Software Solution for the Supply Chain due diligence law

Navigating the evolving regulatory landscape is crucial for strategic purchasing. Relatico's SRM Software is your dedicated solution, enabling you to comply with the Supply Chain Due Diligence Act confidently and efficiently. Gain the expertise and support needed to ensure your operations are law-aligned and ready for any shifts in mandates.

Supply chain compliance

Are you affected?

Directly affected from January 2023

All companies (of any legal form) with at least 3,000 employees and a registered office, head office or branch office in Germany.

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.

Indirectly affected from 2023

SMEs that act as direct suppliers to companies subject to the law may fall under the LkSG provisions. These suppliers will be considered in the risk analysis of the main company and will have to take preventive measures.

Supply Chain Due Diligence explained

The Supply Chain Due Diligence Act (LkSG) mandates that the due diligence duties of companies extend beyond their own business areas to their entire supply chains—from raw material procurement to the completion of the final product. For many businesses, this implies additional administrative tasks to fulfill new reporting duties and information requirements and to comply with the law. Close collaboration at critical junctions between your company and your suppliers is crucial for the successful implementation of these requirements:

Risk Management and Risk Analysis (§§ 4, 5 LkSG): Comprehensive risk analysis is crucial to identify possible environmental or human rights risks within your company and with your direct suppliers.

Preventive and Remedial Measures (§§ 6, 7 LkSG): When risks or violations are identified, immediate implementation of suitable preventive and remedial measures is essential.

Complaint Management (§§ 8, 9 LkSG): Establishing a system for complaints and suggestions enables reporting of human rights violations, environmental risks, or breaches by companies, suppliers, or other stakeholders.

Documentation and Reporting Obligation (§ 10 LkSG): Companies are required to publish a declaration of principle on human rights strategy and to submit annual reports on the implementation of their due diligence duties.

The LkSG imposes numerous new requirements on companies, necessitating transformations concerning compliance into new organizational processes. However, it’s crucial to stress that companies in Germany are only liable if it can be proven that they have neglected their due diligence duties due to misconduct by suppliers or deception by suppliers towards their business partners. To strike the right balance between the necessary organizational effort for all involved and reporting that complies with the LkSG, continuous dialogue with suppliers and smooth partnership are vital.

Navigate the new Law: Your 6-Step Compliance Guide!

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Document the company's Supply Chain compliance.

Risk icon

Set up a supplier risk management system.

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Carry out risk analyses on a regular basis.

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Ensure preventive measures (own and suppliers),

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Establish corrective actions for legal violations.

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Disclose compliance in an annual report.

How can  SRM-Software help you with compliance?

In the midst of these challenges, using SRM Software liker elatico can be pivotal for achieving strategic purchasing and supplier management, enabling companies to address sustainability reporting and supply chain due diligence act requirements effectively and sustainably.

Streamline Complaints and Corrective Actions with Our Task Boards

Organize tasks as 'To-do', 'In Progress', or 'Done' with Relatico, ensuring every complaint and corrective action is addressed promptly and efficiently. It’s not just about supplier management, it’s about fostering sustainability and due diligence in every action.

Add boards and tasks
Keep all supplier information in one place
Centralize Business Partner Information with Company Profiles

Maintain immediate access to comprehensive information about your business partners. Our platform is not just a tool; it’s your strategic partner in enhancing transparency and efficiency in your strategic purchasing processes.

Enhance Supply Chain Visibility with Our Comprehensive Tree Builder

Relatico provides a clear, bird’s eye view of your supply chain, allowing for informed, timely actions where needed. Our sustainability reporting tools offer unprecedented insights, paving the way for optimized supply chain risk management and robust sustainability practices.

Supply chain tree diagram
Stay a Step Ahead with relatico SRM Software
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Experience how our feature-rich system can revolutionize your processes, reduce risk, and increase overall efficiency. Let's redefine what collaboration means in your organization!

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

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"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."

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Frequently Asked Questions

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 an automatic LkSG report generated for upload to BAFA?

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

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.

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.

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, 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.

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 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.