US News Heil increases pressure for the supply chain law

07:15  02 december  2020
07:15  02 december  2020 Source:   finanzen.net

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The global supply chain will face increasing pressure to incorporate sustainable practices, due to rising consumer awareness of environmental A case study of British Aerospace Systems (BAe) then establishes a set of best practices for the implementation of sustainable methods in a supply chain .

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In the struggle for a law against exploitation in the global production of goods, Federal Labor Minister Hubertus Heil increases the pressure on the Union.

«Ich bin nicht zufrieden, dass die Diskussion so lange dauert», sagt Hubertus Heil. © Michael Kappeler / dpa "I'm not satisfied that the discussion is taking so long," says Hubertus Heil.

"I am not satisfied that the discussion is taking so long," said the SPD politician to the German Press Agency in Berlin. If necessary, according to Heil, the heads of the Union and SPD with Chancellor Angela Merkel (CDU) should resolve the coalition conflict on the subject that has been smoldering for months.

Previously, the EU states had mutually asked the Commission to present a legal framework against abuses such as child labor or starvation wages. In the federal government, the project of a national supply chain law is currently on hold due to disagreement in the coalition. Economics Minister Peter Altmaier (CDU) fears that the burden will be too great for companies.

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International Supply Chains . - Increased Shipping time -Less reliable logistics -Tariffs and Quotas may block companies from doing business Designed to share risks, benefits, and create incentive structures to encourage supply chain members to adopt policies that are optimal for the entire chain .

Heil said: "It has to be implemented in this legislative period." The coalition agreement in this area is clear. Companies would have to take care of their human rights responsibility. "The point is that in a social market economy, profits are not made through child or slave labor in other parts of the world," emphasized the Minister of Labor. "So actually a matter of course, one would think."

"There are also some in the Union who want that," said Heil. Federal Development Minister Gerd Müller (CSU) had called for a decision before Christmas. Müller recalled that he and Heil's key points had been available for four months. "The blockade of some business associations must not lead to a law in this legislative period being prevented," said Müller to the newspapers of the Funke media group.

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A supply chain operational philosophy focused on integrating the supply management and demand-generating function of an organization - internal. Bundles of interconnected activities that stretch across firms in the supply chain . Represent key areas that some or all involved firms are constantly

Supply chain coordination requires each stage of the supply chain to take into account the impact its actions have on other stages. A reduction of lot sizes increases the amount of fluctuation that can accumulate between any pair of stages of a supply chain , thus increasing the bullwhip effect.

Heil said: "We should get this done as soon as possible, preferably even before Christmas." Müller and he are ready to clarify this quickly. “The coalition can send a good Christmas message here. To be clear: If some play for time, sooner or later that will also be an issue in the coalition committee. " He wanted a supply chain law that would make companies really care.

At the European level, the EU states passed a council resolution on Tuesday for a European due diligence law. According to the will of the states, the commission should make a proposal on how companies should be obliged to exercise due care along global supply chains.

Heil reminded of the existing self-commitment of the companies. «Less than 20 percent of companies adhere to it. And we're only talking about large companies here. " More and more companies are demanding a supply chain law, ”said Heil. They took care and did not want to be put at a competitive disadvantage compared to other companies. “Whether in the textile industry, with agricultural products or the extraction of raw materials for electric mobility - it's a growing topic,” says Heil.

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This is interesting!