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Product Safety & StewardshipIn Discrete IndustriesSustainability Solution Management
SAP EHS Management Conference , October 4th, 2011
Agenda
Product Safety and Stewardship
• Solutions Portfolio
• Solution Roadmap
• ERP EhP6
• Product Compliance (EHSM 3.0 – discrete industries)
• Seeking Customer Engagement
© 2011 SAP AG. All rights reserved. 2
• Seeking Customer Engagement
Ask!
© 2011 SAP AG. All rights reserved. 3
Product Safety & StewardshipSolutions PortfolioSolutions Portfolio
SAP Sustainability Map“Product Safety and Stewardship”
Sourcing &Sourcing & TraceabilityTraceability GreenGreen Supply ChainSupply Chain
Smart Grid ParticipationSmart Grid
ParticipationProduction Energy
ManagementProduction Energy
ManagementCarbon
ManagementCarbon
ManagementFacility Energy Management
Facility Energy Management
Natural Resource Management
Natural Resource Management
Benchmarking& Analytics
Benchmarking& Analytics
Strategy Management
Strategy Management
Financial Risk& PerformanceFinancial Risk& Performance
Engagement &Corp. CitizenshipEngagement &
Corp. CitizenshipMateriality &
Assured ReportingMateriality &
Assured Reporting
Industrial Health & Safety
Industrial Health & Safety
Environmental Compliance
Environmental Compliance
Risk Assessment& Reduction
Risk Assessment& Reduction
Process SafetyProcess SafetyEmergency
ManagementEmergency
Management
Supply
Operations
ExecutiveManagement
Environment,Health & Safety
© 2011 SAP AG. All rights reserved. 5
ProductCompliance
ProductCompliance
Recycling& ReuseRecycling& Reuse
ProductFootprintProductFootprint
Material &Product Safety
Material &Product Safety
SustainableDesign
SustainableDesign
Sourcing &ProcurementSourcing &
ProcurementTraceability
& RecallTraceability
& RecallGreen
LogisticsGreen
LogisticsSupply Chain
Design & PlanningSupply Chain
Design & Planning
Availability, Security, Accessibility & Privacy Availability, Security, Accessibility & Privacy Green ITGreen IT
MobilityMobilityResidential
EnergyResidential
EnergyPersonalFootprintPersonalFootprint
Labor Compliance & Human Rights
Labor Compliance & Human Rights
Strategic Workforce Management
Strategic Workforce Management
Travel ManagementTravel ManagementDiversityDiversity
Product
SupplyChain
IT
Consumers
HumanResources
v2
Scope of SAP’s Solutions PortfolioEnabling 5 business capabilities in Product Safety & Stewardship
What business
What needs to get better to make products “sustainable”?
index
Instructions
How does that impact product manufacturers?
Standards & regulations + differentiation
© 2011 SAP AG. All rights reserved. 6
ProductCompliance
ProductCompliance
Recycling& ReuseRecycling& Reuse
ProductFootprintProductFootprint
Material &Product Safety
Material &Product Safety
What business capabilities do product manufacturers need to succeed?
SustainableDesign
SustainableDesign
How does SAP help product manufacturers to deal with the risks, and capitalize on the opportunities?
SAP EHSM
SAP REA
SAP Carbon Impact, PCM
SAP EHSM
SAP Business Suite (ERP, PLM, SCM, CRM, ..)
EHS Regulatory Content, REA BC Sets, LCA Content, .. Expert Services
SAP Solutions (Product Safety and Stewardship)
Compliance, and then StewardshipMulti-nationals deal with many standards and regulations
Discrete Industries Process Industries
Business Capability
High Tech(incl. Cons. Electronics)
Medical Device
AutomotiveIndustrial
Machinery & Components
Aerospace and Defense
Cons. Prod. – Durable
(incl. Retail)
Consumer Products –
Fast Moving (incl.
Ingredients)
MillProducts
(incl. Mining)
Chemicals(incl. Oil &
Gas)
LifeSciences
Product Compliance
RoHS, REACH for Articles
RoHS, BPA, REACH for Articles
ELV, REACH for Articles, IMDS
REACH for Articles
REACH for Articles, PDSL
RoHS, REACH for Articles
REACH registrationFIFRA
REACH for articles, BPA
REACH registration & monitoring
REACH registration & monitoring
Material and OSHA, OSHA,
© 2011 SAP AG. All rights reserved. 7
Material and Product Safety
OSHA, TSCA, GHS
OSHA, TSCA, GHS
OSHA, TSCA, GHS
OSHA, TSCA, GHS
OSHA, TSCA, GHS
OSHA, TSCA, GHS
OSHA, TSCA, GHS/CLP
OSHA, TSCA, GHS
OSHA, TSCA, GHS/ CLP
OSHA, TSCA, GHS/ CLP
Material and Product Safety
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
ADR, IMDG, IATA-DGR
Recycling and Reuse
Packaging, batteries, WEEE Dir.
Packaging, batteries, WEEE Dir.
ELV,ISO 22628
Packaging, Batteries
Packaging Directive
Packaging Directive
Packaging Directive
Environmental Footprint
ISO 14025 based PCLCA,SMRS™
ISO 14025ISO 14067, ISO14025, OIA Index
Grenelle II, ISO 14025,PAS2050
ISO 14040/44
Sustainable Design
Packaging Scorecards
Packaging Scorecards
Packaging Scorecards
Packaging Scorecards
Sustainable Design
EPA Greenscreen
ISO 60601-1-9
Cradle-to-cradle®
Cradle-to-cradle®
Cradle-to-cradle®
Note: Analysis based on SAP customer initiatives in mostly North American market. Relative industry pain v9
Product ComplianceSPRC enables Design for Compliance
ProductCompliance
ProductCompliance
Recycling& Reuse
Recycling& Reuse
ProductFootprintProduct
FootprintMaterial &
Product SafetyMaterial &
Product SafetySustainable
DesignSustainable
DesignProduct
Key Drivers
Regulatory Substance Restrictions & Declarations• EU RoHS• EU REACH-SVHC (Art. 33)• China RoHS
US IL HB2572 – Br. Flame Retardants
SAP Product and REACH Compliance (SPRC)
© 2011 SAP AG. All rights reserved. 8
• US IL HB2572 – Br. Flame Retardants• Health Canada - Bisphenol A• …
Industry Lists of Declarable Substances• PDSL (A&D)• GADSL (Automotive)• IPC J-STD-709 - Halogen Free (HT/E)• …
Customer Specific Requirements• IBM• Kaiser Permanente, schedule H• …
Key Capabilities• Supplier data collection• Data management• Compliance analysis & Reporting• Process controls (e.g. PO, SO)
Product ComplianceSupply chain data collection
+
Interfaces to data pools
like IMDS, BOMCheck
Solution Detail
© 2011 SAP AG. All rights reserved. 9
like IMDS, BOMCheck
Compliance data
import from service
providers like IHS, QPoint, PartMiner
Product ComplianceCompliance assessment & reporting
Solution Detail
© 2011 SAP AG. All rights reserved. 10
Product ComplianceIntegrated capability roadmap
Key Drivers• Proliferating legislation (eg. Key Drivers• Proliferating legislation (eg.
Key Drivers• Legislation enforcement
(RoHS-2, requiring testing)
• Customers requiring testing
Key Drivers• Legislation enforcement
(RoHS-2, requiring testing)
• Customers requiring testing
Key Drivers• Growing lists of hazardous
substances (e.g. SVHC’s)• NGO pressure• Channel push for eco-labelsBusiness Objectives• Ensure marketability
Key Drivers• Growing lists of hazardous
substances (e.g. SVHC’s)• NGO pressure• Channel push for eco-labelsBusiness Objectives• Ensure marketability
“Design for compliance”Compliance Workbench“Design for compliance”Compliance Workbench
“Manage supply chain risk”Embedded Controls“Manage supply chain risk”Embedded Controls
“Optimize marketability”Enterprise Analytics“Optimize marketability”Enterprise Analytics
© 2011 SAP AG. All rights reserved. 11
• Proliferating legislation (eg.
RoHS, REACH Art. 33)• Industry standards (eg. JIG)• Customer requirementsBusiness Objectives• Ensure compliance by design• Drive efficiency and scaling
of compliance managementKey Capabilities• Material composition mgt• Supply chain collab mgt• Compliance assessment• Design for compliance• Querying & reporting
• Proliferating legislation (eg.
RoHS, REACH Art. 33)• Industry standards (eg. JIG)• Customer requirementsBusiness Objectives• Ensure compliance by design• Drive efficiency and scaling
of compliance managementKey Capabilities• Material composition mgt• Supply chain collab mgt• Compliance assessment• Design for compliance• Querying & reporting
• Customers requiring testing• Changes to product after
market introductionBusiness Objectives• Manage supply chain risk• Manage customer/sales riskKey Capabilities• Compliance profile mgt• ECO/MCO check• Purchase order check• Incoming inspection check• Sales order & delivery check• Service order check• Management of change• Cross enterprise workflow
• Customers requiring testing• Changes to product after
market introductionBusiness Objectives• Manage supply chain risk• Manage customer/sales riskKey Capabilities• Compliance profile mgt• ECO/MCO check• Purchase order check• Incoming inspection check• Sales order & delivery check• Service order check• Management of change• Cross enterprise workflow
• Ensure marketability
• Grow brand• Leverage competitive lock-
out strategiesKey Capabilities• Integration to regulation
management• Alternatives assessment• Preferred materials
management (“positives list”)• Phase-out optimization• … (tbd)
• Ensure marketability
• Grow brand• Leverage competitive lock-
out strategiesKey Capabilities• Integration to regulation
management• Alternatives assessment• Preferred materials
management (“positives list”)• Phase-out optimization• … (tbd)
v4
Product ComplianceCompliance controls
Example:
Purchase Order is
flagged if it
contains a
Solution Detail
© 2011 SAP AG. All rights reserved. 12
contains a material for
which
compliance exemption
will expire
Product ComplianceREACH registration and checks
Key Drivers
Regulatory Registration Requirements• EU REACH
SAP Product and REACH Compliance (SPRC)
ProductCompliance
ProductCompliance
Recycling& Reuse
Recycling& Reuse
ProductFootprintProduct
FootprintMaterial &
Product SafetyMaterial &
Product SafetySustainable
DesignSustainable
DesignProduct
© 2011 SAP AG. All rights reserved. 13
Key Capabilities• Material assessment• End point, use & exposure coverage• Registration data management• Registration & SIEF project tracking• IUCLID 5 integration
Material and Product SafetyEHSM supports hazardous material compliance and labeling
Key Drivers
Occupational Health• OSHA HCS• WHMIS• REACH (eSDS)• …
SAP EH&S Product Safety
ProductCompliance
ProductCompliance
Recycling& Reuse
Recycling& Reuse
ProductFootprintProduct
FootprintMaterial &
Product SafetyMaterial &
Product SafetySustainable
DesignSustainable
DesignProduct
© 2011 SAP AG. All rights reserved. 14
Dangerous Goods• IATA DGR• ICAO-TI• RID• ADR• ADN• IMDG code• TDG• GHS• CLP• …
Key Capabilities• Vendor MSDS Management• Process controls (e.g. Purchasing)• MSDS Authoring• Labeling• Substance Volume Tracking• Dangerous Goods Management
Recycling and ReuseSAP REA supports fee calculations for recycling schemes
Key Drivers
Extended Producer Responsibility (EPR) Regulations• EU Packaging Directive• EU Battery Directive• EU WEEE
Canada, SWEEP
SAP Recycling Administration
ProductCompliance
ProductCompliance
Recycling& Reuse
Recycling& Reuse
ProductFootprintProduct
FootprintMaterial &
Product SafetyMaterial &
Product SafetySustainable
DesignSustainable
DesignProduct
© 2011 SAP AG. All rights reserved. 15
• Canada, SWEEP• China WEEE• …
Industry Packaging Scorecards• Walmart Sustainable Packaging
Scorecard • TESCO• … Key Capabilities
• Master data management (fractions, price lists)• Declaration generation• Fee calculation & posting• FI/CO integration
Recycling and ReuseRecycling reporting
Solution Detail
© 2011 SAP AG. All rights reserved. 16
“Embedded Product Compliance”End to end process reference model
Ensuring supply chain
compliance, safety & continuity
Meeting customer
demands & obligations
Developing safe &
sustainable productsReporting product
compliance & stewardship
Develop-Mfr
Head of Development/ Engineering
Head of Manufacturing / Operations
Head of Sales / Service Head of Compliance / Sustainability
CxO
© 2011 SAP AG. All rights reserved. 17
Quality/EH&S/
Compliance/
Stewards
Service
Order
Check
Sales
Order &
Distribution
Check
Risk & Compliance
Assessment,
Document, Register
Communicate
Safety &
Stewardship
Information
Reporting,
Certification
& Auditing
Incoming
Inspection
Check
Content & Expert Services
Develop-
ment
Supply Chain
Management
Manufacturing
& Operations
Supply
Chain
Collaboration
Quantity &
Movement
Tracking
Develop for
Compliance/
Sustainability
Materials &
Composition
Management
Release
Check
Supplier
Qualification
& PO Check
Hazmat
Safety Mgt
& Labeling
Packaging
& Transport
Check
EH&S Regulation
Knowledge
Management
Product Safety & StewardshipSolution Roadmap: Product ComplianceSolution Roadmap: Product Compliance
Product ComplianceRecently released SPRC 2.0 SP02 provides in-house solution for IMDS
SAP Product and REACH Compliance supports the IMDS process by
Generating the product structure for an IMDS Material Data Sheets automatically from production or engineering BOMs in SAP ERP
Providing a Basic Material Management in SAP ERP which can beintegrated in the product development process
Tracking customer Material Data Sheet requests New
© 2011 SAP AG. All rights reserved. 19
Tracking customer Material Data Sheet requests
Managing supplier dependencies for purchased parts
Checking IMDS requirements (restricted substances, completeness, consistency)
Creating and sending Material Data Sheet requests to suppliers
Tracking the status of IMDS Material Data Sheets
Validating supplier Material Data Sheets
New
New
New
New
Product ComplianceIMDS customer collaboration process flow
Supplier Customer
A customerrequests a Material
Data Sheet for a product over the
IMDS system
The material data sheet for therequested product can be
The MDS Request will beThe Material Data Sheet can be
© 2011 SAP AG. All rights reserved. 20
SAP Enterprise Resource Planning (ERP)
SAP Product and REACH Compliance
IMDS Customer MDS Center
Material Master
Records
Bill of Materials
Purchasing Info
Records / AMPLs
Compliance WorkbenchBasic MaterialManagement C-X
P-A
P-B
The MDS request will beprocessed and is displayed in the
IMDS Customer MDS Center
Status Customer Part
requested product can becreated by using existing SAP
logistic data and the SPRC Basic Material Management
Status Customer Part
REQ Cust. ABC C-X
Status Customer Part
SENT Cust. ABC C-X
The MDS Request will bereceived by the SAP Product
and REACH Compliance via theIMDS interface
The Material Data Sheet can beassigned to the customer reqest in the IMDS Customer MDS Center –By sending the MDS the request is
answered
�Automatic configuration wizard Reduces implementation effort &
increases ease of implementing legal
updates
�Universal data collector connects
transactional data from multiple data
Upcoming in EhP6SAP Recycling Administration
© 2011 SAP AG. All rights reserved. 21
transactional data from multiple data sources to REA compliance processes
�Workflow introduction supports key
user in daily work
�Solution scope expansion by
introducing article/packaging variants
(basis for packaging design optimization/Design for Environment)
This document, or any related presentation about SAP’s strategy and possible future developments, directions, and functionality of products and/or platforms, are all
subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise, or legal
obligation to deliver any material, code, or functionality. See disclaimer on slide 2.
SPRC (JAVA)
Next Steps for Product Compliance in Discrete Industries
Significant Investment in Product Compliance for Discrete Industries
Alignment of SAP Product and REACH Compliance into the EHSM addon
� Single stack; ABAP -> lower TCO, more robust integration, improved upgradability
� Harmonized UI -> better cross solution usability
© 2011 SAP AG. All rights reserved. 22
ERP Product Safety• MSDS• Dangerous Goods• Labeling
• Substance volume tracking
EHSM 2.0
REAEH&S Basic Tools• Property tree• Search• ..
Health and Safety• Incident management• Risk Management
Material Master• Identifier• Logistics• Cost• etc.Document Management Services• Versioning, check in/out, etc.
SPRC (ABAP)• Product compliance• Supply chain collaboration
SPRC (JAVA)• Supply chain
collaboration• Registration
management
ERP Product Safety• MSDS• Dangerous Goods• Labeling
• Substance volume tracking
EHSM 3.0
REAEH&S Basic Tools• Property tree• Search• ..
Health and Safety• Incident management• Risk Management
Material Master• Identifier• Logistics• Cost• etc.Document Management Services• Versioning, check in/out, etc.
Product Compliance• Supply chain collaboration• Product compliance• Registration management
Next Steps for Product Compliance in Discrete Industries
UI/UX Refresh
• Alignment with needs of specialists and casual users
• Improved search
© 2011 SAP AG. All rights reserved. 23
• Improved search capabilities
• Better customization / personalization options
• Consistent user experience for all of EHSM
Next Steps for Product Compliance in Discrete Industries
Enhanced Workflow Management
Orchestrated cross-functional response to compliance exceptions (non-
compliance, missing data, data
discrepancies)
Enhanced Regulatory List ManagementMore accessible list versioning, better handling of change impact
Structured data object for integration,
© 2011 SAP AG. All rights reserved. 24
New Compliance ObjectStructured data object for integration, allows easier integration to process pre-material master, faster response
New Mass Assessments
Product and Component guided
compliance assessments, mass maintenance, calculated vs. claimed
status
New PLM and CAD Integration LayerPush compliance data and processes into native engineering environments
Enhanced Logistics Integration LayerPush compliance data and logic into ERP logistics processes
Product Compliance for Discrete ManufacturersInnovation focus on streamlining supplier collaboration
Targeted Challenges
Supplier Material Declaration• Response quality / time• Business confidential information• Gaps
“Product Compliance Business Network”
ProductCompliance
ProductCompliance
Recycling& Reuse
Recycling& Reuse
ProductFootprintProduct
FootprintMaterial &
Product SafetyMaterial &
Product SafetySustainable
DesignSustainable
DesignProduct
© 2011 SAP AG. All rights reserved. 25
Regulatory updates• Updates to declarations
Key Capabilities under Investigation• Cloud-based business network• Many-to-many publishing & subscription• Materials & supplier compliance/risk profile• Expert community
Product Safety & StewardshipSeeking Customer engagementSeeking Customer engagement
Seeking Customer Engagement
• EHSM 3.0 Development
• Concept/Design review (in progress)
• Living Library Projects
• REACH-Like
• LCA & Labeling
• Sustainable Design
© 2011 SAP AG. All rights reserved. 27
• Sustainable Design
Note: engagements require customer feedback agreements
Thank You!
Contact information:
Richard Vermeij, [email protected]
Matt Dion, [email protected]
Rüdiger Kreuzholz, [email protected]
Karin Fent, [email protected]
No part of this publication may be reproduced or transmitted in any form or for any
purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain
proprietary software components of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of
Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6,
POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes,
© 2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.
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© 2011 SAP AG. All rights reserved. 29
POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
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All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
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Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind,
zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.
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IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390
Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6,
HTML, XML, XHTML und W3C sind Marken oder eingetragene Marken des
W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects
Explorer, StreamWork und weitere im Text erwähnte SAP-Produkte und
-Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und anderen Ländern.
Business Objects und das Business-Objects-Logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius und andere im Text erwähnte Business-Objects-Produkte und -Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der Business Objects Software Ltd. Business Objects ist ein Unternehmen der SAP AG.
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© 2011 SAP AG. All rights reserved. 30
Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli und Informix sind Marken oder eingetragene Marken der IBM Corporation.
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Product ComplianceSupport for regulatory content
3rd Party Service
Regulations, Interpretation of regulations, Experts, Notifications
Different types of “regulatory content” in play
SAP Service
Updates to regulatory restricted and declarable substance lists, etc.
© 2011 SAP AG. All rights reserved. 31
SPRC
QA
SPRC
Prod
Validation + Transport
(Customer Action)
SAP Service (Pre-defined)
Regulatory restricted and declarable substance lists, thresholds, exemptions (RoHS, REACH SVHC)
Substance Master Lists (~15,000,Substance Identifiers, CAS#, ..)
SAP Service
Customer restricted and declarable substance lists