TRANSFORMING THE ROLE OF PROCUREMENT TEAMS
The CSDDD significantly redefines the responsibilities of procurement teams, necessitating a more comprehensive approach to supplier management. Key areas of impact include:
• Supply Chain Compliance Procurement teams must ensure all suppliers – including deep-tier suppliers – adhere to the directive’ s standards for human rights, environmental protections and ethical practices.
• Supplier vetting and risk assessment New tools and processes must be developed for evaluating supplier performance and risk assessment, especially when considering alternative suppliers.
• Contractual obligations Procurement teams will need to review, amend and renegotiate contracts to align with CSDDD requirements, ensuring terms remain fair for SMEs.
• Support for suppliers The directive mandates that larger companies assist their suppliers, particularly SMEs, through training, capacity building and financial aid where appropriate.
• Traceability and monitoring Implementing robust systems to trace goods’ origins and monitor supply chain compliance.
• Documentation and expertise Meticulous record-keeping of due diligence activities is essential. Procurement teams must develop sustainability and human rights expertise to manage compliance effectively.