NTT DATA implemented 3rdRisk to comply with the German Supply Chain Act in 5 weeks

Harry Springer is Team Lead Procurement & Logistics at NTT DATA DACH. Carsten Hoffmann is responsible for the Central Purchasing Department of NTT DATA DACH. Together they are in charge of supplier risk management as well as compliance with the German Supply Chain Act (LkSG).

The challenge

NTT DATA DACH, one of the largest consulting firms in Germany, Austria, and Switzerland with over 1,700 suppliers, faced a significant challenge: implementing a tool to ensure compliance with the German Supply Chain Act (LkSG) within a very short timeframe. The German Supply Chain Due Diligence Act mandates comprehensive due diligence obligations for companies to identify, prevent, and address human rights and environmental risks within their supply chains. This due diligence includes regular assessments as well as real-time monitoring of adverse events.

The law came into effect on January 1, 2023. Companies with 3,000 or more employees are initially subject to this law, with the threshold lowering to 1,000 employees in 2024.

Carsten: "For us it was a challege to implement a tool to fulfill the requirements from the German Supply Chain Due Diligence Act before 2024." Harry adds: "The challenge was that, due to the fact that we have more than 1700 active suppliers, it was not possible for us to assess all these suppliers related to the regulations. Therefore we were looking for a tool to support us here."

The solution

Harry: "The main reason to choose 3rdRisk was that they promised a a very short timeframe for the tool implementation. In addition, they made a real good job to present themselves in different stakeholder meetings as real third-party risk management experts." Carsten: "The onboarding and implementation process with 3rdRisk was very succesful. The guys and girls delivered all milestones in time without many defects, in front of our testing phase." Harry: "The implementation process together with 3rdRisk was managed in a very structured way. And in the same time, they were really flexible in terms of complying with our requirements and the requirements of the LkSG. So therefore it was an extremely good collaboration between 3rdRisk and NTT DATA. Carsten: "We had a very good cooperation in the whole project team."

The results

Harry: "The main result and even the main target was that we have had a tool implemented on 1st of January of 2024 and we have even gone live on 22nd of December 2023. So we could start even nearly two weeks before the original required date. In addition, we have now a tool where we can completely process our qualification and onboarding process of all our suppliers. These are the main results. We even plan to extend the usage of the platform more." Carsten: "The benefits and the results with the 3rdRisk platform is the usability. We have a very high usability for new joiners and users on the platform. Another key benefit is the 24/7 monitoring regarding potential risks. This would not have been possible for us without the 3rdRisk platform."

Harry: "What we love most or what the users love most of the platform is actually the usability of the product, it is very easy to use for the suppliers as well. And finally, we love the flexibility and speed of the support of the 3rdRisk team." 

Why 3rdRisk

Carsten: "In my opinion, 3rdRisk is a company with a lot of flexibility. We have chosen 3rdRisk as our provider because we have very great value of money. And for this reaons, together with the speed of implementation, we choose 3rdRisk." Harry: "I would definitely recommend 3rdRisk as a tool solution because of the good collaboration we had with 3rdRisk. The perfect implementation we faced during the project. And the usability of the platform. Usability for internal users but also for our suppliers." Carsten: "I would recommend 3rdRisk as a provider because 3rdRisk has a lot of experience regarding risk management and delivers projects in time."

"We have chosen 3rdRisk as our provider because we have very great value of money." Carsten Hoffmann, Head of Central Purchasing Department NTT DATA DACH.