SAP Product Compliance in the Automotive Industry

 

Automobile manufacturers (OEMs) and suppliers must comply with globally applicable regulations and directive for end-of-life vehicles (ELV). Certain ingredients may not be used or may only be used in exceptional cases in order to meet recycling and sustainability standards. This directive requires all manufacturers and suppliers within the automotive industry to declare the composition of all assemblies, components and materials used in motor vehicles in order to identify and trace them within the entire supply chain.

These requirements call for highly integrated data processing, as material information and supplier data along the entire supply chain are necessary. IMDS (International Material Data System), a system developed for the exchange of material data using a defined format between suppliers and customers, is already widely used within the automotive industry. DXC Technology is the responsible company for its development as well as its management.

 

SAP application companies are asking themselves how the existing data can be exchanged between their SAP system and the IMDS system.

SI PRO is in the fortunate position of being an SAP partner as well as a partner of DXC Technology and therefore the ideal consultancy company to implement an end-to-end software solution for integrating the company's own logistics and compliance data with supplier, customer and regulatory data. In addition, the implementation of IMDS incorporates the company's IMDS activities into established SAP business processes.

Management and Generation of Material Data Sheets

SAP product compliance tool uses bill of material, material, supplier master data and other SAP data to build up the compliance data structure. With IMDS implementation own material data sheets (MDSs) can be automatically generated from these compliance product structures and sent via IMDS. The communication channels to customers and suppliers via IMDS are synchronized in order to exchange data from and to IMDS. The received supplier MDSs are automatically assigned to the corresponding supplier part, integrated into the product structure, and checks against relevant regulatory lists and IMDS regulations are triggered. The relevant regulatory lists include ELV, REACH (SVHC, Annex XIV and XVII), RoHS, California Proposition 65, US Conflict Minerals, EU POP and many more. It is also possible to create own customer lists. All materials available in IMDS, own as well as public, can be used in the product structures. Additionally, own materials can be created in SAP and saved in IMDS if wanted. The regulatory lists and IMDS regulations are always kept up to date by automatic updates and a new check of compliance is triggered after changes have been made.

A further part of our software solution is the integration of suppliers and customers without IMDS within the non-automotive sector and also offers the integration of the China business via CAMDS.

The SAP IMDS interface supports the integration of the legally required data points which are used for SCIP notifications. Manual or automatic notifications to ECHA are also provided by us as part of the project.

The figure below shows how the product structure is initially set up in SAP (blue dashed box) and is completed with the data from IMDS (grey background). After completion of the product structure, own MDSs (blue) can be saved in IMDS or sent to customers via IMDS. Other documents, such as certificates of compliance, can be created from the SAP solution. The compliance status (compliant, non-compliant, missing compliance data, ...) and the check result (successful - green, with warning - yellow) are determined or displayed for each object within the product structure. This compliance status can then be integrated into the procurement and sales processes - for example including a note in the sales order if a product is not compliant regarding a certain legal regulation.

Benefits for your company

  • Reduce automotive compliance costs through efficient compliance requirement management, analytics, automated checks, and regular content updates.
  • Reduce risk by using up-to-date information and documents - "single source of truth" for company compliance data.
  • Increase revenue by optimizing product development and launch with embedded product compliance.
  • Establish a fully integrated system for supplier, customer, and regulatory information with your own business objects of your business planning.

SI PRO Consulting Solutions for SAP IMDS

We support automobile manufacturers (OEMs) and suppliers in planning, implementing, and supporting SAP Product Compliance solution with IMDS integration.

Experience shows that project preparation is of particular importance. Typically, a large number of stakeholders such as IMDS managers, responsible engineers, management, and IT have to be involved.

In the context of feasibility studies, project preparations or proof of concepts, SI PRO presents with its own SAP and IMDS demo systems how your requirements could be implemented.

Cost estimation and effort planning are typical activities for your implementation project.

The goal of the SAP Product Compliance solution with IMDS integration is to build one single source of truth for compliance data.

Project Management and Procedures

SI PRO supports classic process models, SAP Activate or agile methods such as Scrum and Kanban according to the customer's wishes. The tools used in projects are classic project management tools or tools such as Confluence and Jira to support documentation and communication.

Analysis and Blueprint or Activate Discover, Prepare and Explore

For the success of an IT project an analysis of the AS-IS situation as well as an exact definition of the TO-BE situation is very advantageous. In workshops all processes will be analyzed and defined together with SI PRO to optimize TO-BE processes for the implemented functionalities. The result of the analysis is typically a detailed concept document with a functional and technical detailed conception, which will be the basis for the subsequent implementation of the customer project.

SI PRO typically contributes best practices to this process.

Implementation or Activate Realize

The implementation phase involves the technical realization, i.e., the customizing of the SAP Standard software.

If required, the design and realization of additional developments up to add-ons takes place. Examples are customized or customer-specific certificates of compliance, customer-specific user interfaces with Webdynpro or Fiori.

Interfaces to other SAP systems or the connection to non-SAP systems are also realized.

The implemented solutions are functionally tested and documented.

Integration Test / User Acceptance Test

Once the settings and developments have been completed in the system according to the blueprint, the new functionalities must undergo a thorough test before they could be transported or used in the productive system. SI PRO can support in the creation of suitable test scenarios and their accomplishment.

User Training

Efficient and safe working with any new software functions works best if the involved users have been comprehensively trained. SI PRO offers corresponding training courses in the customer system. Training documents and web-based trainings can be created optionally.

Migration

For IMDS implementation an essential task is the transfer of already existing MDSs into the SAP software solution and the linking to supplier parts in the product structures.

Preparation for Go-Live

SI PRO provides support during the Go-Live, e.g., through technical checks, creation of jobs and a qualitative check for completeness of the relevant master data at the different levels (material, substance specifications, business partners, etc.).

After the successful Go-Live, SI PRO also supports its customers with further services (e.g., roll-out and implementation of further regulations) as well as application and technical support. We offer service level agreements with response times depending on the priority and the business impact.

Support offerings may include:

  • Provision of a team for support with defined reaction and response times
  • Ticket processing in the customer or SI PRO ticket system
  • Support via VPN access
  • On-site support if desired

Customers

Reference Deutz

Headquarters in Cologne, Germany
Founded in 1864

Project: Implementation of SAP Product Compliance

Challenges:

  • Integration of BOM management
  • Interfaces to CDX and IMDS
  • Adaptation of the check logic for different change statuses of the BOMs

Project services of SI PRO:

  • SAP PRC Blueprint for REACH SVHC and EU RoHS regulations
  • Implementation / customizing of SAP Product Compliance
  • Implementation CDX interface
  • Compliance documents for relevant regulations
  • Training and guidance on integration tests

Reference Windmoeller & Hoelscher

Headquarters: Lengerich, Germany
Founded in 1977

Project: Implementation of SAP Product Compliance

Challenges and Customer Benefits

  • Product Compliance with regulatory lists RoHS and REACH SVHC in SAP Standard
  • Optimization of processes
  • Integration business partners of the supply chain from CDX
  • SCIP notification via CDX
  • Digitalization of material compliance processes
  • Process integration into material management, sales, and order processing
  • Consideration of very extensive material BOMs
  • Order BOMs with variant configuration

Reference Viessmann

Headquarters: Allendorf (Eder), Germany
Founded in 1917

Project: Implementation of SAP Product Compliance

Challenges and Customer Benefits

  • Product compliance with regulatory lists RoHS, REACH, and other environmental regulations in SAP S/4HANA
  • Holistic integration of compliance-relevant business partners within the supply chain
  • Creation of an integrated system for processing of compliance data
  • Embedding of new compliance workflows in existing process structures
  • Holistic SAP-based IT solution for current and future regulatory compliance requirements

Why you should choose
SI PRO

SI PRO has been advising on SAP solutions since the earliest versions were released, and offers the most comprehensive level of best practice know-how.

 

Our consultants are familiar with specific issues, business processes, the latest SAP solutions, technologies, and appropriate procedures.

 

We can support you throughout your project’s entire life cycle, from analyzing your requirements to project planning, implementation, and maintenance.

 

Business Contact Managing Director
André Bremer
Phone +4962130982615
Email

 

Business Contact Partner
Arne Sickmann
Phone +4962130982615
Email