Meet key legal requirements of the German Supply Chain Law.
Ensure Compliance and Transparency with German Law
In 2023, the German Supply Chain Law (Lieferkettengesetz) will require that companies with 3,000+ employees identify, prevent, end or at least minimize the extent of human rights and environmental risks along their supply chains.
Monitor for Risks and Ensure Compliance
With Compliance Incident Management (CIM), you can monitor your supply network for potential risks and ensure compliance to legal requirements.
Avoid liability risks: By integrating CIM and supply chain due diligence checks into a holistic risk management approach, you can adhere to key requirements of the supply chain law. Avoid fines, penalties and sanctions, as well as exclusion from public contracts.
Achieve transparency: Continuously monitor your supply network for potential risks and compliance requirements. Use artificial intelligence to automatically notify you of relevant risks in real time.
Mitigate Risks Related to the German Supply Chain Law
When you receive a risk alert, Action Planner helps you take remedial actions and communicate these across the organization and to your suppliers. Use ready-made and customizable action plans in which preventive measures and responsibilities are already anchored.
React Faster
Prepare a catalog of action plans for various types of risk, so you can react faster to violations or incidents.
Minimize supply chain due diligence risks: Have pre-built preventive and remedial action plans on hand for all kinds of risk. Customize plans easily to fit each use case.
Avoid fines and penalties: CIM automatically documents activities, so they can be shared with authorities or other external partners.
Avoid Reputational Damage
Through increased transparency along the entire supply chain, you avoid losses in sales and profitability, damage to your reputation and exclusion from public contracts.
Recognize risks before they occur and before dangers become actual events. Through continuous monitoring, potential risks are identified at an early stage.
Build trust, maintain integrity and verify that you comply with laws in order to protect your reputation and reap benefits for your organization and your shareholders.
Explore Other SCRM Capabilities
Benefit from purpose-built solutions with a seamless connection.
Risk Intelligence
Effective SCRM involves monitoring millions of data sources for emerging risks. In global supply chains, the task is beyond human capacity. Risk Intelligence leverages the power of artificial intelligence to monitor data around the clock.
Mobile & TV Apps
Whether you want to see your supply chain on the big screen or the small screen, Sphera SCRM Apps have you covered.
Impact Analyzer
Impact Analyzer helps you to minimize the business impact of risk by assessing suppliers’ criticality and detecting vulnerabilities at the category level. Adding impact dimensions like revenue and spend allows you to assess the extent of damage that a potential supplier failure could have on the supply chain. This also helps you select the suppliers that are best for your business.
Action Planner
Action Planner helps you collaborate across your organization and with your suppliers to orchestrate the tasks needed to both proactively and reactively mitigate risk. Use pre-built and customizable action plans, so you can quickly take action before incidents become critical.
Risk Assessment
Risk Assessment automates supplier and third-party assessment processes, enriches evaluation of risk scores and integrates survey results into business partners’ risk profiles. Our versatile supply chain assessment tool simplifies supplier qualification and monitoring, improves data accuracy, reduces manual data collection and closes the risk feedback loop.
Compliance Incident Management
Compliance Incident Management (CIM) captures all relevant incident data. CIM comprehensively checks your supply chain for compliance-related violations and can be customized with company-related specifics. This enables you to monitor supply chain incidents that may violate regulatory requirements or internal sustainability goals and put you at greater financial or reputational risk.
Sub-Tier Visibility
Sub-Tier Visibility visualizes the process of monitoring and alerting n-tier supply chains within the Sphera Supply Chain Risk Management solution. With supplier-validated supply sites, you can confidently map sub-tier dependencies and more accurately expose threats in your sub-tiers before they become critical.
Learn More About German Supply Chain Law Bundle
CSR is the #3 business strategy priority of CPOs.
Stricter due diligence and liability rules, such as those resulting from the German Supply Chain Act, also prompt action. Here, significantly more than half of the respondents see the risk of serious and even existence-threatening damage and profit losses for the company.
Compliance teams find challenges in centralizing compliance data, creating effective data analysis and due diligence programs and evaluating compliance data once it is acquired. In many cases, the burden caused by these challenges could be alleviated by leveraging technology and automation.
The average annual disruption cost ranges from $42 million for financial issues – a key supplier going bankrupt – to $35 million for environmental, social and governance (ESG) risks – for example, fines for breaching human rights laws at a factory or service location.
Are You Ready to Monitor Risk in Real Time?
Learn what Sphera’s Supply Chain Risk Management software can do for your enterprise.