-user. Traceability data is a core prerequisite when delivering information on product provenance or authenticity—the ability to trace products backwards from consumer to producer, and to tap into recorded transparency data and event data when necessary, is key when delivering insights for proving that the product is safe.

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