{"id":4230,"date":"2024-09-09T10:24:55","date_gmt":"2024-09-09T10:24:55","guid":{"rendered":"https:\/\/verso.de\/blog\/compliance-in-the-supply-chain-how-the-bicycle-industry-is-mastering-the-task\/"},"modified":"2026-02-10T09:59:40","modified_gmt":"2026-02-10T09:59:40","slug":"compliance-in-the-supply-chain-how-the-bicycle-industry-is-mastering-the-task","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/compliance-in-the-supply-chain-how-the-bicycle-industry-is-mastering-the-task\/","title":{"rendered":"Compliance in the supply chain: How the bicycle industry is mastering the task"},"content":{"rendered":"\t
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09.09.2024<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

Compliance in the supply chain: How the bicycle industry is mastering the task <\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\tSustainability regulatory obligations are increasing and compliance in the supply chain is becoming ever more important. Read our article to find out how companies fullfil the ESG requirements for the supply chain and how VERSO specifically supports the bicycle industry in this task. \t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\n\n\t

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The economy is undergoing a profound change. More and more companies are integrating sustainability into their business models. This topic is also becoming increasingly important in the bicycle industry \u2013 especially in relation to the supply chain, as this is where the greatest risks and the greatest impact of bicycle manufacturers lie. <\/span> <\/span><\/p>\n

Two factors play a key role. Firstly, many companies are launching sustainable initiatives to improve their environmental footprint. This enables them to generate business value and <\/span> Competitive advantages. <\/span> <\/span><\/p>\n

On the other hand, regulatory pressure is growing \u2013 including through<\/span>the<\/span>CSRD reporting obligation<\/span><\/a>, the <\/span>CO<\/span>2<\/span>-border-adjustment mechanism CBAM<\/span><\/a> and the <\/span>EUDR regulation for deforestation-free supply chains<\/span><\/a>. <\/span>Compliance with sustainability requirements is becoming mandatory.<\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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CSRD, EUDR and CBAM: New requirements for compliance in the supply chain <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

There are numerous new requirements in the area of sustainability that also affect the bicycle industry. The CSRD, the EU directive on sustainability reporting, plays a major role. Companies have to provide extensive ESG information \u2013 and not only consider their own company, but also the supply chain. We have summarised what exactly is required in our blog post \u201eCSRD and the supply chain<\/a>\u201d. However, the industry is also confronted with new obligations arising from the use of certain raw materials. For example, companies are subject to the EUDR because rubber is used for bicycle tyres. By using CO2-intensive materials such as aluminium or steel, companies may also be affected by CBAM. Both regulations include an assessment of certain raw materials as well as a documentation and reporting obligation. Those who create transparency here and thus address the risks identified have created the basis for fulfilling almost all requirements and compliance in the supply chain. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Compliance in the supply chain: the challenge of a complex supply chain <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Cycling<\/span><\/a> is \u2013 apart from walking \u2013 the most environmentally friendly form of transport: emission-free, quiet, efficient and climate-friendly. However, this only applies to pedalling. When it comes to the production of bicycles, especially e-bikes, the balance is somewhat different. <\/span> <\/span><\/p>\n

In addition to emissions \u2013 including CO<\/span>2<\/span>-intensive materials \u2013 the use of high-risk materials also plays a role. “Raw materials for motors, electronics and batteries are associated with major sustainability risks,” explains Klaus Wiesen, Head of Sustainable Supply Chain at VERSO. In addition, the bicycle industry often has complex supply chains. This makes it all the more important to create transparency with regard to these issues and reduce risks. <\/span> <\/span><\/p>\n

The complexity of the supply chain results from the large number of players involved in the production of the numerous components of a bicycle or e-bike. These players are distributed internationally, which results in different framework conditions and long transport routes. <\/span> <\/span><\/p>\n

Compared to conventional bicycles, e-bikes bring additional challenges. New technologies and raw materials for the drive and battery have become relevant in production. Here, bicycle manufacturers are competing with industries such as the IT sector, with which they previously had little contact. <\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\n\t

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CSRD and supply chain: these disclosures are required<\/h3>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t

The CSRD obliges companies to provide extensive information on the supply chain. Find out what information is required and what opportunities and risks arise from the EU directive. <\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTo the blog post<\/span><\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n<\/section>\n\n\t\n\n\n\t
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The growing importance of transparency and data management <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

“Transparency in the supply chain is the key to complying with current and future regulations,” emphasises Klaus Wiesen. Many VERSO customers have voluntarily established corresponding processes before they are obliged to do so by regulations such as the Supply Chain Act (LkSG). <\/span><\/p>\n

Riese M\u00fcller<\/span><\/a> is a pioneer in the bicycle industry and aims to be the most sustainable company in the e-bike sector by 2025. With the <\/span>VERSO Supply Chain Hub<\/span><\/a> the company creates the necessary transparency in the supply chain and promotes its suppliers in terms of sustainability. Riese M\u00fcller is also improving risk management and supply chain mapping to ensure compliance in the supply chain. <\/span><\/p>\n

However, not all companies in the bicycle industry are that advanced. A key problem is the collection and management of data along the supply chain. Smaller manufacturers in particular have some catching up to do. <\/span><\/p>\n

“Many companies have hardly collected any structured data, which now presents them with considerable challenges if they want to fulfil the requirements of CSRD<\/a>, CBAM<\/a>, EUDR<\/a> and other regulations,” says Klaus Wiesen. This is where VERSO comes in and offers solutions to support companies in realigning their processes and fulfilling the requirements. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Compliance in the supply chain: benefiting from the network<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

VERSO is the bicycle industry’s leading platform for sustainability in the supply chain. Their customers include German companies such as Riese M\u00fcller as well as international manufacturers – for example from the Netherlands, Switzerland and the USA. <\/span> <\/span><\/p>\n

“As there is a large overlap in the supplier base in the bicycle industry, our customers benefit from the networks created and stored in our software,” explains Klaus Wiesen. All customers also benefit from learning effects from previous projects. VERSO integrates new regulations into its software at an early stage to ensure future compliance in the supply chain. <\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\n\t

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EUDR: Everything you need to know <\/h3>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t

The EU regulation for deforestation-free supply chains (EUDR) aims to prevent the ongoing deforestation of forests. In our article, we answer the most important questions about the EUDR. <\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTo the blog post <\/span><\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n<\/section>\n\n\t\n\n\n\t
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Leveraging supply chain ompliance as a chance for the bicycle industry <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

The regulations are not only associated with additional tasks. They also open up new opportunities for companies. <\/span> <\/span><\/p>\n

One example is risk management. Companies in the bicycle industry have suffered particularly badly from supply bottlenecks in the past. Resilience in the supply chain has therefore become an important issue. <\/span>By identifying risks (e.g. political instability, natural disasters or human rights violations), a company can take measures to minimize or avoid the impact of these risks. This ensures robust supply chains. <\/span> <\/span><\/p>\n

Bicycle manufacturers’ customers often attach great importance to sustainability. Those who fulfill the compliance requirements show that their company takes responsibility for ethical and <\/span>environmentally friendly standards in the supply chain. This creates trust, provides a competitive advantage and contributes to the long-term success and good reputation of the brand. <\/span> <\/span><\/p>\n

Avoiding reputational damage and penalties also plays a role. Companies that do not fulfill their regulatory obligations must expect sanctions. We have summarised possible penalties in the blog post <\/span>\u201e<\/span>Sanctions at a glance: The cost of mistakes in reporting and implementing sustainability<\/span><\/a>\u201d for an easy overview. <\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Holistic sustainability management at VERSO <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

In order to fulfill the requirements, companies should prepare for the new regulations at an early stage. Thanks to our expertise in the bicycle industry (among others) VERSO is the ideal partner. “With the <\/span>VERSO Supply Chain Hub<\/span><\/a> we have been supporting our customers for years with transparency in the supply chain and the fulfillment of their due diligence obligations. Our software solution enables optimized preparation for current and future regulations,\u2019 emphasizes Klaus Wiesen. <\/span> <\/span><\/p>\n

The supply chain harbors the greatest risks and has the greatest impact in the bicycle industry. However, a holistic view of a company is necessary, particularly with regard to CSRD. This includes the upstream and downstream value chain as well as the company’s own business activities. VERSO offers an all-in-one solution here. <\/span> <\/span><\/p>\n

With the <\/span>VERSO ESG Hub<\/span><\/a> you can collect all relevant data and create a meaningful sustainability report. With the <\/span>Climate Hub<\/span><\/a> the corporate carbon footprint is calculated and a climate strategy is mapped. The VERSO sustainability experts will support you throughout the entire process. Furthermore, you can gain additional know-how about sustainability in our <\/span>VERSO Academy<\/span><\/a> courses. <\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

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The importance and future of sustainable supply chains: Interview with Klaus Wiesen<\/h4>\n\n\t\t\t\t\t\t\t\t
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