7 Steps to Build a Strong Compliance Program: Why It’s Essential in 2025

Let’s be honest—compliance is not the most exciting topic in the world. But if you’re in manufacturing, electronics, or any industry where regulatory oversight is tightening, ignoring compliance is like ignoring a check engine light on your car. Eventually, it will cost you—big time.

Regulations like REACH, RoHS, Ca Prop 65 and TSCA PFAS section 8(a)(7) are not just bureaucratic hurdles. They exist to ensure product safety, environmental protection, and ethical sourcing. More than that, they are critical to building trust with your customers, avoiding supply chain disruptions, and maintaining market access. In today’s landscape, a robust compliance program is no longer optional—it’s a competitive advantage.

The Compliance Wake-Up Call

In my conversations with industry leaders, we often hear the same sentiment: “We’ve managed compliance reactively for years, why change now?” The answer is simple—because the stakes have never been higher.

• Fines and Market Bans: The European Chemicals Agency (ECHA) and other regulatory bodies are increasing enforcement. Non-compliance can result in product recalls, import bans, and multi-million-dollar fines.
• Customer Expectations: Major OEMs are cracking down on supplier compliance. If you can’t provide full material disclosure, you risk losing contracts to competitors who can.
• Supply Chain Disruptions: Without clear oversight, you may not even realize a critical component in your BOM contains restricted substances—until it’s too late.

The reality is, waiting until a compliance issue arises is a dangerous game. A strong compliance program is proactive, not reactive.

Key Components of a Robust Compliance Program

So what does a well-structured compliance program look like? Here are the foundational pillars:

1. Know Your Regulations

Different industries and regions have different requirements. The first step is to stay informed about global regulations that impact your industry & product lines. REACH, RoHS, TSCA PFAS section 8(a)(7), Ca Prop 65, SCIP Eu WFD, Conflict Minerals—each has its own complexities and reporting obligations. Regularly monitoring updates is crucial. ------- Download the eBook by clicking on the link

2. Clean Up Your BOM

A messy Bill of Materials (BOM) is a compliance nightmare. Before you can assess regulatory risks, you need a clear understanding of what materials and substances are in your products. Standardizing part numbers, eliminating outdated components, and ensuring accurate supplier data is a must.

3. Strengthen Supplier Communication

Your compliance program is only as good as your weakest supplier. You need a structured process for collecting compliance data—and that means going beyond one-time surveys.

• Establish a compliance agreement for new suppliers.
• Set expectations for regular data updates.
• Engage with suppliers to ensure they understand reporting obligations.

4. Build a Compliance Team

Compliance isn’t just a side task for procurement, quality or engineering—it requires a dedicated team. This includes:

• Regulatory specialists who track evolving laws.
• Data analysts who validate supplier declarations.
• Engineering support to assess risk at the design phase & look for alternate parts.

Some companies build internal teams, while others leverage third-party compliance data experts. The key is ensuring someone owns compliance full-time.

5. Test for Compliance Gaps

Supplier declarations are a starting point, but verification is essential. Lab testing for restricted substances ensures compliance beyond paperwork. For high-risk materials/parts, proactive testing prevents surprises down the road.

6. Reporting and Labeling Requirements

Once you’ve gathered and validated your data, the next step is ensuring proper reporting and labeling. Depending on the regulation, this could mean:

• Submitting data to platforms like CDX, SCIP (for EU REACH Substances of Very High Concern).
• Adding Prop 65 Warnings labels on applicable products.
• Providing Compliance Declarations, Full Material Disclosure, Consolidated CMRT etc. to customers.

7. Ongoing Monitoring

Regulatory compliance isn’t a one-and-done task. New substances get added to restricted lists, exemptions expire, and customer requirements evolve. A successful compliance program includes:

• Regular compliance audits.
• A systematic review of supplier data.
• Active tracking of regulatory updates to stay ahead.

Compliance as a Competitive Advantage

Companies that invest in compliance don’t just avoid fines—they win business. When customers know they can rely on you for accurate compliance data, you become a preferred supplier. You also reduce the risk of last-minute redesigns, supply chain disruptions, and reputational damage.

A well-executed compliance program is not just about risk mitigation—it’s about building resilience.

So the question isn’t, “Do we need a compliance program?”

The real question is, “How strong is ours compared to our competitors?”

Final Thoughts

If your compliance program is based on spreadsheets and last-minute scrambles, it’s time for an upgrade.

Start by evaluating where you stand—do you have a dedicated team? Are you proactively monitoring regulations? Is supplier communication structured and reliable? If not, now is the time to put these foundational pieces in place.

Learn about Enhancing Data Coverage for Compliance—because having a compliance program is only as good as the data you collect.