Wonder

Research Outline

Prepared for Dmitry A. | Delivered August 12, 2020

Supply Chain Transparency and Traceability Market

Goals

To inform the business case for unit-level supply chain transparency and traceability to obtaining an overview of the supply chain transparency and traceability market, including an analysis of key players in this emerging space (e.g., Amazon Transparency, Prevanance.org) as well as examples of how major public companies are implementing unit-level QR codes on products to provide transparency into their supply chains and fight counterfeit products.

Early Findings

Supply Chain Transparency and Traceability MarketAccording to August 2019 reporting by the Harvard Business Review, supply chain transparency is a "growing business imperative" that was "virtually unknown 15 years ago."
Although there appears to be limited publicly available, pre-compiled information about the size and growth rate of this emerging market, Harvard adds that companies are highly motivated to follow this emerging trend.
Notably, a major driver behind the market is the fact that consumers are willing to pay 2%-10% more for products associated with providing greater supply chain transparency, per research from the MIT Sloan School of Management.
Additionally, companies are "under pressure" from government, non-governmental organizations and the larger public to provide more information about their supply chains, and face significant operation as well as "reputational costs" for failing to provide such information.
The Harvard Business Review adds that well-known corporate innovators in supply chain transparency and traceability include:
Patagonia, and the company's Footprint Chronicles map.
VF Corporation, which discloses supply chain information down to its suppliers and raw materials.
One Degree Organic Foods, whose cereal products are "fully traceable from farm to spoon."
Red's Best, which uses QR codes on packaging to sell seafood products that are traceable to the fishing vessel.
Nike, which offers details into their individual factories.
Marks & Spencer, which provides "interactive mapping of its food and apparel manufacturers."
Companies Implementing QR Codes for Transparency/TraceabilityBeyond Red's Best and One Degree Organic Foods, other companies that are using unit-level QR codes to facilitate transparency and traceability include:
 Intermarché, which introduced QR codes on its St. Eloi green bean brand.
 Carrefour, which is introducing QR codes on meat products to report the "product's entire life span."
Key CompetitorsMeanwhile, beyond Amazon Transparency, other key competitors in this space include:
 Transparency-One 
 Sourcemap 
 IBM 
 Digimarc 
Meanwhile, although details related to Prevanance.org appear to be unavailable, there is a company named Provenance that provides transparency/traceability technology.