Compliance & Risk Management
Both government agencies and commercial enterprises are under pressure to comply with rapidly changing green and hazardous regulations.
- The American Chemical Society (ACS) has identified more than 250,000 regulated substances; they estimate that 50 new materials are added each week.
- The DLA Logistics Information Service (DLIS) Environmental Products Guide program aggregates guidelines for Green determination from numerous regulatory agencies. The definition of what is Green varies by product category and changes over time as rules are tightened and qualified products are added or removed.
XSB provides automated methods for the identification of hazardous and green items to help our customers ensure compliance with domestic (US) and international regulations.
In an increasingly connected and regulated world economy, material regulations in one country can significantly affect product availability in another. In particular, changes in technologies made by American manufacturers in response to international material regulations can have far-reaching impacts on the defense supply chain including diminishing manufacturing sources and material shortages.
To date, government agencies have been in reactive mode, responding to material or technology changes necessitated by regulatory compliance only after these changes have been implemented and problems with military parts are revealed.
In order to enable a more proactive approach towards an evolving regulatory environment, it is necessary to have as much accurate, timely, and relevant information as possible about parts in the supply chain. XSB developed an automated system to determine the presence of regulated materials in DoD Weapon System components. The system extracts information about materials and regulatory compliance from a variety of publicly available sources, including on-line catalogs, product datasheets, material safety data sheets, specifications, and environmental compliance documents. Part information is standardized using the patented XSB Master Data File (MDF) generation process and is then used to identify commercial parts or NSNs that contain regulated or restricted materials. The process acts as an early warning system alerting users to regulatory changes and their impact on the supply chain.
Green Procurement, the purchasing of products with minimal negative environmental impact, represents a significant driver in both public and private procurement. Many buyers are required to buy a product that is environmentally compliant over a similar product that is not. However, the ability to accurately identify Green items is complicated by the following factors:
- Changing Regulations: The definition of what is Green changes over time as rules are tightened and as qualified products are added or removed by regulating agencies. Changing environmental regulations make it difficult for both buyers and suppliers to stay on top of the numerous qualifications that contribute to Green determination.
- Differing Approaches to Green Determination: Multiple agencies regulate Green compliance; these agencies have differing guidelines that determine if a product is environmentally compliant. Some provide a specification based on the characteristics of an item, while others provide a Qualified Parts List of specific items by manufacturer name and part number.
- Supplier Data Quality: Supplier data quality is unreliable, often a supplier simply does not know if a product is Green, at other times they may over-qualify their products assuming that a Green qualification will improve their sales.
XSB developed an automated system to help overcome these obstacles to accurate Green procurement. This system classifies product descriptions to different environmental categories as defined by the various regulating agencies, these categories are used to determine the appropriate features that must be extracted to determine “Greenness”. When those features satisfy the corresponding criteria, the product is determined to be Green. Additionally, some of the regulating agencies provide a list of specific products that qualify as Green. The XSB system regularly collects these lists from Energy Star, EPEAT, WaterSense and FEMP. Using the XSB MDF technology it is easy to standardize the item identifying information and match these lists to supplier products.
This solution helps ensure that supply chain data is constantly up to date and reliable information on environmentally compliant products is being consistently communicated to buyers.
What are the Benefits:
XSB’s solutions enable organizations to assess the impact of, and rapidly respond to changing green and hazardous regulations resulting in improved compliance and risk management across the enterprise.
How can I Learn More?
For additional information, please feel free to contact us or call 631-371-8100.