Business Case For Product Compliance Software

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Executive Summary

Over one-third of senior EHS decision-makers interviewed by Verdantix in our 2018 global EHS leaders survey have plans to adopt software to manage ‘product compliance for chemicals and components’ across all their facilities during 2019. This report provides EHS and product compliance decision-makers with an empirical, evidence-based framework to evaluate product compliance software adoption. In order to provide real-world context, this report also assigns representative costs to compare three scenarios: business-as-usual practices; optimal in-house practices; and commercial software vendor-enhanced practices. Our analysis finds that cost accounting of dispersed in-house activities alone already justifies the business case for commercial product compliance software. This report details the key activities associated with product compliance management and the estimated savings achieved for managing product compliance within hypothetical multinational apparel and pharmaceutical firms.

Table of contents

Business Case For Product Compliance Software
The Desire To Better Manage Compliance And Risk Avoidance Drives Software Adoption

Product Compliance Software Provides Firms With Better Visibility To Manage People, Processes And Data

How To Structure The Business Case For Product Compliance Software
Assess The Required Investments And The Potential Savings From Efficiency Gains

Apply The Business Case Model To Generate Quantified Benefits
Business Case Model Applied To A $6 Billion Revenue Global Apparel Firm
Business Case Model Applied To A $2 Billion Revenue Multinational Pharmaceutical Firm

Implications For Managing Product Compliance

Table of figures

Figure 1. Defining Product Compliance
Figure 2. Product Compliance Vendor Backgrounds Are Diverse
Figure 3. Information Management Landscape For Product Stewardship
Figure 4. Ideal Framework For Product Stewardship Combines Governance, Product Data And Workflow
Figure 5. Modelling Five-Year Scenario Trends For A $6 Billion Global Apparel Firm
Figure 6. Modelling Scenarios For A $6 Billion Global Apparel Firm
Figure 7. Modelling Five-Year Scenario Trends For A $2 Billion Multinational Pharmaceutical Firm
Figure 8. Modelling Scenarios For A $2 Billion Multinational Pharmaceutical Firm

About the authors

Yaowen Ma

Senior Analyst

Yaowen is a Senior Analyst in the Verdantix EHS practice covering research on digital technologies, best practices and growth strategies. His current agenda focuses on EHS information management and the overlap with product stewardship, supply chain transparency, and sustainability disclosures. Yaowen has more than five years of experience managing and delivering EHS and sustainability research and consulting engagements. He holds a dual major bachelor’s degree in environmental management and international relations from the University of Pennsylvania.

Steve Bolton

Research Director

Steve leads the Verdantix EHS research practice, based out of our New York office. He has 25 years of experience advising on sustainability, EHS, circular economy, corporate social responsibility and other business value topics. Steve received a dual environmental science and public policy Bachelor's degree from The College of William and Mary, a Master of Environmental Management degree from Duke University, and an MBA degree from James Madison University.

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