Post on 15-Apr-2017
Enablon 2016 - ConfidentialEnablon 2016 - Confidential
SPF AMERICAS 2016October 5th, 2016
Enablon 2016 - Confidential
PRODUCT COMPLIANCE
ISSUES & TRENDS
Enablon 2016 - Confidential
9:30 AM – 10:10 AM ISSUES & TRENDSTracy Woo, Aberdeen GroupAlan Johnson, 3E Company
TODAY’S AGENDA
10:20 AM – 11:00 AM SOLUTION LIVE DEMOLeah Cartwright, Enablon
11:30 AM – 12:10 PM CUSTOMER CASE STUDYSpeaker Name
12:20 PM – 1:00 PM PRODUCT ROADMAP DISCUSSIONCaitlin Bergman, Enablon
2:00 PM – 4:30 PM TRAININGONE-ON-ONE MEETINGS
Enablon 2016 - Confidential
INTRODUCTION
Tracy WooProduct Innovation and Engineering (PIE)
& Manufacturing research
Alan L. JohnsonDirector of Strategic Partnerships
& Alliances
Enablon 2016 - Confidential
AGENDA
Current Product Compliance Challenges
Proactive Product Compliance
Implement Proactive Compliance
Enablon 2016 - Confidential
NAVIGATING PRODUCT COMPLIANCE
Enablon 2016 - Confidential
THE COMPLIANCE CHALLENGE
2 New Product Standards & Regulations
1Current Chemical
Regulations(REACH, GHS, etc.)
4 Supply Chain Visibility
3NGOs, Black Lists, & Social Media
Enablon 2016 - Confidential
INCREASED FOCUS ON COMPLIANCE
Concerns about high cost of avoidance (legislation, standards, liti-gation, insurance, etc.)
Reduce the risk of product recalls (non-compliance, customer returns, etc.)
Enable product sales in global markets
Need to respond to customer demand (e.g., customers demand products that are more eco-friendly, etc.)
Ensure compliance to current and future regulations (environmental, financial, etc.)
0% 10% 20% 30% 40% 50%
23%
33%
35%
43%
48%
All RespondentsPercentage of Respondents, n = 262
Source: Aberdeen Group
Enablon 2016 - Confidential
THE REGULATORY COMPLEXITY
• Companies struggle under the burden of spiraling global regulationsEver more demanding regulators and clients
Restricted/Banned Substances
• Consumer Products• REACH• ROHS• Phthalates/BPA
New Chemical Notification
• Taiwan Inventory• TSCA Reform
Classification and Labeling
• GHS • CLP• Cal Prop 65
Environmental Regulations
• Air• Water• Waste
Enablon 2016 - Confidential
NEW TYPES OF REGULATIONS
• Supply Chain TransparencyConflict Minerals (US)
• In 2010, President Obama signed the Dodd-Frank Consumer Protection Act into law. Section 1502 of that act addresses the international trade and use of Conflict Minerals
Modern Slavery Act (UK)• Requires businesses operating in the UK with a turnover of over £36
million to prepare and publish a “slavery and human trafficking statement” for each financial year
Enablon 2016 - ConfidentialEnablon 2016 - Confidential
RISING GLOBAL REGULATION PRESSURES
Growing risks associated with non-compliance
Growing complexity of security regulations for international trade
Incomplete visibility or disparate systems.
Growing global operations causing rising process customization due to regional compliance
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
29%
32%
33%
47%
All RespondentsPercentage of Respondents, n = 151Source: Aberdeen Group
Enablon 2016 - Confidential
PROACTIVE COMPLIANCE
Enablon 2016 - Confidential
PROACTIVE COMPLIANCE
Monitor 1 Global Compliance Competitive Threats
Assess Risk 2 Chemical Risk Assessment Regulatory Trends Supply Chain
Strategize & Plan 3 Optimize Cost Supply Chain Brand Impact
Unify Internal Processes 4 Product Development Quality Compliance
Enablon 2016 - Confidential
BIGGEST PERCENTAGE OF COMPLIANCE COST
Hazardous waste
Process Safety
Energy
Product Safety
Employee Safety
Product Compliance
0% 10% 20% 30% 40% 50% 60%
23%
28%
33%
35%
43%
53%
All Respondents Percentage of Respondents, n = 262Source: Aberdeen Group
Enablon 2016 - Confidential
MONITOR
Monitor 1 Global Compliance Competitive Threats
Assess Risk 2 Chemical Risk Assessment Regulatory Trends Supply Chain
Strategize & Plan 3 Optimize Cost Supply Chain Brand Impact
Unify Internal Processes 4 Product Development Quality Compliance
Enablon 2016 - Confidential
HOW TO STAY AHEAD
• Compliance StrategyStay ahead:
• Monitor for global industry trends and regulatory changes
http://www.safecosmetics.org/get-the-facts/
Enablon 2016 - Confidential
ANALYZE IMPACT PROACTIVELY
ANALYZEIMPACT
Enablon 2016 - Confidential
PROACTIVE COMPLIANCE STRATEGIES
Integrated regulatory content to automatically drive product as-sessments and documentation
Assessing / tracking of compliant suppliers
Established process to generate a roll up assessment of material composition of the entire product (bill of substances)
Procurement team establishes best practices for sourcing from compliant suppliers
Automated requests to supplier for material disclosure
0% 10% 20% 30% 40% 50% 60% 70%
51%
54%
60%
60%
65%
All RespondentsPercentage of Respondents, n = 262
Source: Aberdeen Group
Enablon 2016 - Confidential
ASSESS RISK
Monitor 1 Global Compliance Competitive Threats
Assess Risk 2 Chemical Risk Assessment Regulatory Trends Supply Chain
Strategize & Plan 3 Optimize Cost Supply Chain Brand Impact
Unify Internal Processes 4 Product Development Quality Compliance
Enablon 2016 - Confidential
Similar Functionality
Substitute
CHEMICAL RISK ASSESSMENT•Toxicity•Eco-toxicityToxicology
•Regulatory listsRegulatory Content
•Classifications•Physical chemical
Chemical Attributes
•Organizational proprietary test dataProprietary Data
HAZA
RD
RISK ASSESSMENT
• Organizational exposure scenariosOrg. Data
• Exposure scenariosExposure DatabasesEXPO
SURE
SCORING & WEIGHTING ALGORITHMS
Enablon 2016 - Confidential
SUPPLY CHAIN ASSESSMENT
Enablon 2016 - Confidential
TREND ASSESSMENT
• Regulatory, Industry and Consumer
Enablon 2016 - Confidential
STRATEGIZE & PLAN
Monitor 1 Global Compliance Competitive Threats
Assess Risk 2 Chemical Risk Assessment Regulatory Trends Supply Chain
Strategize & Plan 3 Optimize Cost Supply Chain Brand impact
Unify Internal Processes 4 Product Development Quality Compliance
Enablon 2016 - Confidential
EMBEDDED PRODUCT COMPLIANCE
• Proactive Compliance throughout the product life cycle
Optimize Cost
• Early substitution• Recall reduction• Less re-development
R&D
Production Planning
Production
Purchasing
Quality ControlPackaging
Sales
Use
Recycling/Disposal
Enablon 2016 - Confidential
BUILDING SUPPLIER NETWORKS
• Forming collaborative relationships with your suppliers IncentivesRecognitionGamification
All 242 of Apple’s suppliers of tin,
tantalum, tungsten, or gold are now subject
to third-party audits to determine any links to armed groups in the
DRC.
Enablon 2016 - Confidential
MANAGE BRAND IMPACT
• Del Monte• Nestle• Ocean Spray
VS
Enablon 2016 - Confidential
ABERDEEN MATURITY CLASS FRAMEWORKSelected
Performance Criteria (KPI)*
Recordable Injury
Overall Equipment Effectiveness
Performance Against Corporate Plan AllRespondents
- Top 20%
Respondents are scored individually across KPI
Best-In-Class
% On-Time Audits
*percentage of products meeting these targets over the past two years
- Middle 50%
- Bottom 30%
Industry Average
Laggard
Enablon 2016 - Confidential
OPTIMIZE COMPLIANCE COST
On-time Audits Overall Equipment Effectiveness (OEE)0%
20%
40%
60%80%
100%120%
Best-in-Class Industry Average Laggards
Perc
enta
ge o
f Res
pond
ents
, n =
262
Sour
ce: A
berd
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Operating Margin v. Corporate
Plan
Product recalled in the past 12 months
-10%-5%0%5%
10%15%20%25%
Highest Percentage of Total Cost of Compliance
Best-in-Class Industry Average Laggard
4% 13% 24%
Enablon 2016 - Confidential
UNIFY INTERNAL PROCESSES
Monitor 1 Global Compliance Competitive Threats
Assess Risk 2 Chemical Risk Assessment Regulatory Trends Supply Chain
Strategize & Plan 3 Optimize Cost Supply Chain Brand Impact
Unify Internal Processes 4 Product Development Quality Compliance
Enablon 2016 - Confidential
PROCESS SILOS
• Product Development, Quality, and Compliance ‘Siloed’ processesExecuted separatelyEach one resource intensive
Enablon 2016 - Confidential
INTEGRAL COMPLIANCE
• Building substance compliance into your product development processCompliance as a
complementary process to innovation
Compliance Check
Production
Sales & Distribution
Consumption
Disposal
R&D
Enablon 2016 - Confidential
SUCCESSFUL COMPLIANCE ACTIONS
Create / Improve collaboration across internal and external functional groups
Proactively monitor product designs for compliance
Consolidate product data from suppliers, partners, third parties, etc.
Create / Improve visibility into product data across the enterprise
Build compliance into the product design / new product development processes
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
23%
25%
35%
38%
43%
All RespondentsPercentage of All Respondents, n = 262
Source: Aberdeen Group
Enablon 2016 - Confidential
IMPLEMENTING PROACTIVE COMPLIANCE
Enablon 2016 - Confidential
IMPLEMENTING PROACTIVE COMPLIANCE
• Proactive Product Compliance Framework:Monitor new and changing regulatory requirements and industry
trendsAssess Risk related to the use of certain chemicals, regulatory
and market trends, and your supply chain Strategize and Plan to mitigate cost, create a more transparent
supply-chain and increase your brand equityUnify Processes and efficiently identify product and ingredient
compliance issues early in the product development cycle
Enablon 2016 - Confidential
BEST-IN-CLASS CAPABILITIES
0%10%20%30%40%50%60%70%80%90% Best-in-Class Industry Average Laggards
Perc
enta
ge o
f Res
pond
ents
, n =
187
Sour
ce: A
berd
een
Grou
p
Enablon 2016 - Confidential
BEST-IN-CLASS CAPABILITIES
0%10%20%30%40%50%60%70%80%90% Best-in-Class Industry Average Laggards
Perc
enta
ge o
f Res
pond
ents
, n =
187
Sour
ce: A
berd
een
Grou
p
Enablon 2016 - ConfidentialEnablon 2016 - Confidential
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