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The German Supply Chain Act and its Economic Impacts

Promise Chukwu

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Sozialwissenschaften, Recht, Wirtschaft / Betriebswirtschaft


Seminar paper from the year 2022 in the subject Business economics - Supply, Production, Logistics, grade: 1,3, University of applied sciences, Cologne, language: English, abstract: The previous administration in Germany passed the German supply chain due diligence law known as "das Lieferkettengesetz‘" in June 2021. Now, what does this mean and what impact does it have on the supply chain processes of companies located in and outside Germany? The reason why the German parliament known as "Bundestag" passed this law will be addressed in full details. Supply chain can be understood as a channel of distribution beginning with supplier of raw materials, components needed to assemble goods, this extends to the manufacturing processes, the distribution, and the retail and finally to the final consumer, with the primary goal of creating high level of competitive advantage. The popular definition of supply chain is that it is a set up approaches utilized to efficiently integrate suppliers, manufactures, warehouses and stores, to enhance the production and distribution of merchandise at the right quantities and the right location and right time. The purpose is to minimize costs and satisfy service-level requirements.

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das Lieferkettengesetz, The German Supply chain act