Raw Material Availability is the Biggest Challenge For Manufacturers

By: Trademagazin editor Date: 2022. 09. 26. 09:36

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Procuring quality raw materials in sufficient quantities is getting increasingly difficult for many companies due to the current geopolitical and ecological crises as well as the pandemic, the Federation of German Food and Drink Industries (BVE) has said.

Risks along the supply chain have been steadily increasing in recent years, the study noted

A new study by AFC Risk & Crisis Consult (AFC) in cooperation with the BVE examined the challenges facing food manufacturers and how companies are attempting to solve these challenges in supply chains that have become complex and unreliable in recent times.

The study included 412 industry employees responsible for risk and crisis management. Risks along the supply chain have been steadily increasing in recent years, the study noted.

Following on from this period of crisis-hit supply chains, the German Supply Chain Due Diligence Act is set to be introduced in 2023. This new act would require companies to comply with and document social and environmental due diligence along all their supply chains. Around 65% of German companies have been preparing for the new act, or have initiated measures, with 22% feeling well-prepared. However, not all of the companies surveyed by BVE fall within the scope of the LkSG, so not all have concrete action plans in place, the study noted.

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