The Challenge: Balancing Regulatory Demands and Business Viabiliy
The Challenge: Balancing Regulatory Demands and Business Viabiliy
Small and medium-sized enterprises are increasingly confronted with growing regulatory requirements - particularly as a result of the German Supply Chain Act (LkSG) and its European equivalent (CSDDD), data protection requirements (e.g. GDPR) and international sanction regulations. As suppliers to larger companies subject to ESG requirements, they are under increasing pressure to provide evidence of human rights, environmental and ethical standards.
These requirements demand not only detailed documentation, but also robust processes for risk analysis, contract maintenance and compliance - a considerable effort for companies with limited resources. For instance, the reconciliation of supply conditions between the players in the supply chain - i.e. the agreement and acceptance of supplier codes of conduct (SCoCs) - is a time-consuming process that is often associated with high legal consultancy costs. At the same time, customers and markets increasingly expect transparency, sustainability and digital maturity along the entire supply chain. Those who fail to meet these expectations risk exclusion from tenders, loss of image or economic disadvantages.
AI-Powered Compliance and Contract Intelligence for Global Supply Chains replace
SMARTCHAIN is an intelligent platform that uses generative AI to simplify complex contractual processes along the supply chain. Whether for the German Supply Chain Act (LkSG), data processing contracts or sanctions compliance issues - the AI agents help companies to implement legal requirements efficiently, automatically and comprehensibly. By reducing bureaucracy, SMARTCHAIN creates space for the essentials: The capacity to act, sustainability and competitiveness. In this context, the perfect integration of the solution into the processes of large and internationally active companies is a key prerequisite for its acceptance.
The SMARTCHAIN platform combines various digital tools based on generative AI: From automated contract creation and review to smart management of complex regulatory requirements. The aim is to standardize processes, document compliance in a traceable manner and identify risks at an early stage. At the same time, other areas of application such as ESG reporting or checking business relationships for compliance with sanctions can be integrated into the platform - in a modular, practical and scalable way.
Who Is SMARTCHAIN Intended For?
SMARTCHAIN is specifically aimed at small and medium-sized enterprises (SMEs), which make up around 99 percent of all companies in Germany and thus form the backbone of the German economy. In particular, suppliers, manufacturers, and service providers faced with complex supply chains and growing regulatory requirements are to be supported by the platform in designing their processes in compliance with legal requirements and maintaining their innovative strength despite increasing documentation obligations
SMARTCHAIN also meets the requirements of large supply chain partners, as this is the only way to ensure that the platform is accepted by as many players as possible. In addition to lawyers and auditors, partners from associations, research, and consulting will also benefit from the project's findings.
Project Sponsor & Funding
SMARTCHAIN is funded by the Federal Ministry of Research, Technology and Space as part of the technology program “Generative AI in practical application” - and supervised by the DLR as project management organization.
With a duration from February 2025 to January 2028 and a total budget of 5.8 million euros, SMARTCHAIN makes a concrete contribution to the digital transformation of medium-sized industrial companies - in the service of sustainability, legal certainty and competitiveness.
About Us
SMARTCHAIN is backed by an interdisciplinary consortium of five partners from industry, research and consulting that combines industrial know-how, regulatory expertise and AI development: thyssenkrupp Materials Services GmbH, Academy for Exponential Change GmbH, Jonda Metallwarenfabrik GmbH, Ingolstadt University of Applied Sciences and Tweer & Lösenbeck GmbH & Co. KG. Together, we develop practical solutions that not only relieve the burden on SMEs, but also empower them.
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