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 .