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What’s NEW? in Product Compliance -

  • Integrated Content from 3E (Embedded)
    • 200+ Compliance requirements for marketability
    • 10+ Compliance requirement for Dangerous Goods
    • 100+ Compliance requirement for SDS Authoring
    • 30K+ Embedded listed substance
    • 17K+ Embedded regulatory phrases
    • 800+ Embedded regulatory graphics

 

  • Classical Vs NEW

 

Capability Area

Classic Approach

New Approach

Compliance Data Foundation

Uses a standard structure (property tree) with basic phrase mapping provided by partners.

Built on a modern, consistent data model with ready-to-use phrases and field links — all included as standard.

Product Marketability & Chemical Compliance

Partner-provided content includes regulatory lists and rules covering over 330,000 substances, along with 150+ compliance checks. Focuses mainly on industrial chemicals.

Includes similar substance data and compliance rules out of the box. Future add-ons (planned by 3E) will extend support to other industries.

Dangerous Goods Management

Partner content helps classify substances based on UN standards and regulatory rules. Includes 15 built-in compliance rules with visuals and logic.

More intelligent: a machine learning-based service is in the works (by 3E) to help automate classification tasks.

Safety Data Sheet (SDS) & Label Management

Relies on partner templates and rules for SDS and labelling. Offers 400+ compliance checks focused on industrial use cases.

Adds smarter features: an “Intelligent SDS package” is being planned, with automated rule logic and label templates to make the process smoother and faster.

 

What’s Happening to EHS Expert?

The traditional EHS Expert tool is being phased out as its logic is built directly into the new system — but don’t worry, its capabilities aren’t going away. They’re just being handled differently now:

Functionality

How It's Handled Now in S/4HANA

Data Checks

The system automatically checks data consistency through the data management apps. No need for a separate expert tool.

Secondary Data Calculation

This logic is now embedded in compliance requirements. For example:
- Marketability checks use built-in “substance list check” rules.
- SDS content can be filled automatically using 3E’s Intelligent SDS authoring.

Marketability & DG Transport Checks

These checks are now a part of either:
- The compliance logic itself, or
- The integrated business process (like sales or logistics).

Execution of Compliance Logic

Logic is handled in two ways:
1. Directly inside the S/4HANA system using ABAP code.
2. Via external services, where the logic runs remotely and sends the results back into your S/4 system.

Custom Compliance Rules

You can still create your own compliance checks, based on standard logic templates already built into the system.

🧠 Bottom Line:

Instead of using a separate tool like EHS Expert, everything is now integrated, smarter, and more flexible, right inside S/4HANA — or through connected services when needed

 

What’s Happening to Global Label Management (GLM)?

SAP is modernizing how labels are managed and printed. Instead of using the traditional GLM tool, here’s how things are handled now — split between SAP S/4HANA and partner solutions:

Functionality

What Changes in S/4HANA

Label Data Handling

All label-related data and logic are now managed directly inside S/4HANA.
- Labels are treated as compliance requirements.
- The system collects and uses label data as part of this compliance setup.

Label Logic & Triggers

The logic to determine when and which label to use is built into:
- The compliance rules, or
- The integrated logistics processes (e.g. shipping, output).

Integration is triggered using SAP’s Output Management.

Label Printing & Design

Printing is done through partner solutions (not by SAP directly):
- SAP is working with partners like Loftware and Eurosoft-Plus.
- An open interface is being developed so customers can use the label system of their choice.
- For simple labels, S/4HANA may offer enough built-in functionality — no external tool needed.

 

SAP WWI is no longer utilized for label printing and for more Detail refer SAP NOTE: 3015382

 Transition from ECC – Classical to NEW Product Compliance

00Idrees00_0-1747594942475.png

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🧩 Breaking Down the Core Components

  1. Product Marketability & Component Compliance

Best practices /Scope Items are referred from below link https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023?region=DE

 

Cloud Scope IDBusiness ConditionModule
31H N/AFoundation
31G31H - Assess Marketability of a ProductProduct Marketability and Chemical Compliance
31JBD 9: The scope item of this document is an extension of the BD9 scope item Therefore, the BD9 must be implemented and tested beforehand.Product Marketability and Chemical Compliance
50JBNZ - Create New Open MM Posting Period                                                        J45 - Procurement of Direct MaterialsProduct Marketability and Chemical Compliance
40LBNZ - Create New Open MM Posting Period                                                     J45 - Procurement of Direct Materials                                    BJ8 - Make-to-Stock - Process Manufacturing Based on Process OrderProduct Marketability and Chemical Compliance

 

When a company develops or sells a product, it’s essential to make sure that product complies with all relevant laws, industry regulations, and internal standards. That’s where Product Marketability and Chemical Compliance comes in—it helps organizations manage chemical compliance effectively across all products.

This tool plays a key role in making sure products are eligible for sale, shipment, and distribution by supporting regulatory compliance throughout the entire product lifecycle. It’s also integrated with sales and delivery processes to catch any issues early, helping prevent products from being shipped to regions where they may be restricted or not yet approved.

Ensures that products and raw materials meet regulatory and stakeholder requirements across all target markets.

Key features include:

  • Automated compliance checks for new products
  • Integrated marketability assessments
  • Substance volume tracking
  • Centralized monitoring of compliance status

With this in place, companies can avoid compliance-related shipment blocks or legal violations before they happen.

 New PC - Prod. Mark..png

Product Marketability – Substance volume tracking

Data Management & Configuration Tasks

Here’s what you can configure and manage directly in the system:

  • Define your legal entities and map them for compliance tracking
  • Set up and manage bonded warehouses (for tracking-exempt storage)
  • Mark certain plants or companies as excluded from tracking
  • Choose which document types or item categories should be skipped
  • Select movement types that are relevant for tracking compliance
  • Assign import responsibilities for supplier-provided materials

This flexibility ensures that only the right transactions and materials are monitored.

How Substance Volume Tracking Works??

SAP offers multiple tracking modes to help you stay compliant with regulated substance limits:

  • Initial Tracking: For first-time substance flow recording
  • Periodic Tracking: To regularly monitor volumes over time
  • Manual or Automated Re-tracking: When changes or corrections are needed
  • Flexible Monitoring: You can define your own tracking cycles and get alerts based on volume thresholds

Regulatory Coverage (Current Scope)

The system supports several major global regulations, including:

  • EU REACH, UK REACH, and Turkey’s KKDIK
  • US TSCA Inventory, SNUR, and Chemical Data Reporting (CDR)

 

  1. Compliance Document Management

 Managing SDS and label documents is critical for both legal compliance and customer safety.

SAP streamlines this process with:

  • Centralized SDS management per product and country
  • AI-assisted document processing
  • Automatic SDS distribution post-shipment
  • Integration into logistics and delivery flows

Best practices /Scope Items are referred from below link https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023?region=DE

 

Cloud Scope IDBusiness ConditionModule
31H N/AFoundation
3VR1LQSafety Data Sheet and Label Management
3VQBD9 The scope item of this document is an extension of the BD9 scope item. Therefore, BD9 must be implemented and tested first.Safety Data Sheet and Label Management
6AVN/ASafety Data Sheet and Label Management
6MT1LQSafety Data Sheet and Label Management
7DO1LQSafety Data Sheet and Label Management

This reduces manual effort, improves accuracy, and ensures that customers get the right documents at the right time.

 New PC - SDS Authoring.png

Managing Safety Data Sheets (SDS) in SAP S/4HANA

Managing Safety Data Sheets is essential for compliance and safe product handling. SAP S/4HANA makes it easy by embedding SDS processes directly into your operations.

Data Management

  • Reuse existing data from your product marketability setup
  • Apply the correct SDS rules per country to ensure you meet all local regulations

🛠 Definition & Validation

You can define and manage SDS content smoothly with built-in tools:

  • Set up which SDS documents are required for different products and countries
  • Upload and officially release SDS documents into the system
  • Use predefined reports and analytics to track your SDS status
  • All this data serves as the foundation for integration with logistics processes

🔗Process Integration

SAP integrates SDS compliance checks throughout your business flows:

  • Automatically checks for SDS availability in key documents like:
    • Sales orders
    • Sales contracts
    • Outbound deliveries
    • Stock transport orders
  • If an SDS is missing, the system can:
    • Alert the logistics team
    • Trigger a request for the SDS from the responsible steward
  • Once ready, SDS documents can be:
    • Automatically sent to the customer when goods are shipped
    • Re-shipped later as needed, based on regulatory rules (e.g., US & EU)
    • Manually shipped when required
  • The system also supports side-by-side use with classic Product Compliance tools — so you can transition smoothly without disruption.

 

  1. Dangerous Goods Management

Any time a company produces, sells, or ships a product, it’s responsible for making sure that product complies with all applicable laws, industry rules, and internal guidelines.

Dangerous Goods Management helps companies handle this responsibility when it comes to hazardous materials. It allows you to assess both packaged and unpackaged goods, classify them based on relevant regulations, and determine whether they can be transported freely, under certain conditions, or not at all.

The system also supplies classification data for checks within key business documents, such as stock transfer orders, sales orders, and delivery notes. If a product involves dangerous goods, these checks automatically determine if transportation is permitted. For example, if a certain type of transport is banned in a particular region, the system will block the shipment. If transportation is only allowed under specific conditions, it will issue a warning. And if the product hasn’t yet been evaluated for dangerous goods compliance, the related documents will be put on hold.

Best practices /Scope Items are referred from below link https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023?region=DE

 

Cloud Scope IDBusiness ConditionModule
31H N/AFoundation
3FC31HDangerous Goods Management
3G83FC and BD9Dangerous Goods Management

 Transporting hazardous materials requires strict regulatory control. SAP ensures safe, legal handling through:

  • Classification of packaged and unpackaged dangerous goods
  • Integration with global regulations like IMDG, IATA, and ADR
  • Dangerous goods checks in sales, freight, and delivery
  • Automatic generation of compliant documents and labels

This guarantees safe logistics and prevents costly delays in shipping.

 New PC - DG.png

 

🤖Powering Compliance with Digital Intelligence

SAP S/4HANA for Product Compliance uses embedded intelligence to:

  • Automate risk assessments and document generation
  • Stay updated with every regulatory change
  • Track compliance across the product lifecycle
  • Visualize impact using dashboards and analytics

With pre-built regulatory logic and substance databases (updated via the 3E content service), businesses gain trusted, current insights.

🌱Compliance Meets Sustainability

SAP also connects compliance with your ESG and sustainability goals through:

  • Carbon footprint tracking and accounting
  • Circular economy models and traceability
  • Extended producer responsibility (EPR) tools
  • Integrated emissions, safety, and waste metrics

This helps companies deliver on environmental commitments while reducing risks and waste.

🔄Seamless Integration Across the Supply Chain

SAP S/4HANA embeds compliance throughout the enterprise, enabling real-time checks and document generation across:

  • Product design – marketability and SDS planning
  • Procurement – supplier validations
  • Warehouse – compliance on goods receipt
  • Manufacturing – ingredient tracking and labelling
  • Sales & Delivery – SDS, dangerous goods, and blocking rules
  • Transportation – legal documents for logistics

This ensures auditability, traceability, and business continuity.

🚀Why It Matters

In today's global economy, compliance is not optional — it's foundational. Failing to meet even one requirement can:

  • Block product shipments
  • Trigger legal fines
  • Damage your brand reputation

With SAP S/4HANA for Product Compliance, companies can:

  • Protect revenue
  • Innovate faster
  • Stay legally compliant
  • Advance sustainability goals
  • Build trust with customers and regulators

 

DATA MANAGEMENT BETWEEN NEW AND CLASSIC PRODUCT COMPLAINCE

3E HYBRID ADAPTOR -

  1. Go All-In on the New Product Compliance Solution
    • This is the ideal scenario for us long-term. However, due to current limitations with the Private Cloud setup, it's not realistically possible in 2023 or lower.
  2. Use the New System Just for Dangerous Goods
    • We could start by managing Dangerous Goods in the new system, while continuing to handle basic classification in the old (classic) setup.
    • This seems feasible and manageable in the short term.
  3. Fully Move Dangerous Goods to the New System
    • Shifting everything DG-related — including classification — to the new solution is also a viable option, if we have the needed support for packaging and regulatory filters.
  4. Use New Product Compliance Only for Product Marketability
    • Another path could be to leverage the new system just for Product Marketability, while keeping other functions in the classic environment.
  5. Combine DG and Marketability in the New System
    • We’re considering a hybrid option where both Dangerous Goods and Product Marketability are fully handled in the new solution.
    • This would include classification and packaging — but only if regulation-based packaging logic can be supported.
  6. Move Analytical Composition Data to the New System
    • We're also looking at migrating analytical composition data from the classic system.
    • That said, it’s still unclear whether this data can be completely transferred. Some logistics-related tasks might still need to run in the old system.

 

IMPORTANT SCENARIO –

When moving from the classic SAP system to the new Product Compliance setup, here’s what we can transfer and how it typically works:

  • Composition Data: Yes, we can move the composition information from the classic system to the new one.
  • SDS Report Generated: Can be transferred to New PC via Hybrid Adapter
  • SDS Raw Reports: We’re also able to transfer the raw Safety Data Sheet (SDS) reports from classic to new.
  • SDS Sections: (e.g. Physical & Chemical Properties): Specific sections like Section 3 on physical and chemical properties can also be carried over.
  • Real-World Practice: In most real scenarios, data in the classic system is maintained using ERC regulatory content, which supports smooth transitions and consistency during the migration.

Final Takeaway

SAP S/4HANA for Product Compliance isn't just a system — it's a strategic enabler. With automation, analytics, and AI integration, companies can:

  • Shift from reactive to proactive compliance
  • Embed risk management across the product lifecycle
  • Ensure global readiness — in every market, every shipment

If you manufacture, sell, or ship products globally, this solution transforms compliance from a cost center to a competitive advantage.

@Michael_Schalk @Chr_Vogler @Saskia_Kalmbach @Michael_Mulder @Mohammed-Zahid @andrea_giessmann 

2 Comments
Chr_Vogler
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hello,
can you correct the title to spell SAP S/4HANA correctly?
Thanks in advance

Christian

Mohammed-Zahid
Associate
Associate
0 Kudos

Good Work .