December 2024 | Reading time: 5 Min.
The supply chain is facing a paradigm shift. Legal requirements such as the Supply Chain Duty of Care Act (LkSG), the Corporate Sustainability Reporting Directive (CSRD) and the European Supply Chain Directive (CSDDD) are setting new standards for risk management. Companies are increasingly obliged to identify, assess and document social and environmental risks along their entire supply chain. For procurement, this means that a rethink is required.
The purchasing department must now focus more on compliance with due diligence obligations. Transparency requirements are not only increasing due to legal requirements. Investors, customers and other stakeholders also increasingly expect detailed information on the sustainability of products and processes. The CSDDD in particular goes far beyond direct suppliers and requires companies to manage risks across all stages of the supply chain.
However, these challenges also offer opportunities: companies that make their supply chains sustainable create resilience and improve their competitiveness. Establishing a future-proof risk management system makes companies more crisis-proof and strengthens stakeholder trust in the long term.
The increasing complexity of global supply chains requires new skills and more intensive collaboration between purchasing departments and suppliers. The key lies in the use of digital tools that standardize and automate processes. Cloud platforms enable centralized data collection and simplify communication between partners.
A key success factor here is the active involvement of suppliers. Instead of overwhelming them with complex questionnaires, companies should rely on transparent and collaborative approaches. Suppliers who proactively communicate their sustainability strategies make a significant contribution to success.
Modern IT solutions can help companies to build a robust risk management system. They record risks, document measures and create reports that meet the requirements of the LkSG, CSRD and CSDDD. The required compliance is implemented efficiently and cost-effectively through integration into existing systems.
This is not just about legal requirements. Companies that focus on sustainability and transparency strengthen their brand and create long-term competitive advantages.
The increasing demands on supply chains may seem overwhelming at first glance. But they are a unique opportunity to establish sustainable business models and prepare for an increasingly dynamic market world. Transparency, collaboration and digital technologies are the building blocks to minimize risks and seize opportunities.
How can the challenges of the supply chain be mastered? As the leading trade fair and conference for the digitalization of procurement, the Procurement Summit offers the ideal platform to learn more about digitalization and sustainability in procurement. Experts meet here to provide insights into best practices and present innovative solutions.
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