We All Need A Cold Shower!
Caspar ter Horst
Co-founder of ProductIP carrying the title of Compliance Rebel. Driving force behind Compliance Tuesday, and LinkedIn Directives Inc, I challenge the status quo in product and supply chain compliance. #RegulatoryTsunami
In the realm of product compliance, focusing only on “high-risk” products can often lead to overlooking simpler items like garden hoses. However, when these hoses are repurposed as part of a trampoline sprinkler system, they pose a significant risk, as demonstrated by a recent recall.
This scenario underscores the necessity for a comprehensive system like ProductIP B.V. , where manufacturers ensure their products meet all safety standards. Importers and brand owners can focus on managing the performance of suppliers, assess whether marketing departments are introducing new risks through intended or unintended use, perform post-market surveillance, and ensure their businesses are adapting to new regulatory realities.
Why We All Must Change Our Approach:
1. Focus on Manufacturers: We need to shift from merely assessing products to monitoring manufacturers’ overall performance to ensure ongoing compliance.
2. Anticipate Risks: We must remain vigilant about potential unintended product uses and marketing that could introduce new risks.
3. Enhanced Post-Market Surveillance: It’s essential to actively monitor products after they hit the market to swiftly identify and address compliance issues.
4. Prepare for Future Compliance Challenges: We should update business models to keep pace with evolving regulations and market expectations.
What Needs to Be Fixed:
? Rethink Supplier Management: We often organize compliance for each order as if we can’t trust suppliers to be organized. It’s time to check their work but also trust their systems. Allow suppliers to manage product compliance using ProductIP B.V. and let them share their results directly with your accounts.
You may not realise but reviewing technical files is 10-30% of the effort of creating compliance files yourselves (on behalf of your suppliers, per each order).
?Modernise Compliance Tools: We must move beyond outdated spreadsheets and embrace advanced digital solutions like ProductIP B.V., designed to manage the complexities of modern compliance requirements.
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? Optimise Use of Technology: AI and databases should complement, not replace, robust compliance strategies. Integrating these technologies thoughtfully can enhance compliance efficiency.
C-Level Need to Take Notice of the Bigger Picture:
Ignoring the need to improve compliance strategies can lead to significant consequences for businesses in manufacturing, retail, and trade:
? Loss of Market Access: Non-compliance can mean losing the ability to sell products.
? Decreased Investment Appeal: Investors are less likely to back companies that don’t adapt to new regulations.
? Reduced M&A Value: Non-compliant companies are less attractive in merger or acquisition scenarios.
? Exclusion from Public Tenders: Failure to comply can disqualify companies from competing for public contracts.
Conclusion:
The recall of a garden hose turned hazardous trampoline sprinkler serves as a crucial reminder of why proactive compliance management is essential. By empowering suppliers to use systems like ProductIP B.V. , you and your team can shift focus to comprehensive risk management, better ensure product safety, and secure our business’s future in a regulatory-complex market.
#ProductSafety #ComplianceChange #EfficientReviewing #SupplyChainManagement #RiskManagement #FutureReadyCompliance