Why supply chain transparency could benefit wholesale suppliers & buyers in Dubai

Simplifying the term for the basis of this article, supply chain transparency means that a business knows exactly what’s happening at every stage of its supply chain, i.e the business is on top of both internal and external operations and communications on the daily. This builds, or in turn, strengthens trust between suppliers and buyers, as a transparent supply chain projects an honest image of the business as a whole.


In this article, we outline 3 key benefits of having a transparent supply chain for suppliers and buyers in Dubai.


First and foremost, transparency.

Shoppers today are strong advocates for transparent consumerism, meaning they want to know exactly where their purchases come from and how the product was made. These are a few of the results of mindful consumerism and post-pandemic effects of researched, insightful shopping that emerged during the pandemic. Before, shoppers in Dubai, were more likely to reach for their wallets and disregard a product’s background or practices. Today, shoppers want their purchases to be in line with their values, they care more about the business’s safety standards, employment standards and ethics. As consumers have a need to be informed on their purchases, this means that supply chain practices should be transparent to them, making them feel empowered about their purchases. A supplier thus, would benefit from this as the shopper is then more likely to choose a product over one with no background information at all.

This leads to the second key benefit, consumer loyalty.

Khalid Saleh’s survey found that it costs 5 times as much to attract a new customer than to keep an existing one. As a well-known speaker and co-author of best-selling Amazon book on conversion optimization, we should all use Khalid’s results as principles of moving forward. In terms of supply chain and customer conversions, a transparent supply chain helps foster consumer trust which will in turn earn consumer loyalty towards the business. Meaning, a consumer is highly likely to purchase from your brand again. This, however, does not stop there. In UAE, word of mouth is still a powerful tool of advertising and Dubai suppliers can utilize this tool on its consumers.

Nevertheless, a transparent supply chain is not limited to just buyers. A business can create a culture of trust through other factors as well, from other suppliers to partners. Communicating more openly with partners and forging long lasting relationships are two main advantages of having a clear supply chain. When there’s transparency and honesty within a supply chain management system, all factors involved can feel safer and are more likely to resolve any disputes and distribution issues directly rather than turning to unethical behavior. Good supply chain communication can extend to better compliance trainings, being open about data to partners and other suppliers, and building a more honest quality production system.

In Dubai, the idea of publicly sharing information and insights of one’s supply chain sounds intimidating as historically, UAE businesses have always been very cautious when it comes to exposing information on their resources or best practices. Being very open about your supply chain usually means that you’re setting up the business to more criticism and competition.

There is great room for growth here once we change this traditional way of thinking. First of all, when a business and its supply chain can prove proof of quality and internal integrity, the business immediately gains competitive advantage through responsible action. A business’s openness about its supply chain and commitment can be an effective catalyst of change, and a key foundation on corporate social responsibility in the long run. Change must begin within the corporation, and it must begin with being transparent on sourcing methods and practices.

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To realize the true benefits a UAE supplier can gain from transparency, a change in mindset is needed. This is not a mere process for gaining visibility into other suppliers’ practices. It is a process that should involve honest communication, willingness for innovation and motivation to learn new tools that will alter the infrastructure of the business. 

Once UAE businesses grasp the idea of a transparent supply chain, it is believed that the business can benefit from both internal efficiency and improved relationships with external partners as mentioned above. Through a transparent supply chain, new business opportunities can arise, new market trends can be shaped, and new revenue opportunities can become available.

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