Why Trust Matters in Supply Chains
Recent disruption to global supply chains due to pandemics, interstate conflicts, logistical shortcomings and labor disputes have hit both businesses and governments hard, forcing policy-makers and corporate executives to focus on the need for resilience and security. As companies have become increasingly reliant on suppliers worldwide to provide the goods and services they need to operate in a globalized economy, this reliance has complexified supply chains, making them more challenging to manage and increasingly vulnerable to disruptions. One of the biggest challenges in managing supply chains is ensuring trustworthiness, particularly because of the increasingly interconnected and interdependent relationship in the globalized economy. From raw materials to end-use products, when one company in a supply chain breaks its promises or fails to deliver on its commitments, it can have a ripple effect that impacts the other companies throughout the network.