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Check now: How are you affected by the Supply Chain Law?

Directly affected from January 2024

All companies (of any legal form) with at least 1,000 employees and a registered office, head office or branch office in Germany.

Small and medium-sized enterprises

With fewer than 1,000 employees, you are indirectly affected by the LkSG. This means that your customers will request information from you about your supply chains and processes.

Why the Supply Chain Act will affect all companies

Directly affected companies will ask ALL suppliers, whether large (directly affected) or small (indirectly affected), about risks and supply chain information.

This means that your customers will ask you for this information, as you and your company are also part of your customers' supply chains.

Even if this does not happen immediately, you can be sure that it will happen. The legislator has deliberately formulated the law in such a way that it will gradually cover all companies in the supply chain through the large companies.

Supply Chain Law explained

The Supply Chain Law (LkSG) stipulates that companies' due diligence obligations are no longer limited to their own business area, but are extended to the entire supply chain - from the procurement of raw materials to the completion of the end product.

It obligates companies to screen their supply chains for risks, from procurement to completion of the end product, with the aim of preventing or eliminating these risks as far as possible.

For many companies, this means additional administrative tasks. However, with the right strategy and the right tools, this can also result in opportunities for your company.

The key requirements of LkSG

The LKSG is aimed at large "directly affected" companies, which must then also report their activities to the authorities and are investigated.

Risk management and risk analysis (§§ 4, 5 LkSG): A comprehensive risk analysis is crucial in order to identify potential environmental or human rights risks both within your company and with your direct suppliers.

Preventive and remedial measures (§§ 6, 7 LkSG): If risks or violations are identified, the immediate implementation of suitable preventive and remedial measures is required.

Complaints management (Sections 8, 9 LkSG): The establishment of a complaints and whistleblower system enables the reporting of human rights violations, environmental risks or offences by companies, suppliers or other stakeholders.

Documentation and reporting obligations (Section 10 LkSG): Companies are obliged to publish a policy statement on their human rights strategy and submit annual reports on the implementation of their human rights strategy.

These requirements do not apply to indirectly affected companies with fewer than 1,000 employees, i.e. they are not obliged to carry out their own risk analysis, review prevention and remediation measures, set up their own complaints procedure or prepare BAFA reports. Nevertheless, medium-sized companies will also have to deal with their supply chains in order to support their customers in their due diligence obligations.

You will need to do the following:

Prepare for enquiries

Be proactive in preparing for customer inquiries. Understand and meet the clear requirements.

Implement pragmatic systems

Leverage the right software to ensure efforts are proportionate and processes are optimized for effectiveness.

Executing Strategic Planning

Recognize that supply chain transparency extends beyond compliance; it can be a strategic tool for gaining significant competitive advantages.

Relatico offers simple and effective solutions for the Supply Chain Act

Organize your Documentation

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With relatico, you get a software solution that quickly organises thousands of documents for all areas of your company with its diverse and sophisticated functions. Based on years of experience, relatico offers functional, efficient and time-saving solutions for the procurement, organisation and filing of supplier and material documentation.

Seamless Interdepartmental Collaboration

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Smooth communication between departments saves time and frustration. Benefit from efficient collaboration with relatico and free up more time for your day-to-day business.

Beyond Just Document Management

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Relatico is more than just a document database or DMS. Create added value in strategic purchasing and supply chain management.

Picture showing time Savings with relatico.

Navigate through the new law in 6 easy steps!

Relatico has specifically developed a pragmatic approach model for medium-sized enterprises. Contact our team of experts for further explanation.

01

Use your own data for more meaningfulness and relevance.

02

Apply transparent, simple evaluation criteria, no expert knowledge required.

03

Tailor these benchmarks to your needs, adaptable by material type, geography, and more.

04

In-depth audit analysis. You set the criteria.

05

Make informed decisions with agility, moving beyond rigid processes.

06

Ensure compliance with confidence and ease.

Compliance Features

Map your whole Supply Chain

Map your whole supply chain with ease

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Improve supply chain visibility with our comprehensive Tree Builder. Relatico provides a clear bird's eye view of your supply chain, enabling informed and timely action to be taken when needed (link Risk-based supplier analysis).

Our sustainability reporting tools provide unprecedented insights and pave the way for optimized supply chain risk management and robust sustainability practices.

Less risks thanks to Risk heat maps

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The result of the risk-based supplier assessment should be the identification of risks in your supply chain and the identification of high-risk suppliers.

We have developed an effective process specifically for SMEs that enables us to help you quickly assess and prioritize risks and suppliers.

You can then use this as a basis for targeted improvement measures.Please note: The risk-based supplier assessment is not only required for the Supply Chain Act, but also for most quality and environmental certifications such as IFS, BRC, FSSC, EMAS, ISO, ZNU as well as Ecovadis and SMETA.

Example of the Supply Chain MApping and Supplier Evaluation Functions of relatico. Relatico is a supplier management software. This Software can be used for LKSG, CSDDD and more.

Documentation Features

Documentation: complete, up-to-date, automated

Quick overview of your documents

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Easily see which and how many percentages of documents already are collected. Thanks to the completeness calculation, you can always see where you and your suppliers stand.

Document Checklists

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Define requirement packages as needed for specific material groups, supplier groups or processes.

Save yourself from having to constantly search for hundreds of missing and expired documents and use the checklist functions, such as the automated document query.

Create Digital Forms

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You usually receive the documentation as a PDF document. In order to be able to evaluate the information contained therein, you have to transfer the data manually into tables and lists.

We can create your questionnaires and documents as forms. This makes them machine-readable.

- Data can be read, aggregated and analyzed automatically.

- In relatico, existing data is suggested for approval when updates are made - your suppliers will thank you for it.

- Easier management of individual requirement packages, e.g. by material category.

Example of the Supply Chain Documentation Functions of relatico. Relatico is a supplier management software. This Software can be used for LKSG, CSDDD and more.

Audit Features

Be prepared for Audits at all times

Easy overview of the documents you need

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Easily map how many percentages of documents already are collected. Thanks to the completeness calculation, you can always see where you and your suppliers stand.

Support in preparing and conducting audits

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Unannounced audit? No time to prepare for an audit? Our customer project managers are also available to provide you with audit support.

As a service, we offer support from our customer project manager, who will go through the documentation and processes created in relatico with you and the auditor. Even at short notice for unannounced audits.

Documentation always up-to-date

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The clear list of expired documents, sorted by supplier and/or material, gives you a quick impression of supplier performance.

Example of the audit Functions of relatico. Relatico is a supplier management software.

Easy set up

Getting started with relatico is simple

Set up in 2 weeks or less

Through our long experience with the requirements of our users, we have learned a lot and designed relatico so that it can be set up for your company within 1-2 hours.

Our goal is to help our users do this as simply and quickly as possible. That's why the most important features of relatico are explained very quickly (e.g. within a one-hour video call).

Use relatico in your browser

Relatico is web-based. You simply log in via your browser. You will be notified when a supplier uploads a document and you can check and approve the document.

Use the "Automation" function to send links and keep your documentation automatically complete and up-to-date. After a successful upload, you will be notified via email and can check and approve the document.

Your suppliers don't need an account

Your suppliers don't need to log into a database and you don't need to deal with lost access data or create new user accounts for new contacts.

Your suppliers can access the required information and collaborate with you via shared links in their web browser.

This ensures easy access and seamless collaboration without the risk of losing passwords or having to install additional software.

Bernd Neufert
Supply Chain Expert
Test relatico for free!

I would be happy to learn about you and your challenges and introduce you to our software solutions.

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Picture showing Professionals collaborating in the Supply Chain using relatico: the SRM Software for Strategic Supplier Management
Supply Chain Due Diligence in the Press
Suddeutsche Zeitung

"Ärgerlich ist auch das Lieferkettengesetz, das in den Unternehmen einen Aufwand lostritt, der seinesgleichen sucht."

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WirtscharftsWoche

"Das Bafa schafft aktuell die inhaltlichen und technischen Voraussetzungen, um ab dem 1. Januar 2023 seinem gesetzlichen Auftrag zur Kontrolle der Einhaltung des Lieferketten-Sorgfaltspflichten-Gesetzes nachkommen zu können."

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Handelsblatt

Rechtsanwalt Wagner meint: „Unternehmen können diese Aufgaben nicht mehr lange von sich wegschieben.“

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Anwalt.de

"Denn auch kleinere und mittlere Unternehmen sind als Zulieferer für größere Unternehmen vom Gesetz betroffen. So erwähnt das Lieferkettengesetz ausdrücklich, dass die Unternehmen bei der Auswahl ihrer Zulieferer berücksichtigen sollen, ob davon auszugehen ist, dass diese die menschenrechts- und umweltbezogenen Erwartungen erfüllen werden."

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Zeit Online

"Svenja Hahn von der FDP kritisiert, dass das Vorhaben den Unternehmen zu viel Bürokratie auflasten könnte."

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MM Logistik

"Für den Experten ist nicht unmittelbar ersichtlich, wie ein mittelständisches Unternehmen in Deutschland tatsächlich dafür Gewähr übernehmen soll, dass beispielsweise in Indien und Afrika faire Arbeits- und Produktionsbedingungen eingehalten werden."

Read more

Free Supply Chain Law PDF Whitepaper

Whitepaper about the Supply Chain Law - for free!

Enter the information and receive your free white paper about the Supply Chain Law as a PDF immediately! We despise spam just as much as you do and promise to treat your data with the utmost respect and care.

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LKSG PDF - our guide to the new Supply chain law in this PDF Whitepaper for free!
Frequently Asked Questions about relatico

Do my suppliers need their own version of relatico?

No, they don't. Your suppliers can access the necessary information and collaborate with you using shared links on their webbrowser. This ensures ease of access and seamless collaboration without the need for additional software installations.

Is relatico suitable for businesses of all sizes?

Absolutely, relatico is meticulously designed to cater to businesses of every scale and industry. For small to medium-sized businesses (SMBs), our tool streamlines supplier management processes, fostering efficiency without the need for significant resources or overheads. This means SMBs can achieve the kind of supplier collaboration and management typically reserved for much larger entities. On the other hand, for big corporations with intricate supply chains and multifaceted supplier ecosystems, Relatico offers robust features, deep customization, and scalability to manage extensive supplier portfolios, ensuring smooth operations and optimal supplier relationships. In essence, whether you're an emerging startup or a multinational corporation, Relatico adapts and evolves with your supplier management needs, ensuring that every business, regardless of its size, can benefit from seamless supplier relationship management.

What is relatico's approach to risk analysis of the supplier base?

Background: Risk analysis is a fundamental component of the Supply Chain Law (LkSG). In daily business operations, there's often little time to delve into the intricate details of LkSG, leading to confusion and misjudgments.

Our Approach: The Relatico team has devised a simplified procedure for supplier base risk analysis. Our goal is to help our clients kick-start their risk analysis swiftly and provide comprehensive information to their customers. We've designed a step-by-step model that segments the supplier base, creating manageable work packages.

Note: While we assist with data collection and analysis, we cannot make strategic decisions for you. However, we're here to help with our expertise.

What sources are used for the risk analysis?

We recommend focusing on data already available within the company or easily accessible. Use objective, standardized data and avoid qualitative, subjective information. Commonly used sources in the initial phase include:

Commercial ERP data

Address data (ERP master data)

Country risk

Certification status and performance


Tip: Approach it with a "keep-it-simple" mindset, but avoid shortcuts.

How are prevention and remediation measures represented?

Within the relatico database, task packages can be planned and executed, both independently and in collaboration with external partners. This also encompasses complaint management.

How does supplier monitoring/mapping work? Can a Tier-N Mapping be performed?

Absolutely. Relatico can visually represent supply chains in a clear diagram format, enabling quick identification of contacts.

How does your SRM software facilitate supplier risk management?

relatico, is built with advanced risk management features. It evaluates and monitors suppliers, their historical data, and feedback to identify potential risks. Additionally, the software offers alert systems that notify users of changes or inconsistencies that might indicate a risk. By providing a centralized platform, users can quickly respond to potential issues, ensuring that the supply chain remains robust and reliable.

When will there be extensions for CSDDD, EUDR, and CSRD reporting obligations? Will the software be updated accordingly?

Companies well-prepared for LkSG will be aptly prepared for CSDDD. The CSDDD is an extension of LkSG and comprises a set of regulations familiar to German companies through LkSG. Firms integrating LkSG preparations with CSDDD considerations will have a competitive advantage, especially over foreign companies new to this area.New legal provisions, especially those regarding human rights, will often overlap with LkSG and CSDDD. The processes established in companies for LkSG and CSDDD can be recontextualized, building upon existing knowledge.Relatico's Commitment: We closely monitor changing requirements and aim to support our clients in meeting these obligations. If new needs arise, we're equipped to respond efficiently and competently.

Is an automatic LkSG report generated for upload to BAFA?

No, but you can use the informations from relatico for the report.

How does supplier monitoring / mapping work? Can a Tier-N Mapping be performed?

Absolutely. Relatico can visually represent supply chains in a clear diagram format, enabling quick identification of contacts.

When will there be extensions for CSDDD, EUDR, and CSRD reporting obligations? Will the software be updated accordingly?

Companies well-prepared for LkSG will be aptly prepared for CSDDD. The CSDDD is an extension of LkSG and comprises a set of regulations familiar to German companies through LkSG. Firms integrating LkSG preparations with CSDDD considerations will have a competitive advantage, especially over foreign companies new to this area.New legal provisions, especially those regarding human rights, will often overlap with LkSG and CSDDD. The processes established in companies for LkSG and CSDDD can be recontextualized, building upon existing knowledge.Relatico's Commitment: We closely monitor changing requirements and aim to support our clients in meeting these obligations. If new needs arise, we're equipped to respond efficiently and competently.

Can users make custom modifications, like custom fields, workflows, integrations, etc.?

Our primary focus is our customers. If you have requirements that the relatico software doesn't currently meet, we will collaboratively explore potential solutions with you.

Do my suppliers need their own version of relatico?

No, they don't. Your suppliers can access the necessary information and collaborate with you using shared links on their webbrowser. This ensures ease of access and seamless collaboration without the need for additional software installations.

How does supplier monitoring / mapping work? Can a Tier-N Mapping be performed?

Absolutely. Relatico can visually represent supply chains in a clear diagram format, enabling quick identification of contacts.

SRM software vs SCM software: What are the differences?

SRM software is intensely focused on nurturing, optimizing, and enhancing relationships with suppliers. It enables deeper, more collaborative partnerships, fosters improved communication, and aids businesses in extracting maximum value from their supplier relations. On the other hand, SCM (Supply Chain Management) software provides a broader view of the entire supply chain network, encompassing procurement, production, and distribution. While SCM maximizes the efficiency of the entire chain, SRM ensures that the relationships within this chain are strong and fruitful. With our software, relatico.next the focus lies on SRM. That being said, relatico qualifies as both: an SRM and SCM solution, offering the best of both worlds in a single tool.

When will there be extensions for CSDDD, EUDR, and CSRD reporting obligations? Will the software be updated accordingly?

Companies well-prepared for LkSG will be aptly prepared for CSDDD. The CSDDD is an extension of LkSG and comprises a set of regulations familiar to German companies through LkSG. Firms integrating LkSG preparations with CSDDD considerations will have a competitive advantage, especially over foreign companies new to this area.New legal provisions, especially those regarding human rights, will often overlap with LkSG and CSDDD. The processes established in companies for LkSG and CSDDD can be recontextualized, building upon existing knowledge.

Relatico's Commitment: We closely monitor changing requirements and aim to support our clients in meeting these obligations. If new needs arise, we're equipped to respond efficiently and competently.

Is there an SAP interface for data transfer?

Yes, we offer an interface allowing Relatico to connect with other systems, such as SAP.

Can users make custom modifications, like custom fields, workflows, integrations, etc.?

Our primary focus is our customers. If you have requirements that the relatico software doesn't currently meet, we will collaboratively explore potential solutions with you.