Full transparency is coming to your manufacturing business. People are demanding it. Technology is enabling it. The 2021 supply chain disruptions demonstrated the need for it.
So what does that mean for your manufacturing business?
If you’ve always been open and trustworthy, it becomes a competitive advantage. If not, either change your behaviors or pay the price.
You have 5 constituencies that are gaining better insights into the actual core values and mission of your company. Will employees be attracted if, like Amazon, you are known to provide poor working conditions and fire for little to no reason? Will suppliers want to work with you, if like GE, you are known for unilaterally extending payment terms and refusing to buy inventories that the contract specifies? Will communities want you to move there, if like Foxconn, you are known for false promises? If customers know how you source materials, will they be attracted, or know that your core values do not extend beyond your property lines? Can investors trust the information you provide, or will they be reminded of Pollyanna?
Transparency is a competitive advantage for some, and can be for anyone who is trustworthy and lives attractive core values. It will kill other manufacturing businesses. Which are you?