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Environmental regulations pose supply chain challenge: as the rapid obsolescence of computer and home entertainment products causes an increase in consumer electronics waste, U.S.-based manufacturers and component suppliers will have to develop new manufacturing and inventory management processes.

New European Union (EU) rules on the use of hazardous substances in electronic equipment could pose major logistics headaches for U.S.-based manufacturers and component suppliers. The electronics industry not only has to develop new manufacturing processes, but also will have to keep better track of components and temporarily manage separate streams of compliant and noncompliant inventory.

"It is much harder than it sounds to track the contents of every product," says Judith Glazer, director in Hewlett-Packard's process development, supply chain services, and product processes organization. "It's a daunting challenge."

The rules are a reaction to a growing electronics ...

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