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Managing Product Compliance Challenges Efficiently in Discrete Industries for Sustainability

By Amarnath Singanamala

Managing Product Compliance can be a challenge in any industry, especially in Discrete manufacturing. The inability to comply with regulations can have devastating effects on the manufacturer’s reputation and balance sheet.

Even today, a lot of Discrete Manufacturers are still catching up with regulatory needs. They are heavily dependent on manual processes and use excel sheets to fulfil the regulatory requirements. While this approach temporarily addresses their needs, it introduces data quality issues and delays product releases. These companies need a way to protect their product marketability while making the compliance effective and less expensive by embedding Product Compliance into the Product Development Phase.

Reasons that these companies are hesitant to invest in any Product Compliance application is that it does not add value in terms of revenue, as well as not having a clear direction / vision for the compliance program.

Challenges

Without having the right application in place, the following are the most common challenges that Discrete Manufacturers face today:

Solution

SAP’s Product Compliance for Discrete Industries in SAP S/4HANA (or EHSM Product Compliance in ECC) can address the above mentioned challenges, as a single source of truth for the compliance data in the form of Compliance Product Structure and by identifying and managing rapidly changing regulatory requirements (such as REACH, RoHS).

SAP’s Product Compliance solution natively integrates support for compliance processes with process support from SAP. With ECC or S/4HANA, you can link compliance activities with master data (such as Material, Purchasing Data, BOM, Supplier) and your core design-to-delivery processes. Using this, companies can realize significant productivity gains by automatic synchronization and native integration. This saves large costs and efforts compared to manual processes or any other 3rd party solutions.

SAP Product Compliance can perform regulatory list assignments, compliance checks, support the design of compliant products, and generate reports. All these operations can be automated, resulting in faster design to delivery cycle.

Integration

SAP Product Compliance can integrate with SCIP database. All of the companies who sell or import articles in the European Union (EU) that contain substance of very high concern are required to report to the SCIP database. SAP Product Compliance can also integrate with IMDS for automotive industries. Below is a high-level architecture of the Product Compliance process and IMDS Integration. There are other 3rd party applications that fulfil the integration needs, according to the industry standards as well.

Features & Benefits

Here are a few important features of SAP's Product Compliance for Discrete Industries and their corresponding benefits.

Overall, Product compliance addresses most of the challenges that Discrete Industries are facing and is a great help to customers in fulfilling their Compliance needs.

Contact us to learn more about how GyanSys’ team of experts can help your organization optimize and adapt business process efficiencies for Product Compliance and Sustainability.