"The Supply Chain Law is increasingly becoming a competitive advantage"

The Supply Chain Act (LkSG) is often referred to as a bureaucratic monster by many companies, associations, and consultants. However, the legislator has seen the necessity of such a law. Moreover, it's not only the legislator who is interested in the law but also many companies.

As of November 2023, 73 companies have signed a declaration for the due diligence law at both national and European levels.

Among the signatories are global corporations as well as medium-sized family businesses. The signatories see the German LkSG as a pioneer for a "demanding European regulation".

This refers to the Corporate Sustainability Due Diligence Directive (CSDDD), which companies are expected to apply from 2025 onwards.

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Bureaucratic monster – if viewed as a pure compliance task:

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Especially in the SME sector, sustainable procurement and especially the LkSG are too often seen as a mere compliance task. However, the legislator's interest is that the regulations from the LkSG are transferred into daily business processes.

Only when the LkSG is brought to life within the company will many questions answer themselves, and compliance with the LkSG will become a matter of course.

However, if the LkSG is located somewhere outside of the business, e.g., in corporate compliance or in quality assurance, the project can quickly become a torment for all involved, including customers and suppliers.

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LkSG – a gain for successful companies:

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The signatories of the above declaration are all very successful companies that have recognized the opportunity from supply chain transparency and sustainable sourcing.

With the CSDDD, these companies will have an even greater advantage because the European regulations are essentially based on the LkSG. In other words, processes and topics that have been developed for the LkSG can be adapted and used for European requirements.

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Relatico- the Solution

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Given the complexities and opportunities outlined in the Supply Chain Act (LkSG) and the forthcoming Corporate Sustainability Due Diligence Directive (CSDDD), it is clear that navigating compliance requires sophisticated tools.

Relaticos SRM software is designed to simplify and integrate these processes within your business, ensuring that compliance becomes a seamless part of daily operations rather than a burdensome task.

With its ability to enhance supply chain transparency and facilitate sustainable sourcing, Relaticos SRM stands as an ally for companies aiming to turn regulatory challenges into competitive advantages.