7 Supply Chain Traceability Challenges
Sustainability and ESG, Thursday, December 18th, 2025
Supply chain traceability faces challenges, like data fragmentation and poor visibility, that complicate compliance with regulations on sustainability and human rights.
Increasing consumer demand for transparency on products' origins and creation processes, combined with an evolving regulatory landscape, force organizations to better understand their supply chains.
While this exercise can be daunting, it can also produce significant results, including better business continuity, resilience and security, and improved sustainability. However, only 9% of organizations follow new laws related to environmental concerns and human rights, according to the October 2024 study "Supply chains: Still vulnerable" from McKinsey & Company. In fact, 30% of respondents conceded they were behind or significantly behind on complying with these regulations.