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Mastering the REACH Regulation in the long term: How an SRM system supports the implementation of the REACH Regulation and upcoming tightening measures

published on
19.11.2024

Chemicals regulations such as the REACH regulation and the new regulations on limiting PFAS (perfluoroalkyl and polyfluoroalkyl substances) pose enormous challenges for SMEs. These substances are contained in many products and production processes - from seals in machinery to medical devices and packaging. With the planned tightening of the EU regulation, it will be essential for companies to carefully check their supply chains for PFAS and identify alternative materials and suppliers in good time to ensure compliance and minimize risks.

The European Chemicals Agency (ECHA) and the EU Commission are planning to significantly restrict the use of PFAS, with a possible decision on comprehensive bans by 2025. While some companies may see the new requirements as restrictive, there is a proactive strategy that can strengthen procurement as a driver of resilience and competitiveness.

The background to PFAS and REACH

The REACH regulation aims to reduce the impact of hazardous chemicals on the environment and human health. This also includes the expansion of the list of substances of very high concern (SVHC), which is updated by the ECHA every six months. These regulations are binding for companies along the entire supply chain - from manufacturers to processors and end users. The planned PFAS restriction could affect up to 10,000 substances and would therefore have a far-reaching impact on all companies that use fluorinated polymers and similar chemicals in production.

Challenges and opportunities for procurement in SMEs

The upcoming PFAS regulation affects numerous industries, especially companies in the mechanical and plant engineering sector that manufacture hydraulic components, seals and valves. Purchasing is required to check the entire supply chain for the use of PFAS and find alternatives. However, this presents both challenges and opportunities.

  • Supplier and material evaluation: In order to minimize potential risks, companies must know the composition of their materials and check for components containing PFAS. This requires deep transparency in the supply chain, which requires access to data and reliable supplier information.

  • Compliance and risk management: Continuous adaptation to REACH and PFAS requirements is essential in purchasing. Structured compliance management can help to avoid unexpected costs and ensure compliance with legal regulations.

  • Cost management and alternatives: As substitute materials are often more expensive and difficult to procure, new pricing strategies must be developed and alternative materials and suppliers must be qualified.

Proactive steps to strengthen the supply chain

In order to successfully master the upcoming PFAS regulations, targeted preparation is essential. Here are six steps that can help procurement departments adapt to the new requirements:

1. supply chain analysis and transparency: A thorough analysis of the supply chain, which includes the identification of PFAS-containing products and suppliers, lays the foundation for compliant procurement.

2. risk assessment and prioritization: Critical materials and suppliers should be identified and prioritized at an early stage in order to develop targeted measures for the most important risks.

3. identification of alternatives: Purchasing should proactively search for PFAS-free alternatives and hold initial discussions with potential new suppliers.

4. contract and compliance adjustments: Contracts with suppliers should be adjusted to include PFAS compliance requirements and clauses for future regulatory changes.

5. optimization of internal processes and training: The purchasing team should be trained in the new regulations and internal processes should be aligned with the new requirements.

6. use of digital tools: A supplier relationship management system (SRM) such as helps to automate compliance and risk assessment and keep supplier data up to date at all times.

The role of digital solutions: How an SRM system can support

Digital supplier relationship management tools facilitate the overview and continuous adaptation to REACH and PFAS requirements. An SRM system enables complete transparency of suppliers and articles along the supply chain and reduces administrative effort through automated queries and reminders. By segmenting the supplier base according to PFAS relevance and compliance status, targeted measures can be implemented to reduce risk and ensure REACH compliance.

Conclusion and outlook

The stricter PFAS regulations pose both challenges and opportunities for SMEs. Through early preparation and the use of digital solutions, procurement can become the decisive authority for the long-term resilience and competitiveness of the company. Adapting to REACH and PFAS requirements may initially involve effort, but ultimately strengthens compliance and risk management.

Companies that take strategic measures now are ideally positioned to react flexibly to regulatory changes in the future.

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