EXCON supports supply chain act reporting requirements

New additional service for companies to submit supply chain reports for companies: The deadline for the Federal Ministry of Economics and Export Control's review of supply chain reporting requirements is fast approaching for affected companies. Many companies face great challenges in complying with the Supply Chain Due Diligence Act. With the ex:plore audit software and the new add-on service, EXCON simplifies the compliance processes for reporting companies and reduces the administrative effort.

Supply Chain Act Due Diligence: What companies can expect now

The reporting requirements under the Supply Chain Act will apply to companies with at least 1,000 employees as of 2024; previously, they applied to companies with at least 3,000 employees. Companies will be required to comply with human rights and environmental due diligence requirements along their entire supply chain and to analyze, submit and document them in an annual report in accordance with the requirements of the Federal Ministry of Economics and Export Control. The Ministry will review the reports for the first time on January 1, 2025.

Companies must follow the following requirements for implementation and documentation:

Risk Analysis: Companies must regularly conduct a risk analysis to identify human rights and environmental risks in their supply chain.
Preventive measures: Based on the risk analysis, companies must take appropriate preventive measures to minimize identified risks.
Remedial actions: Immediate remedial action must be taken when human rights or environmental abuses are identified.
Reporting: Companies are required to prepare and make publicly available an annual report. This report must include the results of the risk analysis, the preventive and remedial measures taken, and the effectiveness of these measures.
Documentation and auditing: Compliance with due diligence obligations must be documented and periodically reviewed.

Intelligent combination of technology and service

One of EXCON's greatest strengths is the intelligent digitalization of processes. The ex:plore audit software provides companies with the technical requirements and processes they need to comply with the due diligence requirements of the Supply Chain Act. Simply use the questionnaire of the Federal Ministry of Economics and Export Control, which is integrated in the audit software ex:plore, and collect the necessary data digitally, across multiple locations and your entire supply chain, in multiple languages.

In addition, ex:plore documents your supply chains as well as your preventive and corrective measures in an audit-proof and traceable manner. This provides companies with the ideal basis to continue their Supply Chain Act reports year after year, to submit them to the portal of the Federal Ministry of Economics and Export Control and to publish them conveniently on their website.

The new add-on service complements our technical solution. As a company, you no longer have to register, log in and submit the Supply Chain Act report to the federal portal by yourself. If you wish, EXCON will take care of these steps for you. EXCON offers companies an all-round Supply Chain Act service. Both components, software and services, can also be used individually by companies to their full extent.

Components of the Supply Chain Act All-round service and benefits at a glance

With the expansion of its range of services, EXCON is setting new standards in the industry. As a reliable partner, we offer companies innovative solutions for the implementation of the Supply Chain Act Due Diligence.

Transparency and analysis of the supply chain: A comprehensive analysis and transparency of the entire supply chain is possible. Companies can monitor their suppliers and their compliance status in real time and identify any risks. Optionally, you can implement your own scoring or benchmarking system to compare your suppliers.
Reporting according to the guidelines of the Federal Office for Economic Affairs and Export Control: Based on the data collected, the software generates detailed reports that comply with federal requirements. These reports include all the information needed to comply with the Supply Chain Act.
Easy submission: We take care of the complete registration and login to the Federal Office of Economic Affairs and Export Control portal and submit the reports on your behalf.

For more information on the Supply Chain Act, please visit explore.excon.com.

Business benefits:

Time savings: Thanks to the intelligent combination of technology and additional service, the companies concerned will achieve maximum time savings. The ex:plore audit software and the additional service also save time when used individually.
Reduced error rate: The additional service ensures that all reports are submitted correctly and on time. Potential errors and associated penalties are avoided. In addition, the integrated control mechanisms within the ex:plore audit software reduce input errors.
Cost Efficiency: By using the Supply Chain Act full service, affected companies reduce the costs of internal administrative tasks and compliance audits. Companies also benefit from the wide range of use cases of the ex:plore audit software.

Please do not hesitate to contact us.