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.
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.
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.
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.