The need to map the supply chain is growing, not least because of new EU directives. Stratsys ESG expert Anna Lindstedt recognized early on the need for a system that could help companies deal with these issues. This was the starting point for the work of finding a modern ESG solution that handles the entire global supply chain.
What do you do when assessing high-risk suppliers requires more and more resources? In global supply chains, the work is put to the test. This is something that Anna Lindstedt, ESG expert at Stratsys, has deep knowledge of:
- Modern supply chains often span multiple continents. Yet the need to map supply chains remains. It doesn't get any more complex or challenging," says Anna.New and tougher requirements with the CSDDD
The need for mapping has grown in line with new requirements from the EU, which are not only linked to reporting, in the form of the Corporate Sustainability Reporting Directive (CSRD). With CSDDD (Corporate Sustainability Due Diligence Directive) you need to carry out a risk-based due diligence where you map the supply chain.
- CSDDD means that activities related to the purchase and distribution of products need to be mapped to identify and assess risks in the supply chain. Risks linked to two areas: human rights and the environment. It is both about preventing, mitigating or limiting potential negative impacts and ending or minimizing the extent of actual negative impacts.
Anna Lindstedt, ESG expert at Stratsys
Challenges in the supply chain
So what are the most common supply chain challenges? Here are some examples:
- Global scope. Mapping the supply chain today can be challenging as they are often very long and complex.
- Resource demanding.Management can often be demanding for a purchasing organization. Managing the negative impacts identified requires both skills and resources.
- Education. Knowledge of the issues can vary greatly. For example, it may be higher in countries that already have strong regulatory frameworks.
- Systematics. Successfully implementing sustainability aspects in the purchasing process and working systematically is a prerequisite for effective compliance work where all legal requirements are met.
- Lack of transparency. For example, complex supply chains where it is difficult to obtain complete information.
According to Anna, in many cases risks can be difficult to manage due to the complexity of the supply chain:
- The big risks are rarely in the first tier, but often further down, with subcontractors. Consequently, the mapping of the supply chain needs to go just as deep, which is often a time-consuming and complex task. A system support can facilitate this.
Based on reality
The challenges associated with global supply chains are something Anna herself encountered during her long career as an ESG expert.
I was helping procurement departments in the role of senior advisor, but noticed that there was a lack of good system support. That's why the solution offered by Stratsys is very exciting," says Anna.
Effective supplier risk management
Stratsys' solution is tailored to manage due diligence in complex supply chains. The system allows you to verify and screen suppliers globally, identify risks, manage risks effectively and provide a basis for reporting and support for audits. It is also possible to work with risks at a strategic level and create action plans.
- With our solution, you can map the entire supply chain, even visually. This way you can see how it is connected. With our solution, we can verify suppliers and assess risks even at subcontractors," says Anna.
System support - a necessity to meet CSDDD requirements
With the right conditions, you can go a long way, says Anna:
- Global supply chains are complicated. Mapping them is difficult and demanding, but it is certainly not impossible. On the contrary, it is possible to get very far if you are systematic, persistent and have good system support to work with.
A comprehensive system support is necessary today to succeed in ESG work. Not least in view of the increased requirements imposed in the form of new and tough EU directives such as the CSDDD.
