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Gauge ESG risks in your supply chain through traceability

Introduction: An overview of the supply chain

In recent times, the worldwide supply chain has faced significant disruptions caused by factors such as the COVID-19 pandemic-related shutdowns and restrictions, political shifts, upheavals, and the changing dynamics of the business environment. Global supply chains face mounting pressures for transparency and compliance; managing risks has never been more critical. With pressure increasing on businesses to make their operations more climate-responsible, traceability emerges as a tool for managing risks.

From social responsibility mandates to environmental concerns like carbon emissions, biodiversity destruction, and labour rights, traceability emerges as a pivotal tool to navigate this complex landscape—risks about origin, quality of ingredients, procurement detailing, supplier evaluation on ESG standards, etc. is vital to measure. Measuring is essential; a company cannot change what it cannot measure. But once a business has a clear picture of its sustainability goals, it has to achieve these – which is the difficult part. Supply chain visibility is critical in this picture. 

This blog delves into a five-pronged strategy, leveraging traceability capabilities to enhance supply chain risk management.  

Five-pronged approach to risk management

As supply chains are under increasing scrutiny for transparency and adherence to compliance, effective risk management is paramount. The demand for social responsibility and environmental consciousness, due to the complex  global supply chains, necessitates a robust approach. Here’s a five-pronged approach towards risk management: Collect data, consolidate data, analyse, report findings and mitigate risks.

A. Consolidating data - The foundation of risk assessment:

In our interconnected world, risk management begins with comprehensive data collection. Traceability tools play a crucial role by providing real-time data, consolidating them and  offering insights into every facet of the supply chain. This includes tracking raw material origins, gathering information from direct suppliers, transaction info, certification details, etc. 

B. Organising - Mapping data of Tier 1 Suppliers:

Once data is amassed, the challenge lies in structuring and organising it effectively. Traceability tools streamline this process, creating a well-organised repository. A structured database forms the backbone for making informed decisions, providing a coherent understanding of the supply chain’s nuances and offers insights on potential risks.

C. Analysing risks with multi-tier supply chain mapping:

Organising multi-tier data of suppliers sets the stage for the critical phase of analysis and identification. Traceability tools enable businesses to scrutinise their supply chains, revealing potential risks and vulnerabilities. This proactive approach enables stakeholders to address issues in their nascent stages, fostering a resilient and risk-aware supply chain.

D. Identifying risks through advanced batch-level product traceability:

At this stage, we pinpoint risks related to origin, product quality, and inadequate documentation. Using our advanced analytics, we evaluate compliance and ESG risks associated with each product batch.

E. Leveraging traceability for risk mitigation:

With the insights from all the stages, the final prong is risk mitigation. Traceability tools not only pinpoint risks but also propose strategies for mitigation. Whether it involves adopting alternative sourcing strategies, improving certification data, fortifying compliance measures, or enhancing due diligence efforts, traceability guides businesses in making informed and practical actions.

Supply Chain Transparency for ESG Reporting

Traceability and transparency in supply chains can help companies prevent, identify, and mitigate potential risks and improve traceability scores for better operational efficiency. Collecting data, organising suppliers’ information, batch-level supplier traceability data, evaluating risks on sustainability grounds, risk score high or low, alerts for insufficient certification criteria, and suggesting improvement measures and certifications/document checklists to strengthen transactions are all ways to improve supply chain risk management. RightOrigins- our AI-powered Supply Chain Traceability and ESG Intelligence suite integrates features such as supply chain actor score, transaction score in terms of documentation, and sourced product batch score for enhanced ESG reporting. 

Benefits of leveraging Supply Chain Traceability

Leveraging traceability information is key to pinpointing susceptible points in the supply chain and implementing strategies to mitigate potential risks. This may involve introducing quality control measures, strengthening supplier relationships, and diversifying sources. RightOrigins, platform encompasses applications that promote visibility, traceability, and resilience throughout your supply chain. The risk assessment platform provides a competitive edge and ensures visibility, paving the way for ESG compliance.

How does the RightOrigins platform help with risk management?

Our platform serves as a tool for businesses to gauge, oversee, and enhance their sustainability reporting, aiming to foster eco-friendly supply chains and mitigate environmental and social risks. We help in the following ways to monitor and manage risks.

1. First, map out the supply chain by aggregating supplier info and identifying potential risks in the supply chain by conducting a thorough risk assessment.
2. Companies should then assess the impact of each risk to understand its potential effect on the business. Our platform delivers actionable insight into ESG scores and delivers automated sustainability reporting (including customer questionnaires).
3.Then, develop risk mitigation strategies, which include enhancing the score and improving the strength of transactions through valid documentation, certifications, etc., for continual improvement of supply chain performance.


The function of traceability in risk management becomes crucial as supply chains develop into complex worldwide networks. Traceability acts as a compass for organisations navigating the intricacies of contemporary supply chains, from data gathering to systematic analysis and proactive risk mitigation. By adopting this five-pronged strategy, compliance is guaranteed, as well as resilience in the face of a dynamic environment. CIED provides a platform for businesses to measure, monitor, and improve their ESG reporting to promote sustainable supply chains and reduce environmental and social risks.

We can help map your supply chain data for analysing risks. Are you ready to get started?

To learn more about how RightOrigins, our AI-powered Supply Chain Traceability and ESG Intelligence suite can
support your ESG & Sustainability goals for 2024 & beyond, consult with our in-house expert.

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