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.
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.
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.
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.
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.
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.
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.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
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.