About ESCATEC
The ESCATEC Group designs and manufactures electronics, electro-mechanical, and box build solutions, with a global customer base largely consisting of major original equipment manufacturer (OEM) brands. Since its founding in 1974, ESCATEC has offered customers the specialized solutions they require — from initial design and development (D&D) all the way to mass manufacturing and after-sales services. The Group’s current production footprint encompasses multiple production facilities in Malaysia, the UK, and the Czech Republic, and a facility in Switzerland for advanced D&D, micro-opto-electro-mechanical systems (MOEMS), and advanced electronics.
ESCATEC’s commitment to highly ethical and sustainable business practices makes it a partner of choice for industry-leading OEMs worldwide. For each innovation and solution that ESCATEC provides, the Group makes sure practices are fully compliant with the highest standards.
ESCATEC’s Compliance Landscape
- The EU RoHS Directive
- Conflict minerals
- SCIP database
- Toxic Substances Control Act (TSCA)
- Full material disclosures
- Global Automotive Declarable Substances List (GADSL)
- REACH Regulation
- California Proposition 65
Introduction
In 2018, when ESCATEC expanded to a major new facility in Penang, Malaysia, and experienced exponential business growth, the Group knew it needed to consolidate its international compliance programs into one solution. ESCATEC’s in-house compliance team recognized that with recent new business opportunities turning into long-term partnerships, they would need to continue to address a wide range of complex requirements. The need to transfer vast amounts of supply chain data into a more robust supply chain sustainability management system was crucial. To meet its evolving product compliance obligations, ESCATEC decided to engage Assent for help expanding its existing compliance program.
Modernizing Data Compliance Practices
In 2017, ESCATEC began its search for a versatile, comprehensive supply chain sustainability management solution. ESCATEC selected Assent because of its:
- Accessible subject matter experts
- 24/7 support, including multilingual options
- User-friendly Supplier Portal
- Ability to generate live reports
ESCATEC by the Numbers
- Over 3,000 employees
- 500 suppliers in Malaysia
- 250 suppliers in Switzerland
- 750 suppliers in the UK and Czech Republic
- 10,000 parts in Malaysia
- 4,500 parts in Switzerland
- 18,500 parts in the UK and Czech Republic
Boosting Supplier Response Rates & Enhancing Data Quality
Shortly after implementation, Assent surveyed ESCATEC’s suppliers using the Conflict Minerals Reporting Template (CMRT), reviewing collected data against the Responsible Minerals Initiative (RMI) member smelter data. Assent then supported ESCATEC as it conducted a risk analysis for tin, tungsten, tantalum, and gold (3TGs) in its supply chain as part of its due diligence activities.
By collecting REACH and RoHS declarations from across ESCATEC’s supply chain, Assent also helped the Group boost supplier response rates and obtain deeper, more defensible data. Assent also provided ESCATEC’s vendors 24/7, multilingual support to ensure they had the tools and knowledge needed to submit the right data.
As REACH and RoHS requirements continue to evolve, Assent is helping ESCATEC meet its supply chain sustainability needs more efficiently. Thanks to Assent’s training and subject matter expertise, suppliers now understand ESCATEC’s requirements, and the Group can demonstrate compliance with less effort.
“Many of our suppliers are actually distributors, so when we request compliance information from them, they need to pass it on to the actual manufacturers,” ESCATEC’s Manager of Corporate Regulatory Compliance Benjamin Khor explains. “Assent makes all that easier. Our suppliers simply open an email and follow the links to know what is required of them. They can easily pass this on to the manufacturers.”
Reducing Completion Time by 70 Percent
Today, whenever ESCATEC initiates a new project that has specified compliance requirements, it contacts suppliers to request affirmation that they can comply. ESCATEC then runs supplier information through Assent to determine whether it should accept each affirmation.
Since working with Assent, ESCATEC has achieved annual compliance with Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. “Different smelter and refinery engagements can result in conflict mineral risks,” Benjamin explains. “Assent helps us manage our risk and keeps us compliant with this law.”
Recent metrics show that the relationship is working very well. “Since teaming up with Assent, we’ve seen a 70% reduction in completion time and improvement in accuracy,” ESCATEC reports. “We were also able to scale back the resources needed to meet our customers’ requirements.”
Improvements at a Glance
- 70% reduction in completion time
- 70% improvement in accuracy
- No headcount increase in compliance, despite business growth and compliance demands
Working with Assent has strengthened ESCATEC’s reputation as a leading electronics manufacturing services provider: “At least once a week, I get requests to produce REACH or RoHS reports on our products,” says Benjamin. “Our customers are always impressed at how we can produce reports as per their requested datelines and have advised that other suppliers can take two to three months to provide a response.”
Many contract manufacturers require their customers to retrieve compliance information from suppliers. ESCATEC, however, does it very efficiently through Assent. ESCATEC believes that this ability to provide even more value for the customer gives the Group an advantage in winning new business.
“I started my job at ESCATEC with the mindset that compliance is not only meant to reduce risk — it should help us win new customers and continue to meet the needs of our existing ones. With Assent helping to provide this service, we become a much more attractive and capable partner to potential customers. We are entering new market sectors with confidence, all because of the compliance support we are getting from Assent.”
Making More Confident Business Decisions
Working with Assent has given ESCATEC a strategic mindset toward compliance, and Board members can make decisions about expansion or investments with greater confidence. “With Assent on our side, our executives can focus on priorities and strategies,” ESCATEC reports.
Addressing potential compliance issues used to be time-consuming, but with Assent, operations staff know they can bring issues to management’s attention and see speedy resolutions.
As for Benjamin and his team, they are the only part of the business that is not growing. “ESCATEC’s management has given me approval for additional headcount each of the past four years, but I have never used it because we have Assent. Whenever a program is expanding and I am getting overwhelmed with tasks, Assent’s program managers are always there to provide support. And everyone we deal with at Assent has the same attitude: easy to work with and ready to put our needs first.”
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