Legislation limiting harmful substances in electronics is spreading worldwide, and manufacturers, suppliers, and distributors of electrical and electronic equipment are feeling the effects.
We now have Restriction of Hazardous Substances (RoHS) laws in the European Union, Japan, China, Korea, and California. We have Proposition 65 legislation in California. We have formaldehyde limits on wood products. We also have bisphenol A (BPA), di(2-ethylhexyl) phthalate (DEHP), and latex restrictions on medical products.
While assuring compliance with hazardous substance rules and limits is getting harder for the electronics industry, the real game changer has been the EU Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) law.
REACH restricts substances of very high concern (SVHC) in electronics. It doesn't just apply to a finished product; it also applies to the various components in the product. A manufacturer can't be sure if its product complies until it obtains hazardous substance information from its component suppliers. Also, the number of REACH-regulated SVHCs is increasing every six months. There are currently 53 SVHCs, and that number is expected to surpass 120 by the end of 2012.
It is no longer enough to have a component supplier provide a simple hazardous substance compliance statement. A supplier has to submit a new statement every time a new SVHC is added. To avoid having to make repeated requests, and the time delays in getting responses, manufacturers have begun asking suppliers to provide a list of all the ingredients and concentrations in their products (full material declarations). That way when a new SVHC is added, a manufacturer can instantly determine compliance.
The volume of compliance data that needs to be assembled is enormous. It has led manufacturers, suppliers, and distributors to seek software solutions; several organizations have developed tools that track global product rules, request full material declarations from suppliers, and manage supplier and manufacturer data.
A number of industry groups (IPC, GADSL, and JEDEC) have developed standard templates to facilitate data collection and information sharing. Some companies have joined product data sharing consortiums like BOMCheck, IMDS, and Granta/EMIT to make data gathering easier. Some have hired full-service software providers to interface with suppliers and manage supplier product data on their behalf. Popular full-service providers include Foresite/GEMS and SAP AG (NYSE/Frankfurt: SAP).
Hazardous substance legislation is here to stay. The amount of legislation is growing worldwide. A new set of electronic tools have been developed to assist companies in assuring compliance. If you haven't reviewed these new tools yet, it is probably time you did. Tell us what you think.
It is a very efficient way of controlling the hazardous element levels and maintain the system qualtiy within merit of standards. I will say we need more laws over the world in implementing RoHS.
I agree. Hazardous substance (product content) regulations are having a good effect. They are forcing electronics companies to identify the hazardous substances in their products and to properly reuse/recycle scrap products containing these substances. Suppliers must be knowledgeable when selling products globally. Hazardous substance regulations are providing incentives to companies to better manage hazardous substances.
Environmental concern is a little much aware among customers. SVHC can be reduced not only by passing strict laws but by also putting a recycling practice by the organisations.
Jacky - Thanks for sharing this information. MRPRO is a social media tool I was not familiar with. It does appear to be a unique way to request and collect product data via social media. Lots of tools now available. All spurred on by growing global product rules.
The MRPRO solution used for conflict minerals reporting and also for RoHS and REACH compliance allows for information exchange effieciently using social media...
You really should check into this laest social media based tool..
Good question. The EU REACH law applies to both EU manufacturers and EU importers. Both face EU punishment if they don't register SVHC containing products, or comply with notification or SVHC ban provisions. The EU recently amended the REACH law to make enforcement easier. Manufacturers will soon have to put a CE mark on REACH compliant products. It will make it easier to prosecute EU REACH violators as they will also be violating EU CE mark provisions. Multinational companies are also proving quite effective in forcing EU REACH compliance. More and more multinational companies are insisting their non-EU suppliers provide REACH compliant products.
That way when a new SVHC is added, a manufacturer can instantly determine compliance.
@Kenn thanks for the post. Its really inspiring to know that REACH law will help us to reduce SVHC. But what if a manufacturer fails to impement it ? What punishment that manufacturer will receive?
Prabhaker, thanks for your comments. You make a good point! These new electronic tools are able to integrate bill of material (BOM) information, track product by product compliance (if desired), and attach manufacturer/supplier certifications. Especially helpful with the advent of conflict mineral due diligence rules. Your point about inserting compliance clauses into purchase orders is also a good one. No reason that can't be done. Some companies are having their suppliers sign compliance agreements. They use their electronic tools to request and maintain the signed agreements.
Jacob, thanks for your comments! The thing I am impressed by with the electronic tools is they maintain up-to-date regulated substance lists for different countries. Once they know the ingredients in your products they can compare what is in your products to the various lists and identify product compliance issues for you in each country. If a country adds a new regulated substance, you know instantly which of your products is impacted.
It looks like the Global ERP companies like SAP, Oracle and likes should make these tools part of their ERP offering and have a semless integration if the compliance check with the supply chain related modules such as the Purchase orders, incomng inspection reports or vendor self certification.
The ERP systems should be able to insert the applicable Compliance clauses into the purchase orders based on the component being ordered and the country of origin and the inspection systems should automatically check whether the required complaince reports have been submitted by the supplier along with the material delivery challans.
Such implementation will remove oversight and human error and avoid litigations and punitive actions because of human oversight.
This new version will expand coverage to all electrical and electronic equipment, require special marking of finished goods and more compliance documentation, and increase penalties for non-compliance.
The US Senate Armed Services Committee uncovered approximately 1,800 cases of suspected counterfeiting over a two-year period. One Air Force supplier alone supplied 84,000 counterfeit devices.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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