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Managing Asian Suppliers : Strategies of Selected Dutch and German Companies Under the New EU Supply Chain Law

Heuker, D.J. (2025) Managing Asian Suppliers : Strategies of Selected Dutch and German Companies Under the New EU Supply Chain Law.

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Abstract:The EU supply chain law, also known as the CSDDD, stands for corporate due diligence beyond direct suppliers; one of the biggest challenges for affected companies. Many procurement specialists perceive the law as impractical due to the significant challenges associated with overseeing suppliers and their sub-suppliers. This study examines which strategies Dutch and German companies with Asian suppliers use or will use to comply with this law. The findings highlight challenges and strategies to cope with these challenges. Nine interviews were conducted with procurement specialists from affected companies. The findings highlight that companies often have a risk-based approach, where they prioritize their high-risk suppliers instead of focusing on monitoring all suppliers. Also, EcoVadis is mentioned often, and it became clear that multiple companies use EcoVadis for supplier risk assessment. Next, many companies rely on contractual clauses, where Tier 1 suppliers are responsible for their Tier 1 suppliers, and so on. This makes sure that all parties are responsible for their own direct suppliers. Also, the usage of whistleblowing mechanisms is mentioned. Such a mechanism facilitates confidential reporting of violations. Multiple interesting strategies are mentioned, however, firms are advised to start with incremental steps.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/105430
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