Do you want to fulfil the legally required due diligence obligations in your supply chain efficiently and reliably? With our LkSG software, you can implement preventive measures and maintain an overview of all associated activities at all times. Our solution ensures maximum transparency and security along the entire supply chain.
Risks in the supply chain are systematically identified and rated to enable preventive measures to be taken.
Implemented measures are continuously monitored and transparently documented by otris diligence.
Automated reports provide an up-to-date overview of all activities, risks and measures.
Our LkSG tool at a glance
Our software for the Supply Chain Due Diligence Act has a modular structure. This means that you choose a basic version (edition) and expand the range of functions with additional modules. This allows you to put together a solution that is perfectly tailored to your needs from different software editions and modular extensions. On request, we can also integrate your specific company processes into the application. The goal: a customised solution that meets your requirements and can be adapted at any time.
Procurement structure
Our LkSG software visualises the relationships between suppliers, upstream suppliers and products. Using web forms, supplier self-assessments can be easily obtained and integrated into the system to support risk analysis.
Abstract risk analysis
The software carries out an abstract risk analysis based on the supplier data. With the help of an LkSG index and other industry indices, the risk for each Supplier is rated and prioritised. External databases and self-assessments supplement the risk analysis.
Risk and action management
Following the abstract risk analysis, the software assesses specific human rights and environmental risks and defines preventive and remedial measures. Workflows support the organisation and control of these measures as well as their regular review and updating.
Complaints centre
The solution integrates LkSG complaints procedure software. The function module for the complaints procedure is based on the Whistleblower System from otris software AG and fulfils the requirements of the LkSG. Incoming complaints are assigned to suppliers and risks and are included in the risk analysis.
Reports and analyses
Our LkSG software creates standardised evaluations and reports from supplier data, complaints, risk analyses and measures in order to fulfil the obligations to provide evidence in accordance with the LkSG and provide a comprehensive overview of compliance activities.
Supplier management
Manage your suppliers efficiently and always keep an overview of all supplier relationships. Supplier self-assessments can be easily obtained via web forms and integrated into the system to support risk analysis.
Abstract risk analysis in otris diligence
Abstract risk analysis is at the centre of the system. All suppliers are rated with regard to potential risks on the basis of various criteria. The analysis process at a glance:
Risk classification Country/sector indices for rating abstract risks.
The classification is based on country or industry indices or a combined country/industry index. This enables a rating of the suppliers with regard to the abstract risks specified in the LkSG. Suppliers thus receive a clear assessment of whether a risk relevant to the LkSG is potentially to be expected due to their location and industry.
Supplier assessment Self-assessments and external data sources.
Further criteria for the abstract risk analysis are the answers from the supplier questionnaires (self-assessments) and information from complaint management. In addition, the application has an interface to the Amfori supplier database so that the ratings of the companies listed there can be queried and assigned to the respective suppliers. Other external sources can be integrated on a customer-specific basis.
Risk classification Five-level supplier ranking.
The result of the abstract risk analysis is a five-level classification of suppliers from A (green) to E (red). The list of business partners to be analysed can be further narrowed down using additional criteria such as Turnover or ABC classification. This reduces the number of potentially problematic suppliers and allows you to focus on the really important suppliers with the highest risk potential.
Why you should use LkSG software from otris
LkSG software (Supply Chain Due Diligence Act software) involves more than just managing supplier data. Effective supply chain management generates added value by standardising the analysis, rating and documentation of risks in the supply chain. Employees can immediately find the information they need to make informed decisions: e.g. risk classifications, risk minimisation measures or correlations between different suppliers and products.
As an LkSG software provider with over 25 years of experience in compliance-related topics, we have developed an LkSG solution that is characterised by the following features:
Usability Simple and intuitive.
All otris solutions have one thing in common: the focus is on ease of use and a well thought-out software interface. Good usability is a prerequisite for new users to be able to use the software productively quickly.
Interfaces Use external data.
The system compares the supplier data with selected external databases as standard (e.g. sanctions list comparison). Other databases that are to be used for checks can be easily integrated via interfaces.
Scalability Easy to expand.
Both the range of functions and the number of users can be easily expanded according to requirements. Also possible: the integration of supplementary otris solutions from compliance-relevant areas (e.g. Contract management, Investment management, Policy management).
On-Premises or Cloud. Operating mode selectable.
The LkSG solution can be operated both on-premises and in the otris Cloud. With the on-premises version, the solution is operated on a server in your own data centre. With the cloud version, you access a server in the otris Cloud.
Compliance management software for special requirements
Feedback from our customers and Interested Parties shows how diverse the requirements for a digital compliance management system are. In order to optimally cover individual requirements, otris customers combine the specialised solutions of the otris compliance SUITE with each other and, if required, with the solutions of the otris legal SUITE and the otris privacy SUITE.
How does our LkSG software work in practice?
Whether due diligence obligations are practised and complied with is also a question of the company’s internal organisation. Starting with the structuring of all procurement and company information, through a standardised risk analysis with assessment procedures to measures, audit routines and reportingg. The otris supply chain due diligence software supports you throughout the entire process:
Inventory & supply chain mapping Data analysis and visualisation.
A thorough inventory is carried out before analysing and rating. This applies to relevant data on suppliers, upstream suppliers, supplier relationships and product types as well as in relation to the company itself.
The system structures the data from the inventory into clearly organised information. Visualisations illustrate the relationship between the company and the respective suppliers and which product types the deliveries fall under. You can navigate to all linked information via companies, production sites, product types or suppliers.
Prioritisation and Risk assessment LkSG index and filter mechanisms.
The application uses several filters to prioritise the information.
One of these filters is the LkSG index. Depending on the abstract risks specified in the law, it shows how risky a particular industry is in a country. The data is based on the NACE categorisation for industries and the country code according to ISO 3166. The index was developed by a renowned law firm and is updated regularly. The LkSG index and other performance indicators, supplier self-reports and data from external databases are used to determine the risk potential of individual suppliers.
Such pre-categorisation enables a clear prioritisation of the overall supplier portfolio: Which suppliers fulfil certain criteria that indicate a high risk potential (e.g. sales volume of the business relationship, importance of the services supplied for the company’s own products, but also general criteria such as region or industry)? And how much influence does the company have over the Supplier? The filters support a step-by-step refinement to identify the risks / supplier relationships / business practices that need to be addressed with high Priority. A well-structured prioritisation supports you in doing the most important things first and verifiably documenting the fulfilment of your due diligence obligations.
Risk assessment Analysis, classification and visualisation.
Once the material risks have been structured in the system, they can be rated. The application follows the risk analysis guidelines of the Agency for Business & Development. After classifying the specific risks in terms of probability of occurrence, extent, scope and irreversibility, the LkSG risk analysis software visualises the Overall rating of severity using a diagram and a traffic light symbol, so that the need for action is quickly apparent.
Digital complaints centre Anonymous tips and Risk assessment.
The otris LkSG tool contains a digital complaints centre that whistleblowers can use to submit complaints anonymously. You assign incoming information to the respective Supplier in order to include it in the abstract risk analysis, the concrete risk assessment and the management of measures.
Measure management Remedy and prevention.
The risk analysis and complaint management provide information on where measures need to be taken to remedy the situation. In addition, the LkSG prescribes measures for prevention. otris diligence contains a complete measure management system that supports you in defining, implementing and monitoring measures. Standard measures for remedial or preventive action, which are also already proposed by BAFA, can be stored in the application and included in risk management as required.
Supplier file Master data, documents and ratings.
In addition to the Master data, the supplier file also contains all documents and ratings associated with the supplier in a clearly organised format.
Here you can see at a glance which risks and measures are pending with the respective supplier, what rating they have, what the supply structure looks like and which product types are affected.
You can also store requested documents and certificates in the supplier file. An automated validity check can be used to prompt the supplier to submit a new, valid certificate before the old document expires.
BAFA compliance Question catalogue and report preparation.
In Germany, the BAFA (Federal Office of Economics and Export Control) is responsible for compliance with and verification of the LkSG regulations. The current guideline is available in the form of a catalogue of questions that provides information on the steps and measures expected of companies. The otris LkSG tool is used to create a template for the BAFA questionnaire with data from risk, complaint and action management. The template can be supplemented with further conclusions and other information and is used for internal decision-making within the company.
otris diligence increases security and efficiency in your supply chain
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Test the LkSG solution otris diligence now for free!
Would you like to get to know a user-friendly LkSG tool that makes your supply chain more transparent? We cordially invite you to a guided demo with one of our experts. With otris diligence you optimise your due diligence management and stay in control of risks, measures and compliance. Contact us today and arrange your personal demo appointment!
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FAQs: Frequently asked questions about the LkSG software
What is LkSG software and how does it support my company?
LkSG software supports companies in fulfilling the requirements of the Supply Chain Due Diligence Act by systematically identifying and analysing risks in the supply chain and implementing measures to minimise risks.
What is LkSG?
The Supply Chain Due Diligence Act (LkSG) is a German law that obliges companies to fulfil human rights and environmental due diligence obligations.
What are typical functions of LkSG software?
Typical functions include risk analysis, action management, documentation of supplier data, reporting, integration of sanctions list checks and complaint management.
How secure is the data in LkSG software?
This depends on the software provider. The LkSG software from otris fulfils the highest security standards and ensures that all data is archived in an audit-proof manner and in compliance with legal requirements.
