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On November 19, 2024, the Council of the European Union finally passed the “Regulation on Prohibiting Products Made with Forced Labor in the EU Market.” This regulation will be published in the “Official Journal of the European Union” after being signed by the President of the European Parliament and the President of the Council of the European Union, and it will take effect the day after publication, becoming applicable three years after its effective date. As major exporters, companies like DJI, Haier, and Midea have to adjust their work policies to comply with EU regulations, ensuring that their products can smoothly enter the EU market.<\/span><\/p>\n <\/p>\n It is worth noting that forced labor is a lever, while supply chain management is the essence. <\/b>In the face of an increasingly stringent global trade compliance environment, companies not only need to “benchmark” against regulatory models but should also accelerate their digital transformation efforts, systematically laying out from supply chain visibility management, ESG responsibility fulfillment, compliance auditing, to risk monitoring. Against this backdrop, as the second largest trade partner of the European Union, how can export enterprises in China build a high-quality supply chain and cleverly “respond”?<\/span><\/p>\n <\/p>\n One<\/b><\/span><\/p>\n The EU’s new regulations are a “triple whammy,” leaving enterprises trembling in fear?<\/b><\/span><\/p>\n <\/p>\n 1.Prohibition scope: From screws to the entire machine, the whole industry chain is “clearing mines.”<\/b><\/span><\/p>\n The EU this time is “better to mistakenly kill a thousand than to let one go!” The regulations explicitly prohibit the sale, import, or export of any products made using “forced labor” in the EU market, covering all industries and stages of the supply chain. This means that companies need to conduct a thorough investigation of the entire industry chain, including the production processes of raw materials, components, and final products. Once forced labor is detected, they may face the risk of being banned from entering the EU market, and their products could face the risk of being “left out in the cold.”<\/span><\/p>\n <\/p>\n 2.Survey methods: The EU’s “water meter check” makes enterprises become “transparent individuals” in an instant.<\/b><\/span><\/p>\n The European Commission and the member states form a “Check Task Force” that can conduct surprise inspections at any time! In addition to the investigations conducted by the European Commission in the International territories, the responsible departments of each member state also undertake investigation work within their own territories. The investigation procedure includes preliminary investigation and formal investigation. If there are indications that the enterprise may have forced labor, the relevant departments can conduct further on-site inspections, request a large amount of due diligence <x1>data<\/x1>, and provide a response within a certain <x2>term<\/x2>. Companies that do not cooperate or cannot provide qualified evidence may be judged unfavorably in the assessment, resulting in the product being banned from release or being forcibly withdrawn.<\/span><\/p>\n <\/p>\n 3.Penalty severity: One violation, “ruining your future”?<\/b><\/span><\/p>\n If an enterprise cannot prove that its product does not involve forced labor, once it is listed on the violation list, the product will be prohibited from entering or will be withdrawn from the EU market. At the same time, member states will establish corresponding penalty rules, and violating companies may face additional administrative fines or other legal liabilities, with serious cases resulting in the loss of opportunities in the EU market.<\/b><\/span><\/p>\n <\/p>\n Two<\/b><\/span><\/p>\n Enterprise Challenges and Risk Alert<\/b><\/span><\/p>\n 1.For enterprises exporting to the European Union: The compliance threshold has been significantly raised.<\/b><\/p>\n The pressure for compliance across the entire supply chain has sharply increased: <\/b>The “dark history” of a single screw can make your million-dollar order evaporate in an instant. Companies must ensure that there is no forced labor at any stage from raw material extraction, production, manufacturing to final goods delivery. Even if there are doubts about a supplier at a certain <Stage>, it may affect the product compliance of the entire supply chain. It is necessary to ensure that every <Step> from the ore extraction to the finished product <Factory> is “clean and clear.”<\/span><\/p>\n A brand can collapse with just a single ban: If violations are detected, not only will there be direct losses from the product being banned or <Withdraw>, but there will also be pressure from brand damage and additional <Expense> for disposal.<\/span><\/p>\n <\/p>\n 2.For enterprises that do not directly export to the EU: Indirect risk should not be overlooked either.<\/b><\/span><\/p>\n “Matryoshka-style” multi-layer supply chain review: <\/b>If a company’s products ultimately pass through multiple trade stages to enter the European Union, they also need to face forced labor sourcing scrutiny. Suppliers of multinational enterprises must also meet their global compliance standards. Once investigated, the EU can trace it back to you through the supply chain!<\/span><\/p>\n The global compliance wave is in full swing: <\/b>Apart from the European Union and the United States, other countries and regions are also planning similar forced labor restrictions. Even if the enterprise is not involved in the EU market, it needs to prepare in advance to respond to the potential wave of global forced labor compliance.<\/span><\/p>\n <\/p>\n Three<\/b><\/span><\/p>\n Digital Supply Chain and Compliance Management help you clear customs.<\/b><\/span><\/p>\n In response to the challenges posed by the EU Forced Labor Regulation, companies need to establish a compliance system of “Digital + Management” from top to bottom, focusing on the full process and the entire supply chain. Kingdee has been deeply engaged in enterprise digital management for decades and can provide the following key support for businesses:<\/span><\/p>\n 1.Digitalization of the entire supply chain, breaking down information silos.<\/b><\/p>\n Supplier Information Management: Through the Kingdee Procurement Cloud solution, it is possible to centrally manage supplier information, qualification documents, and compliance statements; real-time updates on supplier compliance status (such as forced labor risks and child labor risks) can be conducted along with tiered management. and supports real-time risk monitoring of the regions or industries where suppliers are located by integrating with external databases through the system (such as the high-risk products and regions database planned for launch by the European Union), avoiding “blind spots.”<\/span><\/p>\n Supply Chain Visualization and Traceability: <\/b>With Kingdee’s cloud-based intelligent supply chain solution, enterprises can track the sources of raw materials, production processes, transportation stages, etc., forming an “end-to-end” visualization of supply chain management. When the responsible department initiates an investigation, it can quickly provide compliant supply chain data, reducing the difficulty of proof and time costs.<\/span><\/p>\n <\/p>\n 2.Workforce management and compensation compliance monitoring, making the EU “bulletproof.”<\/b><\/span><\/p>\n Integration of Employee Information and Payroll System: Kingdee Human Resource Cloud is linked with the Salary Distribution system, automatically cross-referencing legal labor standards, overtime duration, etc., to avoid suspicions of forced labor such as “insufficient payroll, delayed distribution, or deductions.”<\/span><\/p>\n <\/p>\n 3.Compliance Control<\/b><\/span><\/p>\n Compliance data collection and audit: <\/b>Kingdee Cloud Cosmic Platform can help enterprises build a compliant data collection platform. Through rule configuration or AI algorithms, it monitors key data in the supply chain, labor management, and production processes in real-time. Once risk information is matched (such as a supplier’s locations being listed as high risk or abnormal labor employment data), the system automatically issues a warning.<\/span><\/p>\n Compliance approval and flow management: <\/b>By using the workflow management feature in the Kingdee Cloud product, the compliance review of forced labor will be integrated into the company’s overall business flow. Companies can set a systematic approval process to ensure that any new suppliers or changes to key production elements by existing suppliers undergo a forced labor risk assessment and approval.<\/span><\/p>\n <\/p>\n Four<\/b><\/span><\/p>\n Transform challenges into opportunities and build a high-quality supply chain.<\/b><\/span><\/p>\n Compliance is not a “tightening spell,” but a “passing lane!” The new EU regulations seem like a “roadblock,” but in fact, they are a “godsend” for enterprises’ supply chain upgrades! In the new era and new trends, Kingdee will fully leverage over thirty years of deep accumulation to continue innovating and enhancing the product capabilities of Kingdee Cloud Supply Chain Management, safeguarding the transformation and upgrading of enterprise supply chains, building a new mode and new business format for digital supply chains, and achieving high-quality development.<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Recently, according to relevant media reports, starting from February 27, DJI has launched a “No Overtime” campaign, requiring employees to punch out by 9 PM; Haier has also proposed mandatory two-day weekends, cutting off the “backdoor” for overtime; in addition, Midea Group has issued internal documents to simplify work methods and eliminate formalism… From “996” […]<\/p>\n","protected":false},"author":27,"featured_media":3115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[15],"tags":[],"by_industry":[],"by_product":[45],"by_topic":[],"class_list":["post-2466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","by_product-supply-chain-management"],"yoast_head":"\n![\"\"](\"http:\/\/global.780345.com\/qa\/wp-content\/uploads\/sites\/6\/2025\/07\/\u56fe\u724737-1-1024x860.png\")
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