Rising regulatory requirements, complex supply chains, and manual processes challenge many companies. How can compliance be managed efficiently without overloading procurement? The German Supply Chain Act (LkSG) and the Carbon Border Adjustment Mechanism (CBAM) in particular require structured processes and a reliable data foundation – yet many companies struggle with incomplete information and time-consuming isolated solutions.

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With a digital platform, automated queries, and integrated risk analysis, these requirements can be managed efficiently. But how does implementation succeed in practice? Harro Höfliger shows how a modern SRM system seamlessly connects procurement and compliance, creating transparency, efficiency, and legal certainty.

Rising regulatory requirements in procurement pose major challenges for companies. Especially in the industrial mid-market, where supply chains are often complex and involve a large number of suppliers, manual implementation quickly reaches its limits. Regulations such as the German Supply Chain Act (LkSG) and the Carbon Border Adjustment Mechanism (CBAM) require a structured approach to ensure transparency, legal certainty, and efficiency. Harro Höfliger recognized this early on and introduced Tacto's SRM software as a central platform that intelligently connects procurement and compliance.

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In the webinar, Sarah Martins Pinheiro (Process Manager SCM at Harro Höfliger) and Kendra Benkendorf (compliance expert at Tacto) report how Harro Höfliger uses the software in day-to-day procurement.

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The Starting Point: Regulatory Pressure and Missing Master Data

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Harro Höfliger is an internationally active special machinery manufacturer for the pharmaceutical and medical industries. With more than 2,200 employees, over 2,500 active suppliers, and a high variety of parts, the demands on the procurement organization are considerable. When the German Supply Chain Act came into force, it quickly became clear that a purely manual implementation would not be possible.

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The following challenges had to be overcome:

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• Data quality: Much important supplier information was not recorded centrally or had to be gathered laboriously

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• Complex processes: Differing regulatory requirements threatened to create a confusing patchwork of isolated solutions

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• Supplier inquiries: Smaller international suppliers in particular often had no experience with the LkSG or CBAM and needed support

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• Manual reporting: The first CBAM report was created without a digital solution and quickly showed how time-consuming this process can be

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With the introduction of Tacto as the central supplier relationship management (SRM) system, the LkSG module was implemented first to systematically analyze supplier risks and manage evidence centrally. This structure laid the foundation for a comprehensive compliance strategy.

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For CBAM, Harro Höfliger was able to draw on the existing data foundation and automated queries. The seamless integration enabled efficient implementation without additional manual data collection or separate stand-alone solutions.

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CBAM Implementation: From High Manual Effort to Structured Automation

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Quarterly CBAM reporting presented Harro Höfliger with an unexpected challenge. At first, it was unclear whether the company was affected at all, and only a call from a freight forwarder made the urgency of the topic obvious.

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Problems of manual implementation:

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• Registration in the customs portal was complicated and error-prone

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• The calculation of CO₂ emissions was based on incomplete or hard-to-access supplier data

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• The Excel template provided by the EU was complex and difficult for many suppliers to understand

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• Reporting was time-consuming and required extensive coordination

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After connecting to Tacto, these challenges were quickly overcome. Suppliers received targeted training and standardized requests, which significantly improved the response rate. Automated data processing reduced the time required and ensured that reports could be submitted on time and with high data quality.

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Another advantage was the ability to forecast future CO₂ costs. With Tacto, Harro Höfliger was able to analyze which imported products would cause particularly high costs, allowing strategic adjustments in sourcing to be made early on.

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Procurement and Compliance: How to Make the Most of Synergies

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Integrating an SRM system proved beneficial not only for regulatory compliance – it also improved the efficiency of the entire procurement function. Many companies face the challenge of handling compliance and procurement topics separately, which leads to duplicated processes and increased administrative effort.

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By using one central system, Harro Höfliger realized the following synergies:

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• Central data management: All supplier, article, and compliance data is consolidated in one place and available at any time

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• Automated queries: Supplier requests for CBAM, the LkSG, or other regulatory requirements run in a standardized way with minimal effort

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• Legal certainty: Close collaboration with external advisors such as Taylor Wessing ensured that all processes comply with legal requirements

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• Step-by-step expansion: Beyond CBAM and the LkSG, the system can easily be extended with additional functions such as RFX, material compliance management, or supplier evaluation

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For companies facing new regulatory requirements, an early and systematic approach is crucial. A solid data foundation is the key to meeting compliance requirements efficiently and responding flexibly to changes. Harro Höfliger's experience shows that step-by-step implementation makes sense – starting with fundamental requirements such as the LkSG before integrating further modules such as CBAM. Close exchange with suppliers is equally essential to create transparency and identify potential hurdles early. Companies should also rely on digital solutions that can be extended flexibly so they do not have to start from scratch with every new regulation.

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Conclusion

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The introduction of Tacto as the central SRM solution has shown that intelligent digitalization not only optimizes compliance processes but also sustainably improves strategic procurement. Automated supplier communication, central master data management, and the ability to meet regulatory requirements without manual effort can significantly reduce workload and increase transparency.

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Outlook

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With the successful implementation of CBAM and the LkSG, Harro Höfliger has created a solid foundation for future requirements. New regulations such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence Directive (CSDDD) are already on the horizon. Companies that adopt digital solutions early have a decisive advantage: they can integrate regulatory changes proactively instead of making costly adjustments under time pressure.

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The digitalization of procurement is no longer a topic for the future – it is a decisive prerequisite for competitiveness. An integrated SRM system that connects procurement and compliance is therefore not just a technological investment but a strategic decision for long-term success.

In the live webinar “Efficient Compliance at the Touch of a Button: How Harro Höfliger Implements CBAM and Other Compliance Requirements in One System,” Sarah Martins Pinheiro (Process Manager SCM at Harro Höfliger) and Kendra Benkendorf (CBAM expert at Tacto) show how companies can efficiently manage regulatory requirements such as the German Supply Chain Act (LkSG) and CBAM. They explain why a central data foundation, automated supplier queries, and digital processes are decisive for implementing compliance efficiently, identifying risks early, and developing procurement strategically.