Final answer:
Visibility and transparency in the supply chain refer to the accessibility of real-time information and its open distribution, which are crucial for efficient operation, cost control, and market stability especially during crises like pandemics. They also help protect labor rights and enable sustainable and fair supply chains by fostering global competition and innovation.
Step-by-step explanation:
Visibility and transparency along the supply chain are critical components in managing the flow of products, information, and finances from the origin to the end consumer. Good visibility means that stakeholders have access to real-time information about the status of products as they move through the supply chain. Transparency implies that this information is readily available and can be used for tracking and making informed decisions. This is important because it allows for better coordination among different parts of the supply chain, enables more efficient and responsive operations, and reduces the risk of disruptions.
Especially during unforeseen events like the COVID-19 pandemic, companies with high supply chain visibility and transparency were better able to adapt to shutdowns and maintain operations, albeit sometimes at a reduced capacity. This helped them to control costs and prices, and it ensured a more stable market presence. Increased transparency also aids in protecting labor rights by making it easier to monitor working conditions and enforce labor policies. In the longer term, enhanced visibility and transparency contribute to fairer and more sustainable supply chains by breaking monopolistic structures and promoting competition and innovation.
Finally, sharing information and new technologies with developing countries fosters the creation of more sophisticated and efficient supply chains globally. This makes the international markets more competitive and helps to ensure that all countries can benefit from advancements in supply chain management.