Friday, June 14, 2013

Product Compliance - an organization growth enabler

A few weeks back, I had a discussion with a client about Product Compliance. It was a very interesting as some of them saw compliance as a necessary evil, which was complete opposite to my perspective.

Organizations today are facing a constant challenge to keep up with ever changing product regulation.  Every year, quarter brings increased global product compliance laws, which requires increased spending by companies to mitigate the high risk of being non-compliant and to keep up with constantly changing laws. 

Companies can see this as a necessary evil or as an opportunity to growth enabler. Those that see as necessary evil take a project-based approach, while forward thinking companies take a holistic approach and take a process-oriented approach.  Organization need to view product compliance as a growth enabler.

The risk of being non-compliant increases as the product progress across different product stages.



Forward looking organization follows a simple guideline:
·       Enable compliance in early product stage, putting less pressure in the downstream stage
·     Design for “Social Compliance” which includes stakeholders like NGO, people, government as will play an important role in acceptance of a product
·    Take a proactive process based approach so the products are prepared upfront for any legislative changes
·     Educate and collaborate with suppliers early in the process putting less pressure on suppliers which allows companies to get the compliance date in-time
·        Electronically manage compliance data is well designed system

Product compliance does address risk, but with vision also provides growth opportunity for organizations as it prevents expensive product recall & product delays thus increasing revenue and profit.  Compliance is a living process, and not a point in time – but an ever-evolving process to meet compliance. 

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