KPMG in the Netherlands and software provider ChainPoint announced a formalization of their collaboration to provide increased transparency of organizational supply chains.
The alliance aims to support companies in their transformation toward becoming socially and environmentally responsible for their entire supply chain.
“Many companies have made far-reaching promises over the past five years about achieving their 'sustainable development' objectives,” says Jerwin Tholen, partner and supply chain transparency expert at KPMG in the Netherlands. Tholen: “These objectives will actually have to be achieved in the coming decade. New legislation, such as the Modern Slavery Act, the conflict minerals regulations and EU's Green New Deal means that companies should know the origin and content of their products and services. In addition, we see increasing pressure from consumers on organizations to respond to the influence of Covid-19. The pandemic has had a major impact on consumers both financially and emotionally. Consumers want more value for money and to spend their money with organizations that have earned their trust and mirror their own personal values. Managing supply chains effectively is essential to gain consumer confidence reduce risk and lower costs”.
Companies will increasingly face critical questions when it comes to the supply chain. Johan Zandbergen, CEO of ChainPoint explains: “A fair payment to farmers who are part of the supply chain or a guarantee that there is no Amazon hardwood in products are examples of questions that organizations must be able to answer. A sustainable supply chain means a strong organization-wide knowledge of and insight into these chains. Both direct suppliers and the corresponding networks attached to them must be mapped and understood. Many companies often do not have the right knowledge or systems in-house to set this up professionally. High-quality data is a requirement for clear insight into the entire length of supply chain.”
Insight into complex supply chains
Tholen adds: “The technology that ChainPoint offers, provides insight into long and complex supply chains and allows for the proper management of these chains.” ChainPoint has a cloud-based software that can be used to collect and manage data effectively. Long, complex and global supply chains require the integration of different suppliers and systems – ChainPoint’s platform offers this possibility. It is flexible and can link very diverse suppliers together to give a more holistic picture. In addition, the software can selectively share sensitive and confidential information to help motivate collaboration through the supply chain.
ChainPoint’s software has a strong track record , as the company has successfully implemented their system for well-known organizations such as the Better Cotton Initiative, Rainforest Alliance and Tony's Chocolonely. ”
The Chainpoint platform has been effectively applied in more than a hundred different supply chains for over fifteen years,” says Johan Zandbergen. “The fit with KPMG's expertise in system integration and risk mapping is therefore ideal to provide full scope integrations. Since the platform is built to be flexible and adaptable, new legal requirements, such as the EU Green New Deal, can be quickly incorporated. The collaboration with KPMG makes it possible to offer companies high quality solutions with increased speed and scale.”