Supply Chain Sourcing Obligations Act (LkSG)

Estimated reading time: 2 minutes

Globalization, the Corona pandemic, the war in Ukraine or even increasing non-transparency, cause challenges in the value chain. The Supply Chain Duty of Care Act (LkSG) is intended to help.

Ware in einem Lagerhaus

Short and sweet

The aim of the Supply Chain Due Diligence Act (LkSG) is to improve the protection of human rights in global supply chains and ensure that basic human rights standards are met, such as the prohibition of child labor and forced labor. German companies must now ensure that such violations do not occur in their supply chains. To ensure this, key due diligence regulations have been established, including risk management, risk analysis, complaints procedures, prevention and remediation measures, documentation and reporting. These requirements are intended to create legal certainty for all parties involved. Violations of the LkSG are punishable by heavy fines and can also be brought before a German court. In addition, exclusion from public procurement may occur as a consequence. It should be noted that the already summarized content of the LkSG is only an excerpt of all the tasks required by the law. You can read more information and tasks here.

Salesfive supports you in complying with the LkSG

It is hardly possible to handle all tasks manually so as not to violate the law. A digital solution is needed. Salesfive can also help your company here because: As of January 1, 2023, companies with 3,000 or more employees are required to implement the legal requirements continuously and comprehensibly. From 2024, this will also apply to companies with 1,000 or more employees.

With Salesforce, your company has the opportunity to digitally document the processes behind the implementation of LkGS. This allows you to maintain an overview of your supply chain and document all processes seamlessly. Do you want to identify action errors directly and act? With Salesforce, you map your supply chains on a single platform. This saves resources and gives you an overview of your process at all times.

EcoVadis: A Salesforce Add-On for Supply Chain Rankings and More

EcoVadis can be the solution for mapping supplier rankings to meet the LkSG's criteria. Thanks to Salesforce, you get in touch with your suppliers directly to avoid errors or to be able to address problems after they have arisen. The identification of problems and their solutions can be stored and tracked directly in the supplier master data record (account) thanks to Action Plan.

Salesfive Module for SRM: Supplier Management Portal

However, there is a tool that makes communication and transparency within the value chain easier than ever before: The Supplier Management Portal. Bring your suppliers to the same table - or rather to one portal. In this portal, all activities and requests of the actors in your value chain are documented and processed. Keep an eye on all information, value and material flows: With our Supply Relationship Management (SRM) module, you have an overview of the various actors and can view every step of the process in real time. The prefabricated module is simply integrated into Salesforce (Experience Cloud) and can be customized as desired. You can find more information about our Supplier Management (SRM) portal at here.

 At Salesfive, we think about your business and provide you with appropriate solutions to meet the requirements of the Supply Chain Sourcing Obligations Act. Feel free to contact us!

Ready for the next project? Let's talk!

We will be happy to assist you in an initial consultation.

Was this article helpful?

Thank you for your feedback!