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HCB: There does seem to be a lack of awareness on the part of the C-Suite of the importance of proper compliance in DG transport. How can this be addressed?
THE DRIVING SEAT COMPLIANCE • LABELMASTER’S ANNUAL DG CONFIDENCE SURVEY, PRODUCED WITH HCB AND IATA, REGULARLY IDENTIFIES FAILINGS IN COMPLIANCE. WHAT CAN BE DONE TO CHANGE THAT? THE PROBLEMS FACING dangerous goods professionals in meeting their responsibilities have been well charted, not least through the annual survey conducted by Labelmaster in partnership with HCB and IATA. It is time that action was taken to change that pattern. HCB spoke to Robert Finn, Labelmaster’s vice-president, to talk through the problem. HCB: We have seen over several years that many DG professionals struggle to do their job effectively. Is this because of a lack of training or a lack of support?
non-compliance) can have on operational and financial performance and, as a result, don’t invest in the necessary DG resources, technology and training. This creates several key gaps within organisations’ processes and infrastructure that make maintaining a compliant and reliable hazmat supply chain challenging. These include: • Inadequate technology and a reliance on manual processes that are unable to meet current supply chain challenges • Insufficient DG training that doesn’t add real business value and is not adaptive to
RF: The extent to which a company’s leadership views DG management as a strategic supply chain lever directly impacts its level of investment in this area. Unfortunately, many senior leaders don’t understand the impact compliance (and
future needs • Incomplete/inaccurate master data that hinders moving new products effectively and efficiently across the supply chain • A lack of visibility across the supply chain • Ineffective processes in areas such as reverse logistics.
HCB MONTHLY | JULY/AUGUST 2021
RF: Companies invest in areas they believe will grow their business profitably and DG professionals need to find a way to change the conversation within their organisation. The willingness to fund technology and training related to hazmat often starts at the top levels of the organisation. But, for many, there is lack of awareness among company leadership regarding what those responsible for compliance actually do and how a forward-thinking hazmat shipping function can drive business growth. Organisations need to think of compliance beyond simply a regulatory necessity or mandate and recognise how it can be a competitive advantage that improves supply chain performance. When managed expertly, DG management can enable incremental revenue and share gain, risk reduction and better customer service. DG pros need to redefine their business value from a cost centre to a profit centre, a customer acquisition lever, and even a competitive differentiator. HCB: Do you have any examples of the revenue opportunities of improved compliance? RF: There are plenty. Firstly, better compliance means fewer fines and penalties and fewer rejected or snagged shipments, increasing customer satisfaction and allowing the organisation to out-perform its competitors’ on-time delivery rate. That in itself can drive more business. Similarly, it
LABELMASTER’S ROBERT FINN (OPPOSITE) SAYS A LACK OF INVESTMENT IN COMPLIANCE CAN SERIOUSLY AFFECT COMMERCIAL PERFORMANCE - AND NOT JUST THROUGH THE SPECTRE OF PENALTIES AND DELAYED SHIPMENTS
