CARLSBAD, Calif., Aug. 20, 2014 /PRNewswire/ -- On the 2nd anniversary of the SEC's final rule, thousands of publicly traded companies are still scrambling to overcome obstacles to gather and authenticate a complex web of supply chain information to meet conflict minerals reporting and potential audit requirements, a leading supply chain management company announced today.
First-year reporting for conflict minerals revealed just how complex the processes and systems can be to ensure compliance with SEC rules, according to Source Intelligence, one of the few resource enterprises to effectively secure and verify reams of data for conflict minerals sourcing as well as other materials of concern. The initial grace period pertaining to audits expires at the end of December, making compliance more challenging in the years to come.
"In our analysis of SEC filings this year and through our detailed ongoing observations, far too many companies are severely lagging in getting commitments from suppliers to provide detailed information," said Jess Kraus, CEO of Source Intelligence. "This is a huge obstacle, especially since we are fast approaching a key stage in Dodd-Frank – audited and verifiable reports on source materials."
Thousands of companies were required to file first-year reports in June detailing whether their products contain tin, tungsten, tantalum or gold — dubbed "3TG" — from mines in the Democratic Republic of Congo (DRC) or adjoining countries. The U.S. and other countries have mandated conflict mineral reporting as a way to stymie the sale of these minerals to fund armed conflict in the DRC.
Kraus said uncertainty in supplier data can only be eliminated through strict data assessment, validation and certification. Source Intelligence has secured significant gains through consistent supplier interaction, a multi-language team, supplier knowledge acquisition, and proprietary analytics.
"Supply chain management requires a constant education and verification process with thousands of suppliers," Kraus said. "Suppliers, supply routes and location of source materials constantly change. Keeping tabs on these changes demand around-the-clock due diligence."
Source Intelligence® is a next generation supplier management tools company. Its SaaS platform provides companies visibility to make informed decisions about business partners and suppliers so they can offer products that meet legal, ethical and environmental standards. Source Intelligence's services minimize operational risk and improve efficiency for the world's largest brands. Source Intelligence® is headquartered in Carlsbad, CA and operates globally.
SOURCE Source Intelligence