Check Your Value Chain

The following supply chain compliance regulations apply to both our own company and our direct suppliers:

• Drawing up a policy statement and defining internal responsibilities
• Establishment of a risk management system and a risk analysis on the subject of human and environmental rights - at least annually or additionally if there is reason to do so
• When risks are identified: taking measures for prevention and remediation
• Ensure that grievance mechanisms and procedures are in place to identify risks, including with indirect suppliers
• Carrying out an effectiveness review of the measures and procedures introduced - at least annually or additionally if there is reason to do so
• Publication of internal documentation and external reporting – once a year (no later than four months after the end of the financial year)

The risk assessment of suppliers prevents child labour, slavery, forced labour, disregard for occupational health and safety, unequal treatment in employment, discrimination, the use of private/public security services and their disregard for human rights and the withholding of an appropriate wage. 

Unlike other solutions on the market, Check Your Value Chain does not require you to pre-select business partners. All your existing business partners are analysed and continuously monitored, regardless of whether they are subsidiaries, direct or indirect suppliers. Automated supplier risk assessment, daily monitoring and evaluation of more than 10,000 multilingual media sources and verification of up to 200 evaluated certificates can save you up to 500 man-days. 

The implementation time of five days is very short, as instances can be set up quickly and easily using the SAP Business Technology Platform. Due to the existence of import and export functionalities in the software, interfaces to your systems are not necessary. Organisational units, roles/users can be set up in one to one and a half days. The most time-consuming points for companies are the selection of the suppliers to be analysed and the provision of the corresponding data. 

As Check Your Value Chain is a multi-client capable software, you can automatically generate as many BAFA reports as you like. 

Supply chain compliance is crucial for your company to not only avoid legal consequences, but also to protect your reputation and promote sustainable business practices. 

Penalties for non-compliance with supply chain laws vary by law and jurisdiction. Companies are often subject to fines, which are particularly severe if systematic or repeated violations are found. 

In addition, sanctions can be imposed that can significantly impair further business activities. This can include, for example, the restriction or withdrawal of trading licences. 

Many governments and public institutions also require their suppliers to comply with certain social and environmental standards. If supply chain laws are violated, a company can be excluded from public tenders and contracts. 

In addition, in some cases, non-compliance with supply chain laws can lead to trade privileges such as customs concessions or access to certain markets being withdrawn. This significantly impairs a company's competitiveness. 

In addition to administrative penalties, civil and criminal proceedings can also be initiated against the company and its managers. In the worst case, there is a risk of imprisonment. 

It can be assumed that the regulatory pressure on companies regarding supply chain transparency will continue to increase.   

While many current supply chain laws affect specific industries or geographic regions, future laws are expected to have even broader application. As a result, smaller companies and a wider variety of industries could also be subject to the new regulations. 

Furthermore, as supply chains become increasingly globalised, international cooperation in the regulation and enforcement of supply chain laws will continue to increase. Governments and international organisations could develop further harmonised standards and common frameworks alongside already adopted directives such as the CSDDD, EUDR and CBAM to facilitate compliance with supply chain transparency and avoid distortions of competition.