Product Stewardship Maturity Model: Uncovering Risk Blind Spots
June 29th, 2018
Blind spots are dangerous for drivers, but they also present a formidable Operational Risk for Product Stewards as well.
The world of chemicals and substances is constantly changing based on ever-evolving regulations, such as we’ve seen in the European Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals—better known as REACH—regulation. The Substance Volume Tracking (SVT) requirements recently became more stringent when the threshold was lowered to 1 ton in May 2018 from the previous 100-ton threshold.
In the new report “Is Your Product Stewardship Function Creating an Operational Risk Blind Spot?” maturity level for Product Stewardship best practices was examined over eight dimensions: organizational culture; governance; workflows and processes; digitization; breadth of coverage; analysis and reporting; supply chain management; and education and awareness.
As the report states, “While traditionally a decentralized and facility-specific issue, Product Stewardship has become too complex to manage in a siloed and ad hoc manner. Today, the management of Product Stewardship requires coordination of various functions ranging from supply chain and procurement to product design and engineering.”
To help companies understand how focused their organization is regarding Product Stewardship initiatives, the report details five levels of maturity—from “tactical,” i.e., a minimalist approach to Product Stewardship, to “opportunity-focused,” which is considered the most strategic level—with examples of how a company can evaluate itself based on things like organizational culture, governance, digitization, etc. Of note, tactical companies were found to not be using analysis and reporting tools at all while opportunity-focused companies use “automation and artificial intelligence to produce deep, targeted real-time analysis and reporting.”
It’s clear that Product Stewardship is evolving rapidly; is your company keeping up with the times? You better check your blind spot first.