Use SAP Solutions for GRC as the Cornerstone for a Product Compliance Framework
- by William Newman, Managing Principal, Newport Consulting Group
- July 15, 2008
See how to leverage the governance structures inside SAP solutions for GRC for product compliance.
Similar to Segregation of Duties (SoD) in financial compliance, you can use process controls to define Delegation of Responsibilities (DoR) in SAP solutions for GRC for product compliance. DoR is based on the concept of a responsibilities matrix used for governance of all product compliance initiatives.
Compliance management in process approval and regulatory issues for product manufacturers is increasing every year. Companies in the high tech and consumer products industries have led the way with consumer-friendly “take-back” policies such as printer toner cartridge reclamations and cellular phone and computer peripheral disposals. These actions are examples of new business processes and practices that fundamentally reduce the amount of substances (such as lead) from solid state and integrated circuitry that find their way to incinerators and landfills. Similar to compliance for financial and process controls, SAP solutions for GRC can provide the cornerstone for a product compliance framework.
Many product compliance regulations, particularly those dealing with quality management or material content initiatives, require intensive data gathering and information reporting across the entire value chain, whether to an original equipment manufacturer (OEM) or to a governmental or non-governmental organization (NGO). The European Union has for some years led reduction on hazardous substance (RoHS) reporting requirements by enacting regulatory measures addressing the consumer electronics and telecommunications (waste electrical electronic equipment – WEEE), automotive (end of life vehicle – ELV), discrete industries (RoHS), and process chemical (registration, evacuation, and authorization of chemicals – REACh) industries. Similar regulatory and statutory requirements are increasing on a global basis as are requirements for other “green initiatives” coming from customers to their suppliers as well as industry-focused requirements such as “halogen free.”
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