Chemical regulations such as the REACH regulation and the new rules for limiting PFAS (Per- and Polyfluoroalkyl Substances) present enormous challenges for mid-size industrial companies. These substances are found in many products and production processes — from seals in machinery to medical devices and packaging. With the planned tightening of the EU regulation, it is essential for companies to carefully examine their supply chains for PFAS and identify alternative materials and suppliers in time to ensure compliance and minimize risks.

The European Chemicals Agency (ECHA) and the EU Commission are planning a significant restriction on the use of PFAS, with a possible decision on comprehensive bans by 2025. While some companies may see the new requirements as a constraint, there is a proactive strategy that can strengthen procurement as a driving force for resilience and competitiveness.

‍

Background on PFAS and REACH

‍

The REACH regulation aims to reduce the impact of hazardous chemicals on the environment and human health. This includes expanding the list of Substances of Very High Concern (SVHC), which is updated semi-annually by ECHA. These regulations are binding for companies across the entire supply chain — from manufacturers to processors to end users. The planned PFAS restriction could affect up to 10,000 substances and would therefore have far-reaching implications for all companies using fluorinated polymers and similar chemicals in production.

‍

Challenges and Opportunities for Mid-Size Procurement

‍

The upcoming PFAS regulation affects numerous industries, particularly companies in machinery and plant engineering that manufacture hydraulic components, seals, and valves. Procurement is tasked with reviewing the entire supply chain for PFAS usage and finding alternatives. However, this brings both challenges and opportunities.

‍

• Supplier and Material Assessment: To mitigate potential risks, companies need to know the composition of their materials and check for PFAS-containing components. This requires deep supply chain transparency, which depends on data access and reliable supplier information.

‍

• Compliance and Risk Management: Continuous adaptation to REACH and PFAS requirements is essential in procurement. Structured compliance management can help avoid unexpected costs and ensure adherence to legal requirements.

‍

• Cost Management and Alternatives: Since substitute materials are often more expensive and difficult to source, new pricing strategies must be developed and alternative materials and suppliers must be qualified.

‍
‍

Proactive Steps to Strengthen the Supply Chain

‍

To successfully navigate the upcoming PFAS regulations, targeted preparation is essential. Here are six steps that can support procurement in adapting to new requirements:

‍

1. Supply Chain Analysis and Transparency: A thorough supply chain analysis that includes identification of PFAS-containing products and suppliers lays the foundation for compliant sourcing.
‍

2. Risk Assessment and Prioritization: Critical materials and suppliers should be identified and prioritized early to develop targeted measures for the most significant risks.
‍

3. Identifying Alternatives: Procurement should proactively search for PFAS-free alternatives and initiate conversations with potential new suppliers.
‍

4. Contract and Compliance Adjustments: Supplier contracts should be updated to include PFAS compliance requirements and clauses for future regulatory changes.
‍

5. Internal Process Optimization and Training: The procurement team should be trained on the new regulations and internal processes should be aligned with the new requirements.
‍

6. Leveraging Digital Tools: A Supplier Relationship Management (SRM) system helps automate compliance and risk assessment while keeping supplier data up to date.

‍

The Role of Digital Solutions: How an SRM System Can Help

‍

Digital Supplier Relationship Management tools make it easier to maintain oversight and continuously adapt to REACH and PFAS requirements. An SRM system provides complete transparency of suppliers and items across the supply chain and reduces administrative effort through automated surveys and reminders. By segmenting the supplier base by PFAS relevance and compliance status, targeted risk mitigation measures and REACH conformity assurance can be implemented.

‍

Conclusion and Outlook

‍

The tightened PFAS regulations present challenges but also opportunities for mid-size companies. Through early preparation and the use of digital solutions, procurement can become the decisive function for the long-term resilience and competitiveness of the business. Adapting to REACH and PFAS requirements may initially involve effort, but ultimately strengthens compliance and risk management.

Companies that take strategic action now are best positioned to respond flexibly to future regulatory changes.

‍

Download the detailed guide to derive actionable recommendations for your business!

The increasing regulations around PFAS and REACH could pose major challenges for many companies. For mid-size industrial companies, however, procurement offers the opportunity to gain an advantage through proactive action and strategic foresight. Those who examine their supply chains for PFAS today, identify alternative materials, and minimize compliance risks early not only strengthen resilience but also secure long-term competitiveness. An effective SRM system can help.