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Supply Chain Sourcing Obligations Act

This week at the DSAG virtual congress, there was an enlightening discussion about the upcoming supply chain due diligence law.
Peter M. Färbinger, E3 Magazine
September 27, 2021
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This text has been automatically translated from German to English.

SAP's existing customers, DSAG and SAP itself largely agree on the direction and the goal. As with many other ERP topics, however, there are differences of opinion about the timing.

While SAP would like to analyze, optimize, design and then customize the challenges - as any engineer would do with project software - the user association is pushing for fast and standardized customizing so that the legal requirements are met by the end of 2022. Naturally, SAP's approach is more logical and also in line with common doctrine, but like much from Walldorf, it is unworldly.

Theoretically, I can organize an S/4 release change in a few months. In practice, however, there are always numerous modifications and Z functions, so the Green, Brown or Bluefield can also take several years.

Naturally, the existing SAP customer moves quickly into the cloud. However, if they want or need to leave the cloud again, there is no exit strategy in practice.

The Supply Chain Sourcing Obligations Act is an important and correct law. SAP's long-term goals are to be welcomed, but SAP should look more at the lived practice and the everyday concerns of its existing customers. Here, the sword of Damocles of the legislator counts more than the optimization of the digital transformation based on the business technology platform. This is not a judgment, but pragmatism.

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


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