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A software company is leveraging artificial intelligence (AI) to help companies mitigate and avoid human rights risks in their supply chains.
“When it comes to supply chain transparency, there is a tremendous amount of data being disseminated, not just in spreadsheets, but through social, and we can start using it to identify and focus on it,” said CEO. said co-founder Justin Dillon. Speaking to Fox News Digital, FRDM added that the technology and methods the company uses are still in the “early stages.”
Any AI technology requires large amounts of data to analyze and process, and Dillon points to the wealth of data available on social media that companies can use to plan problem hotspots in their supply chains. Did. Helps create more ethical routes.
Dillon shared a story from an Australian father who talked about using “social listening” to analyze conversations and trends about various brands. Marketing companies have taken advantage of social listening, also known as social listening. listening on social mediahelping companies capture and reinvent their image on various platforms.
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According to FRDM, large-scale language models cleanse spending data more than 90% faster. With 70,000 direct suppliers, a large Fortune 100 company can map its supply chain to Tier 3 suppliers in days, not months or even years. You can get Each tier indicates the degree of separation from vendors, with the first tier indicating direct supply and the third tier suppliers being suppliers between direct suppliers.
More than 80% of supply chains remain unstructured, and Dillon quipped that this was the code for “chaos.”
Boys attend an awareness rally to mark World Day Against Child Labor on June 12, 2022 in Chennai. (Arun Sankar/AFP via Getty Images)
“Less than 6% of companies have visibility beyond Tier 1 suppliers,” he says. wrote in a blog post From April of this year. “For most companies, supply chain data is like a sock drawer with no matches. COVID-19 has exposed this.”
“Disparate ERP[enterprise resource planning]software, legacy IT systems with shackles of data, and multi-language and multi-currency spreadsheets are routinely dealt with by procurement professionals,” he said. It’s only part of the challenge,” he said.
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But these same tools can pick up on documented practices on social media where users aren’t even aware of what they’re doing, allowing companies like FRDM to plan cases of human rights violations. help to do.
Justin Dillon, CEO and Founder of FRDM. A software company that helps manufacturers and vendors achieve an ethical and transparent supply chain. (FRDM/Justin Dillon)
For an Australian father, he witnessed his children uploading videos using their mobile phones. Child laborers at a textile factory in Turkeydidn’t realize they were “literally live-streaming exploits.”
“He could find kids with phones and just showing them sewing in the shop without knowing anything,” Dillon explained.
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A child wearing local ready-to-wear (RMG) at work next to his colleague. Child labor is restricted in the ready-made garment (RMG) sector. However, there are still children reportedly working in a number of local garment factories outside Dhaka, Bangladesh. (Ziaul Haque Oisharjh/SOPA Image/LightRocket, Getty Images)
“Social listening will be a huge tool in identifying where there are hotspots for child labor, forced labor, indentured labor, or some form of exploitation within the supply chain.”
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Workers at a brick factory in Dhaka, Bangladesh, March 16, 2022. (Kazi Salahuddin Razu/NurPhoto via Getty Images)
But finding and processing data is not enough. Here FRDM enters the equation. The company uses large-scale language models, a more commonly known and used form of AI technology, to help “connect the dots.”
Unfortunately, it’s impossible to build a completely ethically clean supply chain, and most companies aren’t interested in committing to a truly transparent and ethical supply chain, Dillon admits. . Rather, they’re simply “looking for a checkbox,” so they’re comfortable passing U.S. regulations that require them to manufacture goods without forced labor or risking border seizure.
Boys work in a bakery during World Day against Child Labor on June 12, 2022 in Lahore, Pakistan. Pakistani President Arif Alvi said on Sunday that Pakistan is fully committed to its international obligations to prevent child labor. (Sajad/Xinhua, via Getty Images)
“Words like ethical and sustainable are very vague terms,” Dillon argued. “It’s kind of like fitness. There’s no real completion, no checkboxes… you can go to ‘I’m done’.” The issue of ethical sourcing, sustainable sourcing, or transparency is that it never really happened. ”
“I believe all the pressure from the media and government is putting pressure on companies to start building unprecedented systems,” he added. “Companies no longer need to build transparent supply chains.”
Dillon stressed that his biggest concern is companies trying to fix parts of the supply chain.
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“Companies come to us saying, ‘We need to use your technology to get the stamp of approval to survive CBP custody like we did,’ but the stamp of approval No,” Dillon explained. “We have to map our supply chain. That’s literally what CBP says: ‘Let’s map our supply chain.’ That’s what we’re working on right now.”
“They’re very lucky because it provides an accelerator. But it’s not a magic wand, it pretends to be much better than it actually is,” Dillon said.
