Supply chain insights: a look at information managementGlobal Business Briefing, February 2014Compliance data: is there ever enough? Is there sometimes too much? Is some data more valuable and necessary than other data? Is there noise disguised as critical information that serves only to add chaos to an already complicated process? Decision making is difficult without the right people; dysfunctional without the right processes; and down right risky without the right information. For instance, the traceability and origin of materials is a key data stream necessary to: accurately file required information (for example, on conflict minerals); validate responsible sourcing claims in countries with established fair labour practices or anti-corruption laws; qualify for exemptions to existing regulations; and achieve eligibility for trade preferences (such as Nafta tariffs). Filing incorrect disclosures, making false claims, or receiving exemptions or trade preferences based on incorrect or incomplete information can have host of negative impacts including regulatory agency audits, organisational and brand damage, revocation of exemptions and preferences and financial penalties.So, what is the right data, or the right mix of content? Where does it come from? How is it acquired? How can it be used effectively to mitigate supply chain compliance risks? Is there any way to stabilise this moving target in the cross hairs long enough to fire a round that lands somewhere close to the bullseye? First, consider a set of conditions that sets and moves the mark of relevant supply chain content: regulations pertaining to products, substances, materials, and packaging are exploding in number and type from every corner (market) of the globe. Keeping track of, and analysing, compliance requirements, information sources and demonstrating due diligence can be complex and time consuming; regulatory drivers have expanded to include areas of social responsibility focused on human rights, as well as environmental and ecological sustainability issues; many of these issues have been, or are being, codified into regulations with agency oversight and enforcement in line with the more traditional environmental, health and safety regulations; emerging industry standards, often developed by a consortium of powerful, vertically-aligned leaders with substantial market share, outline codes of conduct that often include conformance with a host of responsible sourcing requirements. Organisations that wish to maintain their market share in these industries will need to move quickly to a position of progressive conformance; high-profile organisations are beefing up their CSR programmes by proactively eliminating or restricting processes and materials throughout their supply chains that dont meet certain standards. The upstream supply chain reverberations will impact multiple supplier tiers and sub-tiers, and, at times, trace back to material origins; and NGOs continuously champion a host of hot button issues that emphasise thoughtful life cycle design considerations, such as zero waste and proof of responsible sourcing traceable to the origin through each link in the supply chain. These influential groups take no issue with publicly outing companies they consider to be egregious offenders, or conversely, endorsing those who outperform.Designing your organisational methods and managing material compliance content to align with enforceable regulations, customer expectations and industry standards expands the sphere of responsibility beyond what some suppliers can comfortably manage. Instead of the singular focus of complying with legislative-driven, agency-enforceable regulatory directives, compliance is expanding to encompass all that is required to maintain and expand market access. Those imposing compliance requirements are not looking for a checklist response. They are demanding a documented process that demonstrates due diligence and produces concrete evidence in alignment with their expectations. Organisations prepared to identify and map expanding expectations with the critical regulatory content and material information are positioned to define the scope and impact of supply chain material compliance. This exercise in planning and preparation should include: an outline of material compliance requirements mapped to compliance drivers (regulatory, customer/industry-specific, internal) and information sources; risk assessment (establish priorities); process development (centered on data management: collection, analysis, and distribution); resource assessment; standardisation; and agility planning.Gaining internal traction to ensure data, systems, resources and expertise are developed and managed to maintain and expand market access (achieve compliance) is no small task. Those involved will represent a robust cross-section of organisational disciplines and may include professionals that include legal counsel, supply chain, procurement, risk management, EH&S compliance, engineering, marketing, and more.Each stakeholder and decision maker will have their own list of unique concerns. However, many of their data requirements will have significant overlap. Raw material information (specification conformance, bills of substance, performance statistics) required of engineers in the product development phase will be useful and necessary in subsequent processes conducted by product and EH&S compliance. Supplier information associated with raw material sourcing will be needed by procurement, supply chain management and necessary for supplier risk assessments. The data management process from beginning to end involves substantial effort. Data has to be sourced, obtained, validated, analysed, aggregated, integrated, leveraged to stakeholders, applied to business processes and delivered in the format required in the time frame established to the compliance authorities. Ongoing maintenance is required, as this is not a one-time event.The lack of an all inclusive, self-contained system should not be a deterrent from evaluating solutions in the marketplace than can serve the business management processes surrounding supply chain information management. Analysing the size and scope of compliance requirements to identify the associated datasets is an important initial step. Engaging data sources (internal and external) to obtain and manage information required to close content gaps will involve a considerable multi-pronged effort. Capabilities to anticipate and monitor emerging issues that will impact supply chain information compliance will be necessary to ensure scalability and continued compliance.Business process efficiencies are needed to ensure that critical data is being sourced holistically (rather than piecemeal) and shared and leveraged simultaneously and continuously (instead of being sourced initially and re-obtained by another internal entity as needed and managed separately). The additional burdens created on suppliers to acquire, aggregate and distribute data to demanding customers, will eventually affect cost of goods. Data acquisition processes should seek to identify all necessary information to satisfy all internal disciplines and seek to simplify the data exchange (request and fulfilment).Progressive challenges await. Expectations from customers, consumers, regulatory agencies, and NGOs will grow in number and scope. The trick is not to eliminate, ignore or react after the fact, but condition your organisation to be competitively agile enough to anticipate and overcome obstacles, as, or before they appear. Organisations successful in these endeavors may convert supply chain content challenges into market expansion opportunities.The views expressed in contributed articles are those of the expert authors and are not necessarily shared by Chemical Watch.To comment on this article, click here:Chemical Watch Forumhttps://chemicalwatch.com/18348/supply-chain-insights-a-look-at-information-management