My 2nd favorite German word is Lieferkettensorgfaltspflichtengesetz, also known as LkSG which is a German law that requires corporate due diligence obligations in supply chains. It requires companies, based on number of employees and turnover, to take responsibility for ensuring that human rights are respected, social, and environmental standards are upheld, and risks of violations are minimized throughout their supply chains. More background information can be found here.
You can assess products and raw materials against compliance requirement versions based on the Compliance Disclosure compliance pattern in the Marketability Assessment - Compliance Disclosure app. The system determines the compliance status based on due diligence acts at the product level by propagating compliance requirements from the product level to the raw material level and calculating the compliance status along the product structure. This is done based on the certificates provided by the suppliers, we will see an example in a screenshot.
Behind the scenes all this data is integrated in the basic compliance data and in managing compliance purposes. While the product is the highest level, these compliance disclosures provide product marketability approval for supplier materials. The compliance assessments are then completed on the intermediate and product levels in addition to the raw materials. Color coding makes it easy to identify which processes are complete with proper disclosures, which are in progress, and which are incomplete.
The first step is creating a compliance purpose with the compliance requirements needed. Then we want to manage our basic compliance data for an unpackaged product.
After picking our product, we want to add a new compliance purpose for our due diligence acts the German LkSG and Great Britain Modern Slavery Act.
We select our compliance purpose and click OK.
We change over to the Product Compliance Event, and we can see that the due diligence acts are there, and the system has completed the processing, and the status is now set to completed.
In the Compliance Assessments we see, on the product level, which supplier declarations are missing for the new compliance requirements recently added.
Looking into one of the compliance requirements, we can see which supplier declarations are missing.
Now we choose the supplier which we want to update, or we can create a new one in the Process Compliance Disclosures for Suppliers app.
Here we see the templates created by the system for the Master Data Specialist to complete.
Here we see the dialog for creating and processing a response.
We enter the compliance requirement versions, set the status, and can add a remark. Then we can attach the supplier provided certificates with the proper information.
Here we see the completed compliance declarations with the attachments.
We can now see the updated status and the task progress. We can check each for more information.
Here we see all the related information on the compliance assessment.
Now we see the update in the marketability assessment as well. This can also be seen on the raw material level too.
Finally, we can gain insights into compliance disclosures from supplier information through the new Analyze Supplier Compliance Disclosures app.
The Compliance Disclosure compliance pattern calculates the marketability status of products and raw materials based on the compliance disclosures that have been completed for the assigned suppliers. First, the system propagates compliance requirements from the product level to the raw material. Then the system calculates the compliance status for products along the product structure, starting at the raw material level. Additionally, the system transmits this marketability status to related compliance views, such as unpackaged products containing the assessed raw materials. To enable such assessments, this feature also allows you to assign compliance requirements based on the Compliance Disclosure compliance pattern to compliance purposes.
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