ASSENTCOMPLIANCE MATT WHITTEKER MANAGER BUSINESS DEVELOPMENT
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1 MATT WHITTEKER MANAGER BUSINESS DEVELOPMENT
2 WHAT DO WE MEAN BY COMPLIANCE AUTOMATION? Using a combination of software and or services to take the work load off internal staff and on load them to a software platform or service provider. EXAMPLES: Automatically querying your supply chain with a custom compliance survey or wizard Scheduling or managing compliance related tasks with a CRM Compliance Relationship Management tool. Being able to run real time reports to see completion statuses for RoHS, REACH, CM. Using 3rd Party Regulatory Support or Data Collection Support.
3 THE GOALS OF COMPLIANCE AUTOMATION: The goal is not to replace current compliance staff. The goal is to make the compliance staff more efficient and more effective. Save time, Save Money, Increase Record Keeping Effectiveness, No Single Points of Failure in mission critical areas like compliance.
4 WHEN IS COMPLIANCE AUTOMATION RIGHT FOR MY COMPANY? When the incremental cost of a new hire is higher than the cost of an automation solution which will provide more value and benefit than a single resource could. When current resources are becoming overwhelmed or overburdened because of the expanding regulatory landscape When the need arises for scalable data management, collection mechanisms and reporting functions
5 WHEN IS COMPLIANCE AUTOMATION RIGHT FOR MY COMPANY (CONT D) Cost/Benefit Analysis and ROI. A Compliance Management System can start at ~$1000/mth with say a $5000 set up one time. This is for smaller divisions, 1-2 users. Total cost of ownership ~$13k/year over 5years = If the solution saves 1 person 8hrs a week in (reporting, task management, data collection Etc.) the cost is worth it in hours saved alone. LESS TANGIBLE BENEFITS: More transparent Easier maintenance of the process if key personal leave On demand support from service provider (dependant on service provider)
6 COMPLIANCE SOLUTION AND SERVICES VS THE COST OF A FULL TIME HIRE? CASE STUDY > JOB POSTING FROM MONSTER. Company Size 200M Market Cap OUTLINE: Posting was for a Compliance Management Position Salary: $ Tasks: Policy Development, Supply Chain Communication, Ensure Compliance with RoHS, REACH, Conflict Minerals and other salient regulations. Develop processes for compliance. Provided knowledge to internal stakeholders on compliance and regulations.
7 COST OF ASSENT VS FULL TIME STAFF FULL TIME STAFF Avg. Base Salary: $70, 000 Overhead: ~50% Total/Annum: Approximately $105, 000 ASSENT COMPLIANCE WITH EXPERT SUPPORT: Assent Software Suite: (Reach/RoHS/Conflict Minerals) Includes: Set up, communication portal, reporting tool, Turnkey Support and full software package Set up: $10,000 - $30,000 (based on ERP/PLM integrations. BOM import Etc.) Monthly Subscription: $3,000* *Includes Turnkey Support for Data Collection, Validation from Supply Chain for up to 750 suppliers + Reporting. Total Cost of Ownership 3yrs Assent Software + Support Services: $118,000 Total Cost of Employment 3yrs FTE + Overhead: $315,000 Cost Savings with Assent: $197,000 Note: Costs can range based on setup complexity, required customizations, integration, number of suppliers, business units and scope of the project.
8 WHAT ARE THE BENEFITS OF A TURN KEY PROGRAM? 1. Leverage Huge Economies of Scale Leverage Public Data, A Compliance Relationships? 2. L everage Expert Staff without the Full Time Cost Expert Regulatory Knowledge is needed for building a compliance process, intermitted questions once its implemented and for review. May not need someone at this pay grade full time. 3. L everage Data Collection Hire High Level Staff to do data collection? Hire more resources for data collection? OR Use a combination of automation and on demand support. 4. Best in Class Software Built By Compliance Managers For Compliance Managers.
9 WHY IS COMPLIANCE BECOMING MORE MISSION CRITICAL THAN EVER? Compliance is becoming heavily associated with brand Wall Street as well as Main Street Putting Value on Compliance and Sustainability Apple and Intel Beating the Street. Share Value Up on CM and Sustainability Announcements. How Did Apple Gain 8B in Market Cap in 1 Day Through Compliance?
10 HOW ESTERLINE CHOSE COMPLIANCE AUTOMATION? Aerospace Firm 50+ Operating Locations. 4 Divisions 25+ Brands. Market Cap 3.3B Challenges: Requires centralized project to cover 50+ operating locations Heavy data collection materials & suppliers Communication with hundreds of suppliers & follow-up IT heavy Beyond the scope of current staffing and systems Start with Conflict Minerals but need to expand to REACH/RoHS Etc.
11 Strategy for Esterline: Team was formed to review process and establish go forward plan Process map established to define requirements Strategy was developed recognizing:»» Magnitude of work statement (electronic components)»» Variance in data bases»» Workload at business units Conducted a RFP 8 Service Providers.»» See Ebook Selecting A Compliance Vendor 101. t s d Assen n a e n li ce. Ester Complian This is n o N n to Reactio
12 HOW DID BONTON GET TO 100% CONFLICT MINERAL COMPLIANCE IN 8 WEEKS? 1 Internal Team Member Working on the Assent Platform + Assent Support Team. ~300 Suppliers Used The Assent Automated Portal/Wizard to Collect Data Automated responses ~50% Remaining suppliers Follow Up Phone Call. Resend Data Request 90% within 7 weeks 100% Complete within 8 weeks. Data Analysis and Maintenance Phase. Total Costs Less Than Cost of a New FTE.
13 COMPLIANCE LIFE CYCLE MANAGEMENT LIFECYCLE BEGIN S In the design phase you want to ensure you are selecting compliant parts Post design the proto type might go to a test LAB Compliance in 2014 has 4-5 phases. Do you have a platform to manage everything? The need arises to inspect, audit factories to ensure compliance standards being met. Once the item is in production: New Social Laws Might Emerge? Conflict Minerals, Responsible Sourcing
14 WHAT S NEXT? Decide if Compliance Automation could be a fit Demo Compliance Automation Solutions Depending on Complexity RFP?
15 QUESTIONS? Please submit your questions in writing using the Q&A tool along the top menu tool bar. Any questions not addressed during the Q&A portion of this webinar will be addressed in private correspondence after the webinar and in an FAQ document posted to the Assent Compliance Webinars page. Thanks for attending! WANT A DEMO? Matt.Whitteker@AssentCompliance.com Info@AssentCompliance.com
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