PwC Software “Check Your Value Chain”

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Max Mustermann

Viktoria Demin
Senior Manager, Sustainability Services at PwC Germany
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Successfully identify and mitigate supply chain risks

The obligations under the German Supply Chain Due Diligence Act (SCDDA) were expanded as of the beginning of 2024. Initially applying only to companies with more than 3,000 employees, now it includes companies with more than 1,000 employees. This poses many challenges for enterprises. We have developed a solution to support you: “Check Your Value Chain” (CYVC) efficiently ensures compliance with SCDDA requirements with minimal resource expenditure – while also granting complete risk transparency. 

Our solution helps organisations to gain a holistic overview of their entire business partner portfolio – from their own business activities through to suppliers and customers. The key feature of the application is its comprehensive and automated risk analysis of business partner portfolios that applies market-tested risk levels. Risky business partners are thus quickly and easily identified.

In addition to analysing and identifying risks, the software enables you to immediately define and track measures for risky business partners fraught with risk. The application assists companies via a highly automated and cost-efficient approach in fulfilling the new legal requirements.

“No single company can save the world on its own. We can only address issues like forced and child labour if everyone plays their part. That’s exactly what the SCDDA enables.”

Viktoria Demin,Senior Manager and expert for Supply Chain Compliance & SCDDA, Sustainability Services at PwC Germany

Multiple awards for Check Your Value Chain

SAP Innovations Awards 2023

Recognised with SAP Innovation Award: PwC wins the SAP Innovation Award 2023 in the Partner Paragon category with the Check Your Value Chain solution: By using SAP technology, PwC provides its clients with a powerful solution that enables them to efficiently meet the requirements of the Supply Chain Duty of Care Act with a manageable amount of resources – and with full risk transparency.

About the award: Every year, SAP presents the Innovation Awards to recognise the achievements of forward-thinking companies that use the latest SAP technologies to create intelligent solutions that have a positive impact on the economy, environment and society and help shape a more sustainable future.

Corporate Digital Responsibility Awards 2023

Recognition: PwC’s “Check Your Value Chain” software was honoured with 3rd place in the “New Business Models” category of the Corporate Digital Responsibility (CDR) Awards. The award recognises CYVC's ability to ensure compliance with human rights and environmental protection standards in value chains.

About the award: The CDR Award recognises companies and organisations that demonstrate an outstanding commitment to corporate digital responsibility that goes beyond legal requirements. It aims to stimulate competition and raise awareness of the importance of digital responsibility in shaping a sustainable future. The award recognises both practical approaches and theoretical work, internal processes and ideas that span the entire supply chain (B2B2C).

The Solvers Challenge 2023

Recognition: Our SCDDA software “Check Your Value Chain”, which is based on SAP cloud technology, enables customers to analyse large volumes of supplier data along their global value chain to ensure compliance with the SCDDA (LkSG) and CSDDD. This led to the tool being recognised in the “Cyber, Risk & Regulation” category.

About the award: The Solvers Challenge is an internal PwC competition that helps bring innovative solutions from the global PwC network to life. In 2023, more than 700 teams from 135 countries submitted their solutions. The global jury was made up of internal and external experts. Find out more in the following video on the website.

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Challenges of the SCDDA

Since January 1, 2023, German enterprises with more than 3,000 employees are required, under the SCDDA, to examine their global value chains and conform with legal obligations. As of the beginning of 2024, these regulations for supplier risk management now also apply to companies with over 1,000 employees. The aim is to enhance supply chain transparency, strengthen human rights, and minimise environmental risks.

Furthermore, it is anticipated that further amendments will be made to the SCDDA in the medium term to incorporate European requirements into national legislation. Considering increasing demands on supply chain regulation, it is also crucial to consider European standards. The discussion surrounding the Corporate Sustainability Due Diligence Directive (CSDDD) at the European level highlights the expanded requirements for companies with global supply chains. In contrast to the SCDDA, here, obligations apply to businesses with 250 or more employees worldwide and a net turnover of at least 40 million euros.

There is still a lack of clarity regarding the interpretation of certain parts of the SCDDA. It is evident, however, that companies are required to conduct a comprehensive risk analysis of their supply chains. Manually reviewing each and every business partner to comply with the law is nearly impossible, not only entailing an enormous workload, but unnecessarily burdening personnel and requiring implementation of more expensive processes. 

To meet all requirements in time, it is important to set up your structures and procedures for risk analyses now. Companies need to gain an overview of how their processes function and which tools are in use.

  • Do we know the suppliers involved in our global supply and value chain processes, that must therefore be assessed? 
  • Have we clarified who is responsible for compliance with the due diligence requirements within our company? Do we have sufficiently trained staff in areas such as purchasing, compliance, and legal to manage the additional operational workload for reporting requirements and supplier management? 
  • Do we have an established risk management system? Have we identified an efficient method to detect supply chain risk? 
  • How are the results of the risk analysis evaluated?
  • Which preventive and corrective measures are suitable for the risks and incidents that have already been detected?
  • How can we set up our annual public reporting in a legally secure manner?
  • How do we successfully integrate the complaint procedure into supply chain evaluations?
  • How to recognise substantiated knowledge regarding familiar and unfamiliar direct suppliers? How do ad-hoc analysis work?

Our solution

With PwC’s cloud based “Check Your Value Chain” solution, companies can identify, assess and mitigate the risks in their supply chains. All requirements arising from the SCDDA and the CSDDD can be represented in a systematic and audit-proof process. Moreover, all steps required to fulfil the due diligence requirements are carried out for the entire business partner portfolio. There is no pre-selection of suppliers, unlike other solutions, such as those relying on media analyses or voluntary disclosures by suppliers. 

CYVC continuously analyses many data sources regarding respective business partners. This includes macro-economic indicators, analysis of information from media in various languages, as well as the consideration of relevant certifications, benchmarks, and ratings, as well as indices.

A comprehensive supplier risk analysis helps identify the most high-risk business partners, allowing for the subsequent implementation of appropriate measures. These tailored risk mitigation proposals result in time and cost savings for users. 

Enjoy full transparency throughout the entire process with continuous monitoring of all business partners and comprehensive documentation of each step in your supply chain due diligence processes. The audit-proof reports can be exported at any time for transmission or publication and will help you meet official requirements.

Services at a glance

Reporting standards and updates

Comprehensive reporting ensures that all SCDDA reporting requirements, as well as the requirements of the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA) are met. Predefined reports and comprehensive analyses of business partners can be utilised for internal documentation and annual reporting. In the event of amendments to the law, such as those following the EU Directive, the software will be updated to comply with future legal requirements, ensuring users remain up to date.

End-to-end process for complete transparency

Our risk-based approach is unique across the market and facilitates the analysis of all suppliers involved in value creation, as well as your own business activities and customers. The analysis of all business partners, based on risk levels, is supported by market-tested and validated assessment methods, along with a wide range of relevant external data. This systematic end-to-end process guarantees compliance with all due diligence requirements and reduces complexity, providing complete transparency for each individual procedural step of the risk assessment.

Open SAP-based ecosystem

Integration into the innovative Dataland ESG data marketplace grants access to a large range of company data. In addition, information from further external sources such as Sedex, Maplecroft, Dow Jones and various sanctions and certificate databases can be incorporated.

Quick connection and easy maintenance

Easily connecting to relevant company systems, the modern application platform can be integrated seamlessly into any environment. The software-as-a-service solution can swiftly be implemented throughout the entire company, with maintenance of interfaces with commonplace SAP systems being just as straightforward.

Holistic ESG approach

“Check Your Value Chain” is an integral part of the holistic ESG Management Suite offered by PwC Germany. It integrates various ESG applications, including those related to the EU Taxonomy, risk management, and climate change. Additionally, our highly scalable solution can be expanded to address international regulations (such as the UK Modern Slavery Act). We thus provide an overarching solution for ESG requirements, where users benefit from synergies across an entire range of tools.

Check Your Value Chain – Data Package Risk Analysis

Would you like an immediate and cost-effective initial assessment of your high-risk business partners? Are you looking for a quick and easy way to comply with the due diligence requirements of the SCDDA for your company across the entire supply chain? Try our new service and receive a report of the individual risk analysis promptly, providing a comprehensive overview of high-risk business partners, as well as all other business partners in your portfolio. Curious? Discover more advantages and find all details in our flyer.

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“I am convinced that the SCDDA presents a significant opportunity for both our society and individual companies alike. With our software, we assist companies in implementing the statutory requirements with minimal effort while ensuring transparency in their processes.”

Dr Jan Joachim Herrmann, Partner, Procurement & Sustainable Supply Chain at PwC Germany

Your added value

“Check Your Value Chain” is a legally secure, adaptable, and auditable solution. With the software, risks can be automatedly identified, assessed, and prioritised with regard to human rights or environmental violations, and measures can be defined and tracked. The ongoing monitoring of all business partners and the continuous documentation of each step of your supply chain due diligence ensure comprehensive transparency over the entire process. Audit-proof reports that can be exported for publication and dissemination at any time assist you in meeting regulatory requirements.

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Dr. Jan Joachim Herrmann

Dr. Jan Joachim Herrmann

Partner, PwC Germany

Tel: +49 1516 5262365

Viktoria Demin

Viktoria Demin

Senior Manager, Sustainability Services, PwC Germany

Tel: +49 160 96392567

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