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petraar
Advisor
Advisor

For corporations, specifically chemical companies, the past two decades have presented more than ever new challenges to effectively manage their product portfolio. Product Stewardship and regulatory groups have moved from siloed departments into the spotlight because of more challenging regulatory requirements. Substances contained in products and raw materials need to be tracked in detail during procurement, manufacturing, and sales processes. New regulations have enforced the need for increased collaboration and integration throughout the product lifecycle. Consumer demands for sustainable products are increasingly impacting business models and non-compliance has the potential to significantly damage brand reputation and result in lost business. The chemical industry already realized years ago that this complexity could not be managed with non-integrated systems and excel sheets anymore. This ever-increasing complex environment compelled IT departments to sunset their isolated systems and move to an integrated approach.

Functionality, data, and documents need to be accessible throughout business processes and integration is key. In an integrated system, regulatory content, and documents such as safety data sheets and labels can be generated directly in an ERP system, allowing the distribution during business processes at the right times. For example, generated data is reused for the management of HazMat transportation and product labels to ensure the products are handled safely. Furthermore, the generated data is used to feed into marketability processes, addressing a vast number of global regulations which the business is required to comply with.

Proven capabilities already utilized for many years…

petraar_0-1706289054318.png*SAP S/4HANA for Product Compliance classic capability map

integrated in business processes…

petraar_1-1706289054325.png

*The only solution enabling product compliance capabilities integrated in the ERP system

Today, customers not only look at the conduct or actions of their respective supplier. Buyers are interested in the end-to-end supply chain. Focus is not only on products, raw material, and intermediates but the substances and components contained before and after the product is manufactured. Responsibility to determine and manage risks is moving more from the regulator to the producer. Manufacturers are in need of collecting, generating, and managing more data than ever and this trend will only continue. Solid product and component data is needed to be shared between business partners and data needs to be collected and generated to comply with new REACH regulations.  I have personally dealt with country specific regulations such as Korea and Turkey REACH and legislation will continue to emerge and evolve globally. New platforms are needed for collaboration internally and externally across the supply chain to manage processes and collect data.  

To evolve, this is where extensions to SAP S/4HANA for Product Compliance come in. SAP and ecosystem solutions such as from Opesus and Coac can provide further automation supporting notification requirements, extracting data from files such as SDSs or including AI capability for analytics available on SAP store www.SAP.com/store. Further, regulatory content is available from 3E Company. Look out for these offerings evolving and new cloud solutions to further gain efficiency and the competitive edge.

2 Comments
christoph_bergemann
Active Contributor
0 Kudos

Hello

reading the blog: I believe you are refering to "EHS Classic". Please do not the use the term "Product Compliance" if you refer to "EHS Classic to avoid conflict with the new SAP solution.

Many consultants (and companies using SAP) have many problesm with the terms SAP is using.

According to online help: "EHS Classic" is  defined here: as: https://help.sap.com/docs/SAP_ERP/8a399f5444164440ac4f426e847ec901/7209c453f57eb44ce10000000a174cb4....

The new "Product Compliance" software is described here: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/679a1d3744d34b43832...

The term "Product Compliance" (on the top) has some conflicts with this software: https://help.sap.com/docs/EHSM/c2db47abe44e4aa7ab1be93e4c20ae18/5b22b8d6606b4d32b8af9283901d3bdc.htm...

This software does have a "submodule" which is as well called "Product Compliance"

Lot of confusions. And there are more to list (i will avoid to add more confusion here).

What comes next? from my point of view: Simple answer: EHS Classic is getting only "error corrections" and only if a "REACH Like" regulation might come up SAP will invest here.

SAP is focusing on the follow up solution "Product Compliance". Here we need to differentiate "On Premise" or "Cloud" Version. For the "On Premise" Version: the next major change will happen with S/4 HANA 2025. The Cloud version will be adjusted much faster.

This difference might be a reason to check: is "on premise" a good selection (for a S/4 HANA installation) or is a "privat cloud" not a better option?

Any how: According to SAP official Roadmap: The future is the new "Product Compliance" version.

With best wishes

C.B.

 

 

 

 

christoph_bergemann
Active Contributor
0 Kudos

Hello

the term "Product Compliance" (and many similar terms)  are used in many areas. Examples you will find here:

https://community.sap.com/t5/product-lifecycle-management-q-a/using-product-compliance-for-discrete-...

https://community.sap.com/t5/product-lifecycle-management-q-a/classic-scope-about-the-product-compli...

https://community.sap.com/t5/enterprise-resource-planning-q-a/ehs-product-compliance-search-complian...

https://community.sap.com/t5/product-lifecycle-management-q-a/sap-s-4hana-for-product-compliance-inc...

https://community.sap.com/t5/product-lifecycle-management-blogs-by-members/history-of-sap-product-co...

https://community.sap.com/t5/product-lifecycle-management-q-a/regulatory-compliance-module-options/q...

https://community.sap.com/t5/product-lifecycle-management-q-a/sap-product-compliance-vs-sap-product-...

https://community.sap.com/t5/product-lifecycle-management-q-a/help-on-sap-prc-product-and-reach-comp...

https://community.sap.com/t5/product-lifecycle-management-q-a/classic-scope-about-the-product-compli...

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-sap/secret-superpower-within-prod...

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-sap/pfas-bans-and-product-complia...

And many more blogs/questions/discussion  etc. could be listed here.

Therefore: it is important (from my perspective) to make clear: what is the focus? A special "SAP Software" (Module) or a "Business Process" or what else.

And with R/3 and S/4: it is not easy to seperate ! E.g. with S/4 the solution "SAP Product and Reach  Compliance" can not be used any more. If you use still R/3: you can go on with the use (at least from technical perspective).

Then with R/3 <> S/4: You have the (not easy to be understood) "Compatibility" approach used by SAP.

Anyhow:

You will find a lot of links using Google Discussing "what is Product Compliance" about. There is clearly an overlap to the SAP solutions; but not always.

C.B.

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