Results - Yellow Light

Your result is within the yellow range

While you already have some necessary measures in place in your supply chain, DEKRA identifies an urgent need to further explore and improve several key areas.

The aim is to prevent delivery interruptions and legal conflicts arising from a non-compliant supply chain and related reporting obligations.

DEKRA offers immediate assistance and strongly recommends that you contact us as soon as possible.

Our recommendation for you

DEKRA supports you with all the above-mentioned risk analyzes to prevent supply chain disruptions and ensure legal compliance. We use state-of-the-art AI-based analysis tools, combined with an examination of your risk management organization, your risk policy, your management systems, your risk mitigation culture, as well as your training and documentation processes.

Based on the focus of your responses (holistic supply chain, governance or resilience), we strongly recommend that, with DEKRA’s support, the highest-risk areas are addressed immediately, to avoid operational disruptions or legal non-compliance. Additionally, there is an opportunity to continue enhancing the areas where you have already achieved a good level.

Despite identifying critical issues in the questionnaire, we advise against underestimating any remaining or hidden risks. This will enable you to enhance the quality of your supply chain operations, minimize legal and operational risks, and maintain a competitive and fully compliant supply chain.

Background

To secure the operations of a Supply Chain, it is mandatory to cover both governance and the resilience. To determine your immediate priorities, please indicate whether you answered “NO” to more governance-related issues (“G”) or more resilience-related issues (“R”) in the questionnaire.

Supply Chain Governance

This refers to compliance with national laws, such as Germany’s LkSG (Supply Chain Due Diligence Act) or similar legislation in countries like France, the United Kingdom, Norway, Switzerland, the USA, Australia, and others. These laws address issues such as human rights (e.g., slavery, child-labor, labor rights) requiring companies to integrate these concerns into their corporate philosophy, conduct risk assessments of human rights violations within their inbound supply chain, develop contingency plans to avoid non-compliant suppliers, and regularly report on these measures to stakeholders and authorities.

Additionally, the Commission of the European Union has established the EU-wide “Corporate Sustainability Due Diligence Directive” (CS3D), which makes these regulations, along with a climate change mitigation transition plan aligned with the 2050 climate neutrality goal of the Paris Agreement, binding for all EU member states.

Supply Chain Resilience

Resilience refers to factors that could disrupt the supply chain, either suddenly or gradually. These risks include the financial weaknesses of suppliers, operational or cyber disruptions, and geopolitical tensions. Unlike governance issues, the analysis of these risks is not required by law and must be managed by the company’s own responsibility.