Transparency In Business - Why is it Important?
Unlocking success within your business’s transportation and logistics.
When the word "transparency" is mentioned in a business setting, mixed reactions arise—eye rolls, accusations of naivety, and those who see its value. Recently, transparency has become a buzzword, dominating news, blogs, and social media. But what exactly is transparency as a business model, and how can supply chain companies effectively utilize it?
Transparency in business goes beyond mere honesty. It encompasses "a lack of hidden agendas and conditions" and involves sharing all information necessary for collaboration, cooperation, and collective decision-making. In simpler terms, it entails accurate and timely disclosure of information. Implementing transparency internally and externally, with stakeholders and customers, is crucial. But how can supply chain companies make transparency a successful business model?
Accepting Risk
Transparency comes with risks. Whenever you share information honestly, you expose yourself to potentially negative outcomes. There's the chance that someone may take advantage of your honesty. Alternatively, nothing significant may happen at all—no harm, no benefit. Lastly, you may receive transparency and cooperation in return. Despite the potential outcomes, transparency allows you to gain a clear picture of the parties involved.
Trust
For transparency to be effective, trust is essential. If transparency only emerges when resolving issues, it loses its authenticity and becomes evident to everyone involved. For instance, if there's a rail strike causing skyrocketing rates, sharing information with your carrier about an upcoming bid to obtain favorable outcomes is manipulative, and not transparent. Transparency must be free from ulterior motives. By sharing information consistently, you can build trust over time.
Give and Take
In a business relationship, full transparency can build a strong and long-lasting partnership. So if you find a company sharing information they don't have to with you, start sharing back, and watch the relationship move to the next level. By fostering a culture of reciprocity, where both parties freely exchange valuable information, trust and collaboration deepen, leading to mutual growth and success.
All or Nothing
To pick and choose what you are willing to share will work against you. All information pertaining to the situation needs to be disclosed for transparency to have its desired effect. If someone suspects that you are holding back, you can lose both trust and credibility. Not to mention they will start holding back as well, transforming the relationship into a mere negotiation. In today's progressive business landscape, where transparency is valued, selective disclosure benefits no one. Embrace full transparency as a typical business practice, and it will lay the foundation for strong and successful business relationships.
Authenticity
Ensure that shared information or items are delivered authentically. Sharing information with a specific outcome in mind appears manipulative rather than collaborative. Transparency's goal is to bring diverse perspectives to the table, fostering the best possible results. Both parties should understand that mutual success is the objective. The success of carriers and customers directly impacts your own success. Align your goals and work together to strengthen the relationship and drive business growth.
According to a survey, approximately 85% of consumers are more likely to remain loyal to a transparent business during a brand crisis. As B2B decision-makers are also consumers, this statistic likely extends to B2B relationships. From personal experience, I have observed that greater transparency in client or carrier relationships yields the best possible solutions. Customers receive exceptional service at fair prices, carriers receive fair treatment and pay, and I receive my compensation. This collaborative approach enables sustainable growth for all parties involved.
Transparency is a powerful force that, when embraced in logistics, can unlock success in the supply chain. By accepting the associated risks, building trust, exchanging information, being open and authentic, and striving for mutual growth, supply chain companies can cultivate long-lasting partnerships and drive collective success. Remember, transparency isn't just a buzzword—it's a valuable strategy for a thriving logistics business in the modern era.
