🇩🇪Germany

Ineffiziente Lagerbestände und Mehrfachhandling – Supply Chain Act (LkSG) Overhead

2 verified sources

Definition

LkSG mandates supply chain due diligence, including material provenance verification and risk assessment. Manual, location-based inventory systems cannot optimize reorder points or identify slow-moving stock by location. This causes: (1) Extended dwell times (materials stored 10–20% longer than optimal), increasing warehouse costs; (2) Unnecessary material relocations within facility (from intake to staging to sorting to dispatch), multiplying labor; (3) Duplicate verification steps at each location; (4) Supplier compliance overhead due to lack of automated traceability.

Key Findings

  • Financial Impact: €3,000–€12,000 annually (warehouse overhead: €8–€15/pallet/month × 30–50 excess pallets × 12 months); 15–25 hours/month excess labor in material relocation and re-verification
  • Frequency: Continuous; compounded monthly
  • Root Cause: No integrated inventory optimization linked to material grades and locations. Manual system cannot forecast optimal inventory or automate reorder workflows.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Wholesale Recyclable Materials.

Affected Stakeholders

Warehouse Manager, Procurement, Logistics Coordinator, Compliance Officer

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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