By Wasana Nadeeshani Sellahewa
(Commonwealth) _ The German Supply Chain Due Diligence Act was enacted on June 11, 2021, by the German parliament. The purpose of this law is to control how corporations are held accountable for causing environmental harm and human rights abuses across their supply chains. The law is put into action on January 1st, 2023, with more obligations coming into effect on January 1st, 2024. The SCA is applicable to all German-based enterprises with 3,000 or more employees at their headquarters; in 2024, this number will decrease to 1,000.
This action will directly affect the rubber sector, according to a Ralf Aumann article. As a result of their extensive B2B activity, rubber processing businesses are impacted by the majority of changes that affect the supply chain. In addition to Germany’s initiatives, the European Parliament is now drafting legislation that would govern businesses’ duties for due diligence at the EU level. According to reports, this rule goes well beyond German requirements. It is anticipated to include a broader scope and better environmental criteria, among other things.
Any businesses with 500 or more employees and a majority of their revenue coming from the EU will be subject to the European initiative. This limit reduces to 250 in sectors that pose a risk to both humans and the environment. The logistics of enterprises that produce rubber face issues from both the EU draft and the German Supply Chain Act. The requirement to supply data to authorities and clients enlarges the administrative workload. For small and medium-sized businesses, it is currently difficult to monitor indirect suppliers in Southeast Asia. Yet, advancements in technology and collaboration with interest groups will eventually make it possible for European businesses to work more effectively with their global partners and fulfill their due diligence duties.
Thus, the rubber business is ready to take on its obligations and fight global environmental deterioration and human rights abuses. Supply chain management strives to organize, regulate, and optimize material and information flows throughout a value chain, as stated in a piece by Christoph Gähler. Here are some strategies to lessen the negative effects of supply chain changes on your business, in addition to identifying ways to comply with the new rules and regulations that will be in place the next year.
As businesses look to balance their procurement goals with the need to reduce their carbon footprint, there is increasing recognition that sourcing products locally can offer significant benefits. In addition to reducing transportation costs and delivery delays, sourcing locally can also contribute to a more sustainable supply chain, as it reduces the distance that products need to travel, thereby reducing greenhouse gas emissions. One example of a company that offers a reliable local sourcing option for US-based businesses is Apple Rubber, which specializes in the production of rubber seals and other rubber components. With its headquarters in Lancaster, New York, and additional facilities in California and Mexico, Apple Rubber offers a range of rubber sealing products that can be customized to meet the specific needs of its clients.
By sourcing from a local supplier like Apple Rubber, US-based businesses can benefit from faster delivery times, reduced transportation costs, and the ability to work with a trusted partner who understands the local market and can provide personalized support. Additionally, sourcing locally can help businesses to reduce their environmental impact by reducing the distance that products need to travel, which in turn can help to support their climate protection goals.
As businesses continue to face challenges in meeting their procurement goals while reducing their carbon footprint, local sourcing can offer a practical solution that can help to balance these competing demands. By working with local suppliers like Apple Rubber, US-based businesses can benefit from a range of advantages, including faster delivery times, reduced transportation costs, and the ability to support their sustainability goals.
High responsiveness and flexibility are essential for supply chain management success. The quickest method to do this is to build a solid rapport with your suppliers based on trust and open communication. Components made of rubber and plastic have unique storage and transportation needs. These parts have the potential to be damaged and rendered useless if handled incorrectly. This is another another factor contributing to the vulnerability of supply networks in the rubber and plastic industries. A network of trustworthy suppliers is a requirement for reliable supply chain management. The choice of suppliers is of paramount strategic importance, particularly in the acquisition of rubber and plastic products and precursors.
