Supply Chain Due Diligence Trends

Global supply chains are rapidly evolving in the face of regulations, trade tensions, and geopolitical events. Companies must be able to manage a growing list of material issues, including forced labor, climate risks and other emerging compliance requirements. At the same time, there is a post pandemic shift for companies to focus on tangible goals and program effectiveness while juggling cost efficiency.

With the number of due diligence regulations increasing significantly, visibility into your supply chain is an organizational imperative that affects the bottom line. The latest regulations that focus on supplier management include the EU Corporate Sustainability Due Diligence Directive (CSDDD), Canada’s Fighting Against Forced Labor and Child Labor in Supply Chains Act, and California’s Transparency in Supply Chains Act. A key theme in these regulations is their widespread impact. Even if a company is not located in one of these jurisdictions, they may be held to the imposed standards if they are in a business relationship with another partner who is.

This regulatory landscape, contextualized by increasing physical climate risks, further amplifies the need for a robust and centralized data management system to drive impactful practices and fortify organizations’ resilience in the coming years. To start growing your understanding of your supply chain risks and cost-effectively mitigating them through a holistic, consolidated approach, reach out to us to find out more about our one-stop data solutions.