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.
Key Concept

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.”

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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