In today’s world, compliance tracking is a crucial aspect of running a business. Every industry has its own set of regulations, and compliance with these regulations is mandatory. Compliance tracking refers to the process of structuring, collecting, and monitoring all relevant compliance-related data and information to ensure that there are no breaches or defects in standard business functions. In this article, we will explore the importance of compliance tracking, how it can benefit your business, and how a comprehensive system like an Enterprise Resource Planning (ERP) system can help you keep up with compliance tracking.
What is Compliance Tracking?
Compliance tracking is a process that helps businesses collect, monitor, and report on all relevant compliance-related information to ensure that they are in compliance with all the relevant regulations in their industry. Compliance tracking includes keeping track of internal and external audits and inspections, ensuring that compliance requirements are met as per the regulations of the industry, and keeping up with changes in regulations.
Compliance tracking is crucial for businesses that want to avoid hefty fines, legal fees, and damage to their reputation due to non-compliance. It is also essential for creating a safe and healthy work environment for employees and the community.
How Can a Compliance Tracking System Help Your Business?
A compliance tracking system can help your business streamline audit trails, reporting, and documentation. It can also help you focus on key standards and regulations to help monitor and report on procedures and policies. By doing this, it has core functions that can be customized to fit your business, such as policy management, compliance registers, compliance reporting and monitoring, regulatory surveillance, and site management.
With a compliance tracking system, you can get performance analytics, multi-site/location management, customized reporting, real-time alerts and notifications, database management, and easy identification of gaps in compliance. The system is accessible for workers/contractors to fill out in real-time, and it is easy to access and customize the organization of reports and registers.
Why is a Compliance Tracking System Important?
There have been more than 52,000 international regulatory changes introduced into workplaces since 2016. Workplace non-compliance has resulted in costly fines and legal fees, especially within industries such as health, finance, and construction. Having a compliance tracking system in place at your workplace will avoid legal liabilities as non-compliance will damage your business’s reputation and credit. It could also lead to major legal disputes and criminal offenses.
Compliance tracking systems are important because they help businesses comply with the ever-changing regulations and practices set and avoid penalties and unnecessary extra costs. Conducting regular audits, integrating security and privacy functions, and having a functional compliance reporting system are ensured to save your company money across all aspects.
The Benefits of Compliance Tracking for Manufacturing Businesses
Compliance tracking is essential for manufacturing businesses, as they have to comply with a wide range of regulations, including environmental protection laws, work health and safety acts, and industry-specific regulations. Here are some benefits of compliance tracking for manufacturing businesses:
1. Keep Focused on Industry-Specific Regulations
Manufacturing businesses must master their industry-specific compliance requirements. An ERP system can help businesses track exclusive industry-specific compliance requirements and ensure ongoing compliance.
2. Greater Visibility and Control
Compliance offers companies a direct view into the company’s performance against specific regulations. By tracking and meeting compliance requirements, businesses can meet and exceed industry standards in all aspects, from the quality of raw materials to superior production processes. ERP systems enable companies to house all of the crucial data safely and easily accessible for better assessment of the company’s performance against compliance requirements, as well as, to make any necessary adjustments needed.
3. Protect the Company’s Data
ERP systems act as data repositories holding massive amounts of crucial business data, including personal and financial information. Most modern and well-established ERP systems also act as the first line of defense against cybersecurity threats. These central data repository platforms come with robust and advanced security measures defending companies against any potential breaches.
4. Create a Digital Paper Trail
Manufacturing compliance tracking is all about companies being able to answer who, what, and when with confidence. An ERP system enables businesses to digitize all relevant compliance requirements while keeping a unified source of truth for everyone, including stakeholders. This not only helps companies keep up with their compliance tracking obligations but also improves reputation and transparency into its processes.
5. Mitigating Risk for Manufacturers
Regulatory compliance is often paired with risks, and non-compliance to industry-standard regulations puts companies at greater risk of compromising the health and safety of their people and surrounding. A well-integrated and automated ERP system can help manufacturing companies mitigate all general and industry-specific risks.
Compliance Tracking Software: Examples of Areas Tracked and Compliance Data Types
Compliance tracking software can help businesses in every industry comply with the relevant regulations and avoid penalties. Here are some examples of compliance areas that are tracked:
1. Workplace Safety
Each country will have some sort of Occupational Safety and Health Administration that will enforce standards for workplace safety. Under most WHS acts, employers will need to track compliance for the performance of regular safety checks, training that is being provided, and records of work-related injuries.
2. Data Security
Whilst there may be no laws enforcing data security, there can be penalties with general communication laws if non-compliant with data and personal information.
3. Human Resources
Many important areas will fall within corporate compliance. It is essential that a business complies with and reports on areas such as discrimination, harassment, and bullying, etc.
4. IT
Compliance within IT includes processes that comply with government laws but also includes internal policies that cover IT and electronic communication. Companies need to monitor and record things such as technology use data access.
How Folio3 Can Help With Compliance Tracking for the Manufacturing Industry
Implementing an ERP system can be a daunting task, and businesses need to choose the right partner for implementation. Working with Folio3, a leading ERP implementation partner in the USA, can help you explore the best ERP options available to meet your unique business needs. Our ERP implementation experts have successfully delivered hundreds of ERP implementation projects of all sizes and have in-depth knowledge and experience to offer customized solutions. Contact our sales representatives today to schedule a consultation and let our experts help you improve manufacturing compliance tracking for your business.
Conclusion
Compliance tracking is essential for businesses that want to avoid hefty fines, legal fees, and damage to their reputation due to non-compliance. A comprehensive system like an ERP system can help businesses keep up with compliance tracking while also maximizing efficiency and productivity for business operations. Implementing a compliance tracking system can save your business money, improve employee productivity, and contribute to a positive working environment and culture.