28 Jun 2022

Material compliance documents are an obligation for whole supply chain irrespective of their role as either producers/distributors/importers/exporter. Compliance documents are the only and main source of hazard communication declaring the material composition and the threshold of their presence. These declarations in turn help measure the impact of materials on environment and health through various regulations and directives.

Regardless of industry, all manufacturers/importers are required to obtain compliance documents as required by applicable regulations / directives regarding parts, components, and chemicals of finished goods.

The suppliers of these parts or components have to certify that these components are devoid of certain harmful substances which are restricted or banned. Around the globe, there are many regulations/directives that set threshold levels for the use of these hazardous substances in components.

Some of the regulations / directives are RoHS, REACH, Prop 65, SDS, IMDS, TSCA and Conflict Minerals which are exclusive to particular countries. Besides this, there are other global regulations.

Challenges with Compliance Documentation.
  • Managing multiple documentation requirements is cumbersome, and it poses a huge challenge to all stakeholders, such as suppliers, manufacturers and sellers.
  • It’s generally not a feasible option to have dedicated teams spread across the globe to handle the compliance document details and maintain a repository of the same.
  • Needless to say, Compliance regulations are ever changing and monitoring change can be quite tough
  • Multiple suppliers mean multiple compliance documents. Ensuring that they are all valid, duly updated is a big concern for manufacturers.

Benefits of outsourcing compliance Documentation

The basic need of outsourcing compliance documentation boils down to addressing the challenges above. Having a structured compliance program is essential to any process. It’s wise to outsource the entire management and maintenance of compliance documentation to a centralized system which has the ability to handle all challenges, thereby saving money and time which is extremely crucial to the company.

It also reduces the burden and improves the focus of the company on relevant and critical areas that need attention.

  • High Availability of compliance specialists: Lack of locally available resources is one of the primary reasons for outsourcing. The utilization of structured processes, combined with access to subject matter experts, produces a significant increase in efficiency and quality, and facilitates seamless execution of end-to-end processes, from compliance assessment to corrective action.
  • Keep track of dynamic needs of compliance regulations: The task of tracking rapid, continuous, global regulatory changes is not only difficult but also expensive. Therefore, organizations often experience higher operating costs and lower quality compliance solutions.
  • Deploying compliance technology platform: By letting experts handle compliance processes, you can take advantage of already existing technology platforms with your outsourcing partner, instead of reinventing them. Flexibility to scale deployment of technology, implementation engineers and reporting resources as needed, supported by tools that provide predictive trends
    and insights.
  • Effective cost reduction: By reducing the burden on internal infrastructure and resources, organizations can focus on their day-to-day business and let compliance specialists solve issues for them. A third-party company can be used to deliver operational processes at high levels of quality, while providing cost-effective services and releasing internal resources for revenue- generating activities.

The business case for outsourcing compliance versus running an in-house compliance operation may need to be developed and considered by each organization, which may require investing ever more talent and resources. We can help you understand how to benefit most from outsourcing compliance documentation. Talk to one of our Compliance experts today.