5 minute read
Raising the awareness of compliance
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?
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 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 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: 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?
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
allows a better and easier flow of product through the warehouse or store, with more space for new products rather than returns.
Internally too, having confidence in DG management frees up personnel to focus more on their operational goals, and also opens up time for innovation and a concentration on quality, safety and meeting increasing sustainability goals. In-house compliance expertise means that new product development can be aligned with regulatory standards, rather than having to reverse engineer after the event.
HCB: How far can digital systems and automated hazmat software go in improving standards and making the compliance role more attractive to new entrants?
RF: Despite modern technology advancements throughout the supply chain, many companies still rely on manual processes to handle DG compliance. This is highly inefficient and doesn’t enable DG pros to focus on more strategic, value-adding tasks.
DG shipping software can help streamline DG management operations by providing instant, accurate, validated and compliant DG shipping documentation. By taking steps to ensure compliance – for labels, packaging, documentation, permits and more – companies can reduce the risk of stopped shipments and help ensure deliveries reach customers on time.
Not only does investing in DG software help avoid fines and keep goods moving, it helps organisations maintain lean operations, better manage inventory, and identify more costeffective solutions to ensure they’re not spending more than necessary on packaging or protection of goods.
Using DG shipping technology helps give organisations more complete and accurate master data. Having access to detailed information about a product’s components, makeup, dimensions and origins, not only helps those directly responsible for DG management but also manufacturing, procurement along with 3PLs, carriers, customers and other supply chain partners.
However, while technology can significantly improve DG shipping operations, even the latest and greatest solution won’t work to its fullest potential without complete and accurate data or proper training for employees. Organisations must remember that using technology to automate processes is just a step, and it’s critical to invest in the people and processes in order to derive maximum value from that technology.
HCB: What can Labelmaster offer to help the process?
RF: Global brands to smaller companies partner with Labelmaster to help them confidently and cost-effectively manage the complexity of the dangerous goods and hazardous materials shipping process.
We have globally expanded our team of dangerous goods experts to assist companies across the world with regulatory questions, site assessments, customised training, parts classification and process improvements across multiple operating locations and supply chain partners.
We have added an immersive, 3D experience to our online training modules that enables students to practice what they learned in a virtual warehouse world, increasing confidence and skill retention.
Our technology - Dangerous Goods Information System (DGIS) - helps automate and streamline the DG shipping by providing instant, accurate and compliant DG shipping documentation while validating shipments against the latest regulations. DGIS can also help improve efficiency and reduce costs with features like electronic signatures, templates, training schedule management, parts inventory, and diagrams for packing and markings.
DGIS can integrate with a TMS, WMS or ERP, providing organisations with the functionality they need in a familiar interface, while supporting compliance throughout the entire supply chain.
This conversation will continue at Labelmaster’s annual DG Symposium, which this year will be held online in virtual form, beginning on 13 September; registration is free of charge via DGExchange.com. More information on Labelmaster’s range of products, systems and services can be found at www.labelmaster.com.
