Conflict Minerals Compliance: Bill of Material (BOM) Approaches

This post is based on excerpts from the MetalMiner (part of the Spend Matters Network) paper: The Definitive Guide to Conflict Minerals Compliance for Manufacturers: An A–Z Guide to Conflict Minerals and Semi-Finished Metals. Spend Matters PRO Subscribers can also click to read two more detailed technology analyses on conflict minerals compliance strategy here and here.

If one could leverage opportunities to use the International Material Data System database for 3T’s/G purposes in an industry like automotive, or if a company builds their own approach tied to a BOM, PLM or similar resource-- at some point it makes sense to look at this level of detail. For companies knowing that a particular supplier has 3T’s/G in the products supplied to them, even if it represents a tiny dollar amount spent with that supplier, a survey would still be necessary.

Go-to companies here include the ERPs, PLM tool providers (e.g. PTC), and serialization and chain of custody firms (e.g. TAKE Solutions). Companies such as Supply Dynamics that specialize in helping OEMs implement raw material “demand aggregation” programs can also support Conflict Minerals identification, as well as the documentation of other part attributes (form, alloy, grade, spec, size, special process, etc.). According to Supply Dynamics, “this also creates greater visibility to assemble ‘smart RFQ’s,’ drive cost reduction through collaborative purchasing or to standardize material requirements throughout the supply chain.”

Sourcing-focused providers that bridge the PLM and sourcing gap such as Co-Exprise, FullStep and Pool4Tool may also provide a means to get at part- and component-specific materials composition information through stripping up CAD feature/part specific attribute information in software or as a service. One of the most elegant products in this market today is Endeca, which enables the “mashing up” of various types of spend, supplier, part/attribute, engineering, supply chain and related information in a single environment. Endeca is now owned by Oracle.

This post is based on excerpts from the MetalMiner (part of the Spend Matters Network) paper: The Definitive Guide to Conflict Minerals Compliance for Manufacturers: An A–Z Guide to Conflict Minerals and Semi-Finished Metals. Spend Matters PRO Subscribers can also click to read two more detailed technology analyses on conflict minerals compliance strategy here and here.

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