In this lesson, you’ll discover the market challenges for companies in the product compliance area.
What is Product Compliance?
| Capability | Description | Value Proposition |
|---|---|---|
| Product Marketability and Chemical Compliance | Ensure compliant products and the right to market/sell for any product, especially those that contain chemicals, for example, industrial chemicals, consumer products, food-related products, cosmetics, and electronics. | Protect your brand, secure revenue, and reduce time to market with compliant products. |
| Dangerous Goods Management | Ensure compliant transport for any hazardous product or product with hazardous ingredients, such as industrial chemicals, combustible liquids, paints, batteries, glue, cleaners, and printer cartridges. | Improve on-time delivery of your goods with compliant transport for any hazardous product or products with hazardous ingredients. |
| Safety Data Sheet and Label Management | Ensure compliant hazard communication for any hazardous product or product with hazardous ingredients, such as industrial chemicals, combustible liquids, paints, glue, and cleaners. | Protect workers, people, and the environment with compliant hazard communication for any hazardous product or product with hazardous ingredients. |
Market Challenges
Today's market presents several challenges in the area of product compliance. Here are some of the key challenges:
Compliance Requirements
The number and complexity of global, regional, and national regulations or policies that companies must adhere to fulfill legal obligations, customer demands, and industry/company standards are continuously growing. It is important to consider these compliance requirements already in the product development process.
Software that embeds compliance in product development can help you manage the different requirements and ensure that only compliant products are developed. By leveraging regulatory content, you can stay up to date with all applicable regulations.
Complex Supply Chains - Increased Supply Chains
Another market challenge is the increased compliance risks. Ensuring compliance throughout the supply chain, including suppliers, manufacturers, distributors, and retailers.
Monitoring and managing compliance in each tier of the supply chain properly creates trust and transparency while reducing risk and compliance costs.
The software can help streamline communication along the supply chain and manage supplier information, reducing the effort for product stewards.
Stakeholder Demands - Information Disclosure Needs
Meeting the expectations of customers, investors, supply chain roles (suppliers, manufacturers, and so on), and internal company stakeholders involves transparency, accountability, and ethical behavior. SAP analytics software makes this information, along with other data, accessible across the company.
This, along with the automation of compliance document creation and distribution, helps fulfill stakeholder expectations. Product compliance must be ensured throughout the product lifecycle, not limited to development.
Individualized Products - Distinct Compliance Determination
The trend toward individualized products is increasing the number of different products. Therefore, it is essential to automate processes such as compliance assessments. SAP software can automatically classify products, determine compliance, and warn in case of violations.
Resource Constraints - More Tasks with Fewer Resources
Allocating sufficient resources (time, money, personnel) for compliance activities is important for balancing compliance costs with business priorities and budget constraints.
Balancing compliance costs with business priorities and budget constraints.
Software that embeds compliance and controls in the corresponding business processes, automates regulatory assessment, and helps ensure compliance and reduce effort.
Summary
In this lesson, you’ve discovered the following market challenges for companies in product compliance:
- Growing compliance complexity: Compliance requirements are increasingly complex, needing consideration during product development and regular updates to maintain compliance.
- Supply chain compliance risks: It is crucial to ensure compliance across all supply chain tiers, including suppliers, manufacturers, and distributors.
- Stakeholder transparency demands: Meeting stakeholders' transparency and ethical expectations requires effective compliance information management and automation.
- Automated compliance for individualized products: Automate compliance processes to manage the diverse challenges posed by individualized products.
- Resource allocation challenges: Efficiently allocate resources for compliance activities, balancing compliance costs with business priorities.