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Risk management for the

Supply Chain Act

What you can do today to be well positioned for tomorrow.

The Act

Since January 2023, the "Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains" (in short: Supply Chain Act) has been in force in Germany. It requires companies to analyze the risks for human rights and environmental protection violations in their supply chains, to take measures to reduce the risks and to report on this.

The Supply Chain Due Diligence Act (LkSG) defines nine due diligence obligations:*

  1. Establishing a risk management system (§4 Section 1)
  2. Designating a responsible person or persons within the enterprise (§4 Section 3) 
  3. Performing regular risk analyses (§ 5) 
  4. Issuing a policy statement (§6 Section 2) 
  5. Laying down preventive measures in its own area of business and vis-à-vis direct suppliers
  6. Taking remedial action (§7 Section 1-3) 
  7. Establishing a complaints procedure (§ 8) 
  8. Implementing due diligence obligations with regard to risks at indirect suppliers (§9) 
  9. Documenting and reporting (§10 Section 1-2) 

Violations of the due diligence and reporting obligations defined in the act can result in heavy fines.

* With msg.LieSA we primarily address highlighted due diligence obligations

The challenge

The complexity of supply chains has grown steadily in recent years. Regardless whether logistics, trade or production – companies often have more than 1,000 suppliers. To comply with the act, they need comprehensive knowledge of their supplier base and the associated risk to environmental protection and human rights.

Do you have any questions?

Irmgard Sturm GBC Konsumgüter

Irmgard Sturm
Head of Department Data Analytics

 +49 173 4256848

"Procurement is constantly facing new regulatory challenges on ESG issues that need to be met. This can only be achieved with intelligent software solutions."

Christiane Rimat
Christiane Rimat
Head of Procurement and CSR Executive Department

Our solution: LieSA

To support you in fulfilling your due diligence obligations, we have developed LieSA (LieferkettenSorgfaltspflichtenApplikation) (supply chain due diligence obligations application). LieSA is a solution approach that picks you up where you and your company currently are.

IT solutions can create the greatest added value in the areas of risk management and analysis as well as documentation and reporting. This is why msg.LieSA focuses on precisely these areas.

msg Liesa  (supply chain due diligence obligations application logo

msg.LieSA …

is ready to go quickly

The implementation effort is low. The first step is to use generally available data and indexes. Based on location and product information, an initial risk assessment of your suppliers is quickly available.


All efforts and activities to detect and reduce or eliminate risks are stored in full. This way, you meet the legal documentation obligation without any addition effort.

is communicative

Data can be retrieved from and imported back into various systems, as required. msg.LieSA therefore fits seamlessly into your IT landscape and works together with supplier management systems, for example.

is individual

You can define the weighting of the criteria, on which the risk analysis is based, specifically for your company depending on corporate values and governance.


All data is historicized. This applies not only to activities that your company undertakes but also to supplier movements. This allows you to track how the risk of your supplier base changes over time.

is modern and future-proof

We know which requirements there are for a future-proof IT landscape. This is why we have designed msg.LieSA as a cloud solution. It thus offers all the advantages of a modern, cloud-based application.

is (artificially) intelligent

msg.LieSA includes an AI component that identifies products with a  risk of child or forced labor. It also takes into account different designations and related products.

is transparent

Our pricing model is transparent and scalable. There are no additional hidden extra costs for the provision of standard functionalities. If you require customized enhancements, we will be happy to provide your with a transparent offer.

Your benefits:

To implement the transparency and reporting obligations, we implement the requirements of the Supply Chain Act with a scalable and configurable solution. This solution is adapted to your needs and designed in more detail depending on

  • the data situation in your company
  • the integration into your supplier and risk management system
  • the additional added value for your company
  • your budget.

With this approach, you are also well prepared for the planned EU directive on sustainability in supply chains.

Do you have any questions or would you like further information about LieSA?

Contact us!

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