JAGGAER: Preparing Customers for New German Supply Chain Law

JAGGAER’s customers in the supply chain sector can be confident they are prepared for new German legislation, a step towards a new European Union Directive

As environmental, social and governance concerns become prime focal points for businesses, supply chains are making various changes to comply with human rights regulations. 

As of 2023, a new German Supply Chain Law will take effect to ensure that companies can provide complete transparency of their supply chain practices. 

Newly agreed supply chain law 

How will the new law affect businesses in the supply chain? 

As of 2023, companies operating in Germany with more than 3,000 employees will be governed by newly ratified regulations and organisations will be obligated to provide comprehensive insights into their supply chains. 

Businesses with smaller workforces—upwards of 1,000 employees—will be faced with the same regulation change in 2024. 

The approval of the new regulation by German lawmakers is already paving the way for the rest of Europe as the European Commission makes plans for an ‘EU Directive on Mandatory Human Rights, Environmental and Good Governance Due Diligence’. 

Later this year, the European Parliament will be presented with a draft of the Directive, which is likely to be applied to EU countries as early as 2023. 

The likes of France and the Netherlands have already passed legislation for national supply chain due diligence. 

Getting ahead of regulatory change

While the new law is crucial to supply chain sustainability, organisations are now faced with an important period of development. 

Undergoing digital transformation will allow for a smooth implementation of regulations, which many organisations may not be prepared for. 

JAGGAER, the source-to-pay vendor, puts its customers ahead of the curve with real-time monitoring and risk management systems, which are crucial for transparency across all areas of the supply chain. 

“We see the passage of the Supply Chain Act as a decisive step in the right direction and believe that the legal pressure will have a positive effect on companies,” says Georg Rösch, Vice President Product Management at JAGGAER. “After all, respect for human rights should be a matter of concern for every company.” 

JAGGAER customers can leverage data on contract periods, ownership structures, purchasing volumes or supplier dependencies to provide impromptu assessments to resolve issues and put measures in place to mitigate further complications. 

Meanwhile, customers are also well equipped to apply preventative measures in the supplier selection process, for a more sustainable procurement process. 

“Supplier risk management has always been a top priority for us, and we provide our customers with targeted solutions to ensure that they can identify risks at an early stage and act proactively to prevent any damage.”

Looking to prepare your business for sustainable supply chain operations? Click here to check out the company’s source to contract supply chain management solutions.


You can also catch Georg Rösch at Procurement and Supply Chain Live.

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