CDX for the Heavy Equipment and Machinery Industries
The global trade volume in the heavy equipment and machinery industries in 2012 and 2013 was approximately 1 trillion dollars with the United States and China being the largest single markets. Germany is the world´s largest exporter (16.3%), followed by China (11.7%) and the US (11.4%). A variety of materials are used in these products produced in these industries, and many of the materials require material compliance reporting.
Material Compliance is defined as the effort to conform to national and international legal requirements related to a company's products and materials. This is especially important to export-oriented companies.
Today, many material regulations exist globally that affect virtually every heavy equipment and machinery company, and this list continues to grow. Example regulations include:
- Conflict Minerals - US Dodd-Frank Act
- Chemicals - EU REACH SVHC with Annex XIV and Annex XVII, California Prop 65
- Hazardous Substances - EU RoHS, China RoHS, ELV, Biphenyls, Aerospace Environmental Group IAEG AD-DSL
Remaining current on regulation changes is critical. For example, the EU Court of Justice decision on REACH Article 33 ("Once an article, always an article") is very important to this industry as it requires thresholds to be reported as related to the subcomponent or material in which the REACH substances are present and not as related to the presence in the final product.
DXC's Compliance Data Exchange (CDX) facilitates the secure cross-company and standardized collection of material data in supply chains. Thus CDX enables you to:
- Comply with regulations to avoid penalties,
- Avoid compensation claims and product recalls,
- Increase market share and reputation.
CDX is a ready to use service. Companies can immediately start collecting materials information from their suppliers. Recognizing that material compliance is a dynamic area with ongoing additions to the hazardous material lists, there is no need to wait for the ideal list of substances to be reported. With CDX it's easy to start collecting data now and to run updates when necessary.
The REACH Article 33 decision is already reflected within CDX, further showing the outstanding functionality of CDX.
Contact DXC today to learn how DXC can help your company gain benefits while reducing your costs.
The Association of Equipment Manufacturers (AEM) and its member companies, after evaluating several solutions for chemical substance compliance in the market, selected CDX services as the preferred platform for AEM’s chemical substance compliance program. In early 2019 the AEM member companies decided to implement a CDX Pilot program and invited their selected supplier companies to participate.
The purpose of the CDX Pilot program has been to provide an opportunity for selected AEM member companies and their suppliers to use CDX in a low volume production capacity and obtain real world experience and practical lessons learned. Since the start of the CDX Pilot program several AEM members have become more actively involved and have defined several important best practices.
No GADSL in CDX and agreement on declaration scope:
Leveraging IMDS experience and previously collected product declarations is beneficial, yet there are some key differences that require modified methodologies. As an example: in IMDS, the detail level is always 100 % declaration, and the declarable substances are always GADSL. In CDX, various industries accept multiple detail levels, and are concerned with a wider range of regulations. The CDX ‘MDS Request’ permits clients to communicate their specific requirements all in one IT solution.
AEM Specific DSL: There should be an AEM industries specific substance declaration list to facilitate alignment across AEM on regulatory compliances. Leveraging GADSL and tailoring it to AEM Industries.
Agreement within the pilot participants that 100 % declaration is desired. A partial declaration may be permitted while the supply chain develops 100 % declaration capability.
Clients have expectations regarding supplier submissions, therefore, a data guide is necessary to help supplier understand what customers expect them to do. An AEM Data Guide Rules and Guidelines; first version of this document has been made available (see the link on the right-hand side bar).
CDX Rules and Guidelines for AEM Industries
This document describes the basic requirements for the creation of CDX Material Datasheets (MDSs) describing components, semi-finished components (aka semi-components) and materials. Following these requirements will support the entry of high quality and consistent substance content data which is needed to fulfill applicable legal obligations. These requirements are agreed to by all equipment manufacturers participating in the CDX System and define harmonized rules valid throughout the supply chain. Following the rules and guidelines will support an efficient transfer of material data.