What Is the Data Gap in Supply Chains and Why It Matters

Supply chains are becoming more complex, and expectations around supplier transparency are increasing. Companies are now expected to understand not just who their suppliers are, but how they operate. This includes everything from certifications and compliance to operational risk and standards.

At the same time, the data needed to support these decisions is often incomplete or inconsistent.

This is what is commonly referred to as the data gap. In a supply chain context, it describes the difference between the information companies need about their suppliers and what is actually available in a usable format.

In practice, supplier data is often fragmented. Some information comes directly from suppliers, usually through questionnaires or documents, with notoriously low response rates. One of our clients said many suppliers thought the questionnaire was spam when it was sent out in 2024. 

Certifications such as ISO standards may exist, but they are not always easy to locate or verify. Even when data is available, it is rarely standardised, making comparisons across suppliers difficult.

As a result, supplier screening becomes time-consuming and inconsistent.

Different teams may interpret the same information in different ways, and processes that should be straightforward often require significant manual effort. This slows down onboarding and increases the operational cost of managing supply chains. It also introduces risk, as decisions are sometimes made based on incomplete or unverified data.

The impact is particularly clear when working with SMEs. Larger suppliers typically have the resources to respond to complex data requests, while smaller suppliers may struggle to provide the same level of detail, even when they meet the required standards. This can lead to good suppliers being overlooked simply because their data is harder to access or validate.

TDH data solutions are designed to address this challenge directly.

They provide a structured and standardised approach to supplier screening starting with comprehensive public disclosure analysis through company websites, published reports and policy documents, supplemented by third-party data sources. 

By reducing fragmentation and improving data quality, this creates a complete and consistent view of each supplier without relying on manual data gathering. It also reduces the burden on suppliers by simplifying data requirements and avoiding complex or costly participation models.

The result is a more efficient process for companies and a more accessible system for suppliers.

As supply chains continue to grow in scale and complexity, having reliable and comparable data becomes increasingly important. Closing the data gap is not just about improving processes, it is about enabling better decisions across the entire supply chain.

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