Supply Chain Act Software

Supply Chain Act Implementation with KYBP

The German Supply Chain Act has been in force since 2023. Companies based in the Germany with 3000 employees or more must comply with the guidelines of the Supply Chain Act. From 2024 on the law will be extended to companies with 1000 or more employees.

If the due diligence obligations are disregarded, companies risk not only high fines, but also quality losses in their own supply chain.

Companies in many other European countries are already affected by similar laws, and at the latest with the adoption of the EU's Corporate Sustainability Due Diligence Directive presented in 2023, companies with more than 250 employees and a turnover of 40 million euros will have to deal with the new legislation.

With the KYBP Supply Chain Act software from SCHUMANN, you can check the sustainability of your business partners. At the same time, you can easily and quickly adapt the processes, rules and regulations for decisions and much more yourself at any time.

This accelerates onboarding, ensures due diligence and increases the quality of your business partner selection.

What is the Supply Chain Act?

In the course of global trade, fundamental human rights violations are repeatedly recorded within supply chains. In order to hold EU companies accountable, the Federal Parliament passed a law on corporate due diligence in supply chains in 2021.

The law thus establishes a framework for protecting people, especially children, and the environment along global supply chains, with the aim of preventing or minimizing human rights or environmental risks. The obligations are not only directed at the company's own business operations and direct suppliers, but also include indirect suppliers in the duty of care.

What Obligations Arise from the Supply Chain Act for EU Companies?

Companies with a certain number of employees must fulfil certain due diligence obligations. These include, for example

Establishing a risk management system to prevent human rights violations and environmental damage
Identification of these risks along the entire supply chain (direct and indirect suppliers)
Compliance with 17 internationally recognised human rights, e.g. prohibition of child labour, slavery and forced labour.