• Product Compliance

5 Product Compliance Best Practices of Leading Companies

April 13, 2017 By
Best-in-Class organizations realize that product compliance is not just a regulatory compliance requirement or simply about managing chemicals. It is also about being more competitive by successfully launching new product innovations on the market, all while maintaining compliance and reducing operational and reputational risks. Leading companies know that product compliance helps to turn compliance into profit, and implement the following five best practices to achieve product compliance success.

1) Standardize Processes for Materials Compliance

Best-in-Class organizations standardize processes for materials compliance by using solutions that fully integrate with their ERP or PLM systems. This helps to ensure that materials are compliant at all stages of the product lifecycle, from product design, to sourcing, and all the way to product launch. Having standard processes throughout the entire enterprise lessens the risks of design re-works or product recalls. Both compliance and continuous innovation can be achieved simultaneously, without having to choose one over the other.

2) Manage Product and Materials Data in a Central System

According to an Aberdeen report, 77% of Best-in-Class organizations store product and materials data in a central repository. That number is 50% for all other organizations. Effective product compliance means having all product and materials data in a central system where all company functions have access to a single, current version of the truth regarding the compliance status of materials. This leads to better decisions on the types of materials to include at the product design stage and those to source from suppliers.

3) Monitor Product Composition Against Regulatory Requirements

Standardizing processes and managing product and materials data in a central system allow leading organizations to assess product compositions against regulatory requirements, and validate compliance early when it is less costly to make changes to the product. Some leading companies even go a step further and meet with regulatory agencies in the early stages of design to ask feedback, which can help to avoid design re-work.

4) Assess and Track Supplier Compliance

A non-compliant material can lead to a non-compliant product, and therefore can force a company to switch suppliers. Best-in-Class organizations monitor the compliance status of suppliers, in order to react quickly and lessen the risks of supply chain disruptions and production delays if a non-compliant material is identified. They make sure that compliance assessments are rolled up from individual materials to the entire product, and that procurement teams do not operate in silos.

5) Maintain an Audit Trail of Compliance Data for Each Product

The design of a product can change following new innovations or the introduction of variations of the same product (e.g. different flavors of a food product, a newer model of an existing product, etc.). In addition, components can also change due to changes in the supply chain. But compliance obligations don’t disappear, which is why an audit trail of product compliance data is needed. Even if a product is no longer sold, it can still attract scrutiny and attention from regulatory bodies for a number of reasons, including customer complaints or disposal considerations.

Download the report “Product Regulatory Compliance: Turning Compliance into Profit” to learn more. The report shows how to maximize productivity and profitability while maintaining compliance and reducing risk. You can also download these individual research documents tailored to specific industries:

Product Regulatory Compliance: Turning Compliance into Profit

Categories: EHS

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