Consumers expect companies to source and produce goods ethically and sustainably. Everyone is familiar with certain aspects of supply chain sustainability and ethical production programs. These include maintaining air and water quality, reducing water use, using land and other natural resources responsibly, and producing and releasing less toxic waste. But there are other important factors to consider, too, such as human rights abuses and child labor in the supply chain.

While brand risk remains a significant threat for companies that don’t have full visibility into their supply chains, regulatory risk carries the potential for huge fines. In addition, regulatory risk can quickly morph into reputational risk, compounding an already serious problem as headlines about seizures and violations kill stock prices, scare off consumers and create pressure for a change in company leadership.

The ability to quickly trace a product to its source via an automated supply chain execution system is necessary in these circumstances. Companies that implement a consolidated global trade management solution that connects the trading partner community with product data and retailers’ purchase orders can achieve better results. A software solution for global sourcing and supply chain collaboration can help brands get visibility into key aspects of their sourcing and production operations.