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Ensuring material compliance in SMEs

published on
8.11.2024

Material compliance is an essential part of the production and supply process for companies in many industries. It is about ensuring that the materials used meet the strict requirements set by governments, international organizations and consumer protection groups. These requirements aim to minimize environmental damage, protect consumer health and ensure product quality and safety.

The importance of material compliance

The motivation behind material compliance is clear: chemicals, metals and other substances used in products can not only harm the environment, but also pose significant health risks to consumers and employees. By complying with material standards, companies help to minimize potential risks and guarantee a safe product experience.

Legal requirements at national and international level demand that companies comply with specific standards. These guidelines may include bans or restrictions on certain substances, as well as documentation and testing requirements. Non-compliance can lead to sanctions and damage to a company's image, which can affect not only the company itself but also its relationship with customers.

Important material compliance guidelines and standards

In the area of material compliance, there are a large number of standards and guidelines that are applied on an industry-specific or global basis. Some of the most important requirements include

  • REACH: The EU regulation requires the registration and evaluation of chemicals to ensure human health and environmental protection.
  • RoHS: This directive restricts hazardous substances in electronic devices and thus promotes more environmentally friendly production and better recycling options.
  • Conflict Minerals Regulation: This regulation controls the use of minerals such as tin, tantalum, tungsten and gold from conflict regions and ensures that companies do not use materials that contribute to the financing of conflicts.
  • ISO 14001: The international standard supports companies in implementing an environmental management system that monitors and reduces environmental impacts.

The challenges of material compliance in SMEs

For medium-sized companies, adhering to material compliance regulations can involve a great deal of effort. Identifying and evaluating all materials, documenting material compliance and communicating with suppliers and manufacturers are time-consuming processes that require specific expertise. Many companies therefore have a material compliance officer who is responsible for adhering to all compliance standards. In addition, regulatory requirements can force companies to adapt their supply chains or find alternative materials - a challenge that entails additional costs and complexity.

One of the main motivations for material compliance is the potential danger posed by harmful materials that can be used in products. Chemicals, metals and other substances can not only pollute the environment, but also pose serious health risks to consumers and workers. By ensuring that their products are free of hazardous materials or limiting them to safe levels, companies help to minimize the risk of harm.

How Tacto supports companies with material compliance

Tacto offers medium-sized companies a central solution for implementing the most important material compliance requirements. With an integrated system, Tacto helps to automate and efficiently design the entire compliance process:

  • Automated supplier queries: Creation and dispatch of REACH, RoHS and conflict minerals queries at supplier and article level to collect all the necessary information.
  • Data-based evaluations: The system automatically analyzes supplier responses, tracks non-conformities and initiates measures if necessary.
  • Proactive action control: The platform offers automated control to ensure compliance with all relevant regulations and enables a rapid response to new requirements.
  • Support with supplier selection: If certain materials or substances do not meet the compliance requirements, Tacto offers support in the search for alternative suppliers.

Conclusion: Material compliance as a strategic advantage

Material compliance is not only a legal must, but a crucial factor in gaining consumer trust and ensuring the long-term success of the company. For mid-sized companies facing limited resources, Tacto offers an efficient solution to automate the entire material compliance process and fulfill legal requirements.

For more information and a detailed step-by-step guide, download our white paper "Ensuring material compliance in SMEs". It will show you how you can master compliance requirements efficiently and strengthen your competitiveness at the same time.

Download Whitepaper now

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