Meeting Retailer Demands in the Modern Supply Chain
The concept of “compliance” has either created fear within some people or has been used as a vehicle by some to drive a more effective risk-based system of monitoring and due diligence. When we talk about compliance, it’s often synonymous with audits or certification; however, in the broader context of the food value chain, compliance is the foundation for adherence to legal requirements and is the most used tool to establish potential risks/gaps within business management practices.
From food contamination scandals worldwide, product recalls, and unacceptable treatment of workers in factories to severe climate impacts due to ineffective environmental practices, the world is much more focused on sustainability and good practices today. And for good reason!
The drive towards realistic compliance in the modern supply chain is fuelled by the increasing demands of consumers and retailers for transparency, environmental responsibility, and ethical labour practices. The consumer abroad is much more conscious of where a product comes from, the conditions under which it was produced/manufactured, and whether the quality meets the reality of its environmental impact. This is supported by international legal frameworks such as the EU Due Diligence Directives, the UK Modern Slavery Act, and more. These aim to keep the value chain responsible for practices in our global interconnected world.
A modern way of compliance – transparency and visibility
Compliance has become exceptionally important globally, especially for retailers and buyers sourcing worldwide. The concept of compliance has been the primary tool for managing risk within a supply chain, but it has become a way of life. Consumers are driving responsibility and demanding companies take ownership when claiming responsible sourcing and reporting the impact of their suppliers on the environment. Buyers are consistently challenged by ensuring they meet the consumer’s demands, which must be supported with credible data and proof of sustainability interventions, such as social and environmental audits. Buyers are further required to meet global legislative frameworks, making reporting on more responsible and sustainable practices becomes a legal requirement. Without this transparency and credible data, there is no mutual responsibility between the buyer and supplier towards the consumer.
Are we doing enough?
In terms of our local South African agri-supply chain, SIZA, in collaboration with the industry, actively works toward helping agricultural suppliers, packhouses, and processing facilities meet these global expectations. This is done by ensuring that retailers who must prove that risks are managed within the supply chain have adequate visibility and transparency on their suppliers’ practices. The MySIZA platform tracks audit results and risk factors, creating a transparent system accessible to suppliers and buyers. The Platform enables suppliers to address non-compliances proactively, showcase best practices, and implement corrective actions in real-time. The platform has expanded to include over 4,000 subscribers across 40 commodities, showing a significant international acceptance of SIZA’s standards. Additionally, SIZA promotes capacity-building initiatives, including training for emerging growers, environmental compliance education, and workshops on ethical labour standards, empowering agricultural businesses to meet retailer expectations sustainably and consistently.
Lately, the focus on food safety and social responsibility has proven insufficient. More consumers and retailers are moving towards evaluating environmental practices in their value chain. SIZA has seen this through the rise in environmental audits, such as the 221% increase in 2024, reflecting the intensifying focus on sustainability. Retailers are compelled to comply with international standards to reduce reputational risks associated with supply chain practices, and naturally, the retailer’s brand may be negatively impacted if risks within its supply chain are identified.
SIZA’s alignment with global standards and its proactive approach to audit oversight offers a road for South African businesses to remain competitive despite growing global sustainability mandates. At the end of the day, for a business to meet global retailer and consumer demands, compliance with standards is essential as a proven method of risk verification. SIZA and the South African agricultural industry are motivated to work with global partners to ensure this world of compliance does not create duplication or unnecessary additional cost whilst ensuring it remains rigorous, relevant and aimed at driving continuous improvement.
