TECH & AI
have ,” she says . “ Much of this is because of the absence of scalable due diligence systems that can touch the entirety of the supply chain .”
Melnyk cites a 2020 report published by the European Union , in which just 36 % of surveyed companies said they publicly disclose the processes they follow to prevent human rights risks and violations throughout their supply chains – and that even fewer follow such protocols when it comes to upstream .
“ Such ineffective monitoring can be solved through a combination of stronger mandatory due diligence legislation and new technology , including the use of blockchain .
“ Until recently , the highly analogue nature of the upstream part of global supply chains meant most companies were relying only on social audits to identify risks , whereas supply chain due diligence calls for a stronger combination of smart measures , including engagement with stakeholders , proactive monitoring and target setting .”
Melnyk points out that although the market for socially responsible supply chain tools is expected to reach US $ 2.7bn over the next five years , “ many supply chain tools
102 September 2022