Multi-tier supply chain transparency: The future is now

The global supply chain landscape is undergoing a significant transformation as companies face increasing demands for transparency and traceability across their supply chain networks. Regulatory requirements and shifting market expectations are driving organizations to rethink how they gather and verify data from their suppliers to ensure compliance, mitigate risk, and build sustainable practices.

Why multi-tier transparency matters now

The demand for multi-tier transparency has accelerated due to a combination of regulatory mandates and growing consumer awareness. Key regulations reshaping supply chain expectations include:

• Uyghur Forced Labor Prevention Act (UFLPA)
• European Union Deforestation Regulation (EUDR)
• Digital Product Passport (DPP)
• French Environmental Cost initiative

These regulations are not just formalities; they carry significant consequences, including financial penalties, reputational risk, and even restrictions on selling in specific markets.

Challenges in achieving multi-tier transparency

Achieving deep supply chain transparency is complex and laden with hurdles. Suppliers face a myriad of diverse data requests in multiple formats, and can create inefficiencies and added cost. As buyers work with suppliers to embrace new transparency practices, they must address supplier hesitation, provide ongoing support, manage expanding data sources, internal processes, validation checks, and much more.

Many industries are also under intense pressure to deploy traceability systems rapidly—unlike other sectors that had years to adapt. These obstacles underline the need for thoughtful investment, stronger collaboration, and innovative solutions to build truly transparent supply chains.

How technology, AI, and networks are transforming transparency

Today, technological advances are reshaping the transparency journey. Platforms such as Infor Nexus™, a leading multi-enterprise supply chain business network, help organizations improve visibility and collaboration across global supply chains. These networks create a single, secure hub where suppliers can share data once and make it available to multiple stakeholders. Artificial intelligence (AI) streamlines onboarding by intelligently integrating unstructured reports and data sources, and automating complex traceability tasks. These breakthroughs are turning transparency from a daunting challenge into a manageable, scalable reality.

Business benefits beyond compliance

Transparency is more than a regulatory requirement—it is a strategic advantage. Faster access to trustworthy data lets companies respond quickly to risks and audits, turning months of work into days. At the same time, building transparency through digital product passports creates opportunities to engage consumers with clear, verifiable insights into product origins and sustainability—fostering trust and loyalty.

This commitment to transparency also strengthens supplier collaboration, fostering trust and building resilience across the supply chain. With early visibility into deeper tiers, companies can anticipate disruptions and navigate them with greater agility and optimize inventory accordingly. Meanwhile, identifying key sourcing opportunities and streamlining networks drives sustainability and cost reduction, making transparency a powerful enabler of both growth and responsibility.

Starting the journey: Actionable recommendations

Starting your transparency journey today is critical, regardless of where you stand now. Establishing dedicated, cross-functional teams ensures accountability and momentum. Understanding supplier challenges and simplifying data requests build cooperation and improve data quality. Leveraging modern networks with AI-driven technology makes scaling traceability feasible and efficient. These practical steps set the foundation for progress and position your organization to meet the demands of an increasingly transparent global value chain.

Looking ahead

Multi-tier transparency is an extension of supply chain operations that demands proactive leadership, strategic investment, and collaboration. The regulatory landscape continues to evolve rapidly, and the time to act is now. Early adopters will gain more than compliance—they will build a competitive advantage through enhanced visibility, stronger risk mitigation, improved sustainability, and deeper consumer engagement.

Watch the full discussion in our Across the Chain video series.

Across the Chain | Episode #1: Managing Multi-Tier Transparency