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Effort optimisation and performance improvement in the compliant implementation of supply chain laws
Like other countries, Germany is now following suit and introducing a supply chain law. This type of law obliges companies to exercise due diligence towards suppliers. Compliance with human rights, environmental protection and social standards must be ensured not only for direct suppliers, but along the entire supply chain. This significantly increases the complexity of procurement and poses challenges for existing purchasing organisations. What is needed is an approach that enables the legal requirements to be met with manageable effort. This conceptual paper discusses approaches for companies to reduce the resulting effort from supply chain law initiative — especially in Germany — and even improve performance at the same time. Audits are shown to be a central means of meeting these legal obligations. This also includes so-called remote audits, which promise comparatively low-effort execution, especially in a global context. Based on the application of international standards, the paper complies with the due diligence obligations of the supply chain law. The result is an assessment of whether and to what extent remote audits are suitable for fulfilling the obligation, how they can be optimally organised in agile interaction with on-site audits and where the limits are. It is also evident that auditing of direct and indirect suppliers in the supply chain can be used to achieve performance improvements and cost reductions elsewhere. Finally, the paper summarises which accompanying measures help to further reduce the burden on companies.
The full article is available to institutions that have subscribed to the journal.
Klaus-Jürgen Meier studied industrial engineering at the Technical University of Munich and has held various positions in industry from 1990. Since 2003, he has been a professor at the Munich University of Applied Sciences, Faculty of Industrial Engineering and Management. His main focus is on applied supply chain management, production management and logistics. In 2005, Klaus-Jürgen founded the Institute for Production Management and Logistics (IPL) at the university with the goal of advancing industry collaboration and research. In 2008 and 2013, IPL Beratung GmbH and Visual Technologies GmbH were spun off.
CitationMeier, Klaus-Jürgen (2022, June 1). Effort optimisation and performance improvement in the compliant implementation of supply chain laws. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 4, Issue 4.