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) also identified the critical importance of this topic. In July 2015, AEM signed an agreement, selecting DXC's CDX service as the preferred platform to support the Association's materials regulatory compliance program. AEM and its member companies evaluated a number of Material Compliance solutions on the market. They determined that CDX was the preferred solution to meet the material compliance needs of AEM, its member companies and suppliers. The use of CDX will enable these companies to address growing compliance regulations, including REACH, RoHS, and Conflict Minerals.
AEM has a Material Compliance training initiative to prepare its members in addressing and complying with global regulatory issues. The training includes EU REACH training and Conflict Minerals training.