The Supply Chain Law

The supply chain law stipulates that German companies will gradually be bound by a human rights due diligence obligation across national borders from 2023. What will become mandatory in the future is already an opportunity today. By acting responsibly along the global value chain, you create quality that inspires. So take action today to prepare for the legal requirements of the supply chain law.

Bringing QM and the Supply Chain Law in Line

Two employees plan supplier audits on a desktop using Babtec's QM software
Acting with foresight: expand your quality management in accordance with legal obligations.

The discussion about the supply chain law resulted from the observation that German companies do not sufficiently comply with their human rights due diligence abroad. The law will come into force on January 1, 2023. Initially, this will affect large German companies with more than 3,000 employees. From 2024, companies with 1,000 or more employees will also be held responsible. In terms of due diligence, companies will then be responsible for their own company and their suppliers upstream in the supply network. Violations could result in fines and exclusion from public tenders for up to three years.

Normative and legal requirements have long been taken into account in quality management. Risk assessment, by means of which potential risks are detected early on, the onboarding process of a supplier and the review of his economic actions are just a few examples. Take the supply chain law as an opportunity to further expand your quality management with the new legal obligations and also growing needs.

More information on the key points of the law can also be found in the article on our BloQ – the blog for quality.

Customized QM Solutions

Expand your measures to better control the origin of your supplier products. Solutions to ensure that you demonstrably meet the requirements of the supply chain law can be found in the precisely tailored modules of our QM software.

With audits, you can check and ensure the effectiveness of a management system in your own company or at your suppliers. It is examined whether the internal company processes as well as the requirements and guidelines comply with the standards. A structured supplier onboarding as well as regular auditing of your suppliers is an essential step to meet the requirements of a supply chain law.

Effective and economically justifiable incoming and outgoing goods inspections ensure the correct handling of inspection planning and processing. Only an inspection based on sophisticated inspection plans provides certainty about the quality of the goods and minimizes the risk of a defective delivery or a complaint. The often considerable effort involved in the inspection planning and the inspection process itself can be minimized by reusing inspection characteristics once created in other inspection plans or by connecting measuring equipment and machines for automatic inspection data processing.

Complaints are extremely helpful for the production of innovative products and long-term customer loyalty when their causes are consistently analyzed and tracked. They show where action is required in the case of defective products and enable continuous improvement of products and processes on the supplier's side – so that in future all parties benefit from higher quality products and services.

The Supplier Cockpit is a supplier management tool that allows you to evaluate and classify suppliers. This helps you to identify risks early on, to develop the quality of and relationships with suppliers in a targeted manner, and to avoid additional costs caused by inadequate supplier performance. You provide the supplier with the results of the evaluations and define joint actions for optimization. In this way you develop the business relationship for the benefit of all parties involved in the long term.

Tablet, BabtecQube-Software on it

Quality Supply Chain in the BabtecQube

Babtec supports you in successfully networking with your customers and suppliers. After all, cooperation based on partnership makes it easier for you to meet the requirements of the supply chain law.

For the management of your customer and supplier network you can use the cloud-based platform BabtecQube, on which more than 2,000 companies already digitally map their quality management. Work together with colleagues and business partners on quality tasks such as goods inspections and complaints or spontaneously exchange information on quality issues. Communication in the BabtecQube is archived and is available online at all times to those involved. In this way, you can easily prove receipt of self-disclosures, certificates or complaints.

Incoming Goods Outgoing Goods Incoming / Outgoing Goods Inspection Check incoming and outgoing goods - avoid additional costs and time. Complaints Management Complaints Management Reduce complaints - for satisfied customers and optimized processes. Supplier Cockpit Supplier Cockpit and Supplier Assessment Evaluate suppliers, provide the results and improve relationships.
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