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Why You Need to Know Who Supplies Your Suppliers

09/20/24 4 minute read

A host of regulations — some established, some new — are increasing the complexity of the compliance landscape and challenging supply chains. Many of these regulations are requiring global enterprises to beef up their supply chain mapping and risk management capabilities. 

Visibility far up or down the supply chain is no longer just a “nice to have,” but a compliance requirement. Read on to learn more about the new regulations to watch out for and how data can illuminate the insights you need for compliance. 

Regulation Roundup

Although recognized for reprioritizing forced labor as a top-tier compliance challenge, the UFLPA is by no means the only forced labor regulation multinational corporations must contend with. In recent years, new regulations have popped up around the world and there are no signs that point to things slowing down any time soon. 

Here’s just a few of the new regulations that supply chain teams need to keep their eyes on:

  • Corporate Sustainability Due Diligence Directive (CSDDD): EU legislation requiring companies to address human rights and environmental impacts in their supply chains.
  • Uyghur Forced Labor Prevention Act (UFLPA): U.S. law prohibiting imports linked to forced labor, particularly from China’s Xinjiang region.
  • German Supply Chain Due Diligence Act (LKSG): Law mandating German companies to manage human rights and environmental risks in their supply chains.
  • Norwegian Transparency Act (NTA): Norwegian law requiring companies to disclose efforts to address human rights and environmental impacts.
  • Swiss Supply Chain Act (VSoTr): Swiss regulation mandating corporate responsibility for human rights and environmental due diligence across supply chains.
  • EU Forced Labor Ban: Upcoming EU regulation prohibiting the import and sale of products made using forced labor within the European Union.
  • And many more

>> Cheat Sheet: Global Forced Labor Regulations <<

Gaining Supply Chain Visibility 

It can be easy to fall behind the flood of new regulations popping up across the globe. Importers can get ahead of the curve and build supply chain resiliency by conducting thorough risk assessments to mitigate the risk of modern slavery and forced labor through several tiers of their supply chain.

Sayari’s platforms utilize open source records and graph technology to map out connections and establish links between illicit actors, their infrastructure, and related business structures and transactions. Importers can leverage Sayari to move beyond list-based forced labor screening to get ahead of compliance mandates:

  • Proactively identify forced labor risk with 32+ risk indicators that flag industry-standard screening lists, as well as emerging forced labor risk typologies targeted by international regulators
  • Screen for 1.6+ million companies geolocated in Xinjiang and their trading partners around the world
  • Isolate sub-tier suppliers of interest with AI-enabled product blueprint technology to filter out the noise so you can better understand the suppliers that matter
  • Access analyst-curated risk insights from high-value sources such as the Sheffield-Hallam University reports on forced labor
  • Empower individual supplier review with entity profiles that detail corporate structures, trading partners, and risk indicators, all sourced to our global dataset

>> See how Sayari can be used to investigate global supply chains for forced labor <<

Sayari empowers trade compliance teams to quickly and confidently conduct due diligence on sub-tier supplier networks and rid their supply chains of forced labor to stay in compliance with the numerous emerging trade regulations. Sayari Map is trusted by global regulators across Europe and North America as well as the supply chain risk, trade compliance, procurement, and sourcing leadership teams in over 300 of the largest companies in the world. 

For examples and best practices for investigating sub-tier suppliers, watch our latest webinar: Who Supplies Your Suppliers? Understanding Your Supply Chain Tiers in an Evolving Compliance Landscape.

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