CryoGas International Sample Magazine

Focus on the Customer / Helium Market Report June 2015 Vol. 53, No. 6

Reporting on the business and technologies driving today’s industrial gas industry Published twelve times a year by gasworld Publishing LLC

FEATURE ARTICLES Topping the News Solving the US Helium Issue Requires More Information

3

The Baird/CryoGas Industrial Distributor Survey 1Q15 Industrial Gas and Hardgoods Survey Summary of Results

24

The 2015 Worldwide Helium Market Abundant Helium Supply. . . for Now

By Maura D. Garvey

28

Do You Hear What Your Customer is Saying?

By Jonda Vance with Jeff Kearns

32

Six Ways to Reduce Mileage

By William Salter

34

Where There’s Smoke, Is There Always Fire?

Not Necessarily in the Case of Transporting Cryogenics A Special Safety Report from GenOx Transportation, Inc.

36

Financial Supply Chain Efficiencies — A Chain Reaction

By Dianna Nuernberger

40

Preparing for the 2015 GHS Deadline

By Deborah Grant

42

5

Finance and Economics

Balancing US Energy Imports and Exports

Projections in EIA’s Annual Energy Outlook 2015 (AEO2015) (eia.gov/forecasts/ AEO/) show the potential to eliminate net US energy imports sometime between 2020 and 2030. This reflects changes in both supply and demand, as continued growth in oil and natural gas production and the use of renewables combine with demand-side efficiencies to moderate demand growth. The United States has been a net importer of energy since the 1950s.

The United States is currently an exporter of petroleum products and coal, but an importer of natural gas and crude oil. When the energy content of these fuels is combined, the United States in 2014 imported 23.3 quadrillion British thermal units (Btu) of energy and exported 12.2 quadrillion Btu. Projections in EIA’s recently released AEO2015 show that, on an energy content basis, US energy imports and exports could 10

Durable Goods Manufacturing Slips According to a recent release of the US Bureau of Economic Analysis, durable goods manufacturing, the sector into which many industrial gases are supplied, increased only 0.3 percent in the fourth quarter of 2014 following an increase of 7.0 percent in 3Q14.

By comparison, nondurable goods increased 9.7 percent in 4Q14, after decreasing 6.6 percent in 3Q14 — a reversal of fortunes. Overall, 15 of 22 industry groups contributed to the 2.2 percent increase in real GDP in 4Q14.

Percent change from preceding period

tomers for the last 50 years,” said Kevin McEniry, CEO at nexAir. “We are looking forward to working with our new team members to enhance our product and service offerings for all of our customers in this area.”

The acquisition doubles nexAir’s Georgia footprint and furthers its reach into the northwestern portion of the state, granting new customers access to the company’s seasoned industry expertise.

In addition to its knowledge of industrial and specialty gases and welding supplies, nexAir brings expertise in automation trends and the latest welding procedures.

“We are excited to continue servicing the welding industry in northwest Georgia as part of the nexAir team,” said Larry Pogue, President of M&A Welding Supply Co. “The combined expertise and service offerings of our two companies will help ensure our customers continue to receive the products, equipment, and supplies they need to operate efficiently.”

“Welding is a fast-growing and strategic segment of the nexAir portfolio, and we’re eager to add these four locations to our service area,” said McEniry. “As an important segment of our customers’ business strategies, we are happy to bring some of the most advanced welding equipment and supplies in the country to both current and new customers.”

Real GDP and Real Value Added by Sector 8.0 6/0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 2013:IV

2014:I

GDP

2014:II

Private Goods

2014:III

Private Services

2014:IV

Government

Source: U.S. Bureau of Economic Analysis

Electronics Growth Accelerates Following two lethargic years of low growth and some setbacks, worldwide sales of optoelectronics, sensors, actuators, and discrete semiconductors (O-S-D) regained strength in 2014 and collectively increased nine percent to reach an all-time high of $63.8 billion after rising just one percent in 2012 and 2013, according to IC Insights’ “2015 O-S-D Report — A Market Analysis and Forecast for Optoelectronics, Sensors/ Actuators, and Discretes.” Modest gains in the global economy, steady increases in electronic systems production, and higher unit demand in 2014 drove a strong recovery in discretes along with substantial improvements in sensors/actuators and greater growth in optoelectronics.

Each of the three O-S-D market segments are forecast to increase at or above their long-term annual growth rates in 2015 and 2016 as the global economy continues to gradually improve and major new end-use systems applications boost sales in some of the largest product categories of optoelectronics, sensors/actuators, and discretes. After a modest slowdown in 2017, due to the next anticipated economic downturn, all three O-S-D market segments are expected to continue reaching record-high sales in 2018 and 2019, based on the five-year forecast in the new 10th edition of IC Insights’ O-S-D Report.

O-S-D Segments Pull Out of Two-Year Slump Optoelectronics

Sensors/Actuators

Discretes

16%

6%

8%

9%

8% 5% 1%

2011

-7% 2012

11% 6%

10% 7%

12% 5%

9% 8%

0%

-5% 2013

2014

2015F

2016F

Source: IC Insights’ 2015 O-S-D Report June 2015 – CryoGas International

The Baird/CryoGas Industrial Distributor Survey 1Q15 Industrial Gas & Hardgoods Survey

Conducted in Partnership with CryoGas International

Robert W. Baird and Company (Baird) (rwbaird.com), in partnership with CryoGas International, presents this summary of our most recent quarterly Industrial Gas & Hardgoods Survey. This report looks at responses to questions on revenue, pricing, and hardgoods inventories from 500+ independent distributors and manufacturers with combined annual revenue of approximately $100 billion. It also includes trends from Baird’s broader survey of all distributors, referred to as “Overall,” providing a benchmark for comparing Gases- and Welding Hardgoods-related products with other industrial supply categories. Additionally, this survey includes targeted questions for the Industrial Gas and Welding Hardgoods distributor. This quarter we asked about distributors’ planned level of investment, participation in buying groups, and activity in helium markets.

Trends

Revenue Trajectory

As noted, average y/y revenue growth in 1Q15 was +5.5% in Hardgoods and +2.6% in Gases with Combined revenue growth at +4.1%. This outpaced the +2.7% growth across the broader industrial distribution market. The relative strength in Hardgoods appears to be in part due to more stable demand for automation-related equipment. But industrial trends appear to be choppy overall with some respondents seeing record growth, others recording modest results, and some reporting flat to slowing sales due to oil prices.

The 4Q14 Baird survey, conducted while the US was enjoying a relatively mild early winter, yielded a very positive + 5.5% Combined revenue outlook for Gases and Hardgoods for 1Q15. As we now know, that winter ended with record setting snowfalls and cold temperatures in many parts of the country resulting in a shortfall in revenue expectations. Combined revenues for 1Q15 registered at only +4.1%. There is optimism looking forward. Survey respondents anticipating Gases revenue to recover to +4.4% and Hardgoods improving to +6.4%, for a Combined growth of +5.4 percent in 2Q15. The overall market it projected to grow by +3.9% next quarter.

For the full year 2015, respondents forecast revenue growth of +5.9% in Gases and +5.2% in Hardgoods. This compares to +3.6% expected growth across the broader industrial distribution market.

Versus the prior quarter, this forecast is revised down slightly as shown in Figure 3.

24

1Q15 Overall Revenue, Pricing, and Forecasts Industrial Gases & Hardgoods Distributors vs. All Distributors Industrial Gas Distributors Industrial Gas

Overall*

Hardgoods

1Q15 Revenue

+2.6%

+5.5%

+2.7%

1Q15 Pricing

+2.2%

+1.9%

+0.8%

2Q15 Revenue Forecast

+4.4%

+6.4%

+3.9%

2015 Revenue Forecast

+5.9%

+5.2%

+3.6%

*All Distributors in the survey, including Industrial Gases & Hardgoods Distributors

Figure 1

Source: Robert W. Baird and Company

4Q14 Overall Revenue, Pricing, and Forecasts Industrial Gases & Hardgoods Distributors vs. All Distributors Industrial Gas Distributors Industrial Gas

Overall*

Hardgoods

4Q14 Revenue

+6.1%

+4.5%

+4.4%

4Q14 Pricing

+3.5%

+1.8%

+1.0%

1Q15 Revenue Forecast

+6.4%

+4.5%

+3.7%

2015 Revenue Forecast

+6.3%

+6.0%

+4.9%

*All Distributors in the survey, including Industrial Gases & Hardgoods Distributors

Figure 2

Source: Robert W. Baird and Company

2015 Revenue Outlook 15% Gases 5.9%

10% Y/Y Change

Figure 1 presents the 1Q15 year/year (y/y) change for revenue, pricing, and forecasts for Industrial Gases & Hardgoods Distributors versus All Distributors (Overall) in the Baird survey. This is followed by Figure 2, which presents similar statistics for 4Q14.

In 4Q14, for the first time in nearly a year, revenue for Gases outpaced Hardgoods. This quarter we are back to Hardgoods revenues doing better than Gases. Respondents indicated that average y/y revenue growth in 1Q15 was +5.5% (vs. +4.5% in 4Q14) in Hardgoods but only +2.6% (vs. +6.1% in 4Q14) in Gases. Combined revenue growth for Gases and Hardgoods in 1Q15 was +4.1%, which outpaced the +2.7% growth across the broader industrial distribution market. Combined revenue growth was down from 4Q14 levels (+4.1% in 1Q15 vs. +5.3% in 4Q14), reflecting softer demand in some markets at the beginning of the year.

In 1Q15 respondents saw pricing trends weaken for Gases (+2.2% 1Q15 vs. +3.5% 4Q14) but remain relatively stable for Hardgoods (+1.9% 1Q15 vs. +1.8% 4Q14). This compares favorably to +0.8% pricing across the broader industrial distribution market. Overall, survey participants reported that New Year price increases were implemented without issue.

5% 0%

E

15

20

-5%

Hardgoods 5.2%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15E 3Q15E 4Q15E Gases Hardgoods Overall Note Overall = All Distributors, including Industrial Gases & Hardgoods Distributors

Figure 3

Source: Robert W. Baird and Company

June 2015 – CryoGas International

The Baird/CryoGas Industrial Distributor Survey Investments, Purchasing Practices, and Helium

Distributor Change in Investment Plans for 2015 Decreased 7% Increased 60% Flat 33%

Figure 7

Source: Robert W. Baird and Company

Savings Gained by Buying Group Participation

Percent of Respondents

60% 50% 40% 30% 20% 10% 0%

0-5%

Figure 8

6-10%

11-15%

>15%

Source: Robert W. Baird and Company

Market Impacted by Better Helium Availability 90% 80%

Percent of Respondents

Each Baird Quarterly Survey includes a question(s) relating specifically to the Industrial Gases and Welding Hardgoods business.

This month we asked three.

The first question related to investments. We asked, “How have your investment plans changed for 2015? As a follow up, we asked “How have your customers’ investment plans changed?”

As shown in Figure 7, a majority of respondent, 60%, reported that their investments plans had increased in the first quarter of this year, which is encouraging news. A third (33%) said plans remained unchanged and only 7% reported a decrease in planned investments.

By contrast, customers were not as optimistic, with 47% percent reporting investment plans increased (still a good number), 40% reporting no change in planned investments, and 13% decreasing their planned investments. It will be interesting to watch how the distributor/customer investments play out for the remainder of the year.

Our second question related to purchasing practices. We asked those surveyed, “Are you part of a buying group?” The overwhelming majority of respondents — 93% — answered in the affirmative, lending credibility to the old adage that there is power in numbers. The responses to “What savings have you gained by being part of the group over the past year?” were more varied as shown in Figure 8. Nearly 55% of those surveyed gained only 5% or less in savings as a result of being part of a group. About a third saved between 6–10%. And under 10% of respondents gained 11–15% in savings as a result of group purchases.

Our third question related to the improving helium market (see “The 2015 Worldwide Helium Market,” on page 28, and “Solving the US Helium Issue Requires More Information,” on page 3). We asked, “Has the widening availability of helium had an impact on your business? If yes, where has that impact been?”

The respondents were nearly evenly split with 47% reporting an impact and 53% responding that greater availability had little to no impact on their business.

Interestingly, as shown in Figure 9, the balloon industry had the most to gain from more abundant helium supply, which is in keeping with reports that this was the sector that felt the pinch of short supply the most over the past few years. Over 80% of respondents reported a positive impact on their balloon business.

The welding industry, which searches for substitutes for helium when its supply is tight, also gained from helium’s greater availability with over 70% of distributors reporting a positive impact for that sector. The market for helium in research sectors also regained some strength. Impact to medical markets was negligible. These results are in keeping with how helium tends to be allocated to sectors where helium is essential and/or fewer helium substitutes are available (medical and research) as compared to those where helium is considered less essential.

70% 60% 50% 40% 30% 20% 10% 0% Balloons

Figure 9

26

Welding

Research

Medical

Source: Robert W. Baird and Company

June 2015 – CryoGas International

Do You Hear What Your Customer Is Saying?

Do You Hear What Your Customer Is Saying?

By Jonda Vance with Jeff Kearns If you ask people in almost any organization, they will tell you they know what their customers want and that they do a very good job of delivering on those wants. Yet do we ever get beyond basic requirements? All customers want good quality, but what does that mean to them?

And customers want on-time delivery, but again — how well do we know their definition of “timely”? If we understand what customers are expecting from us, then why do organizations continue to be plagued with customer complaints and having to correct mistakes? We find that listening to and hearing what the customers are telling us are often two very different things. Listening to the voice of the customer is not as easy as one might think.

The voice of the customer (VoC) is a common term used today to describe the painstaking process of capturing customers’ expectations, preferences, and aversions. It is often referred to by organizations, but few ever clearly define its meaning. Specifically, VoC is an unambiguous process that produces a detailed set of customer wants and needs, organized into a ranked structure, and then prioritized in terms of relative importance and satisfaction with current products and services. It is a systematic approach for identifying and incorporating the needs of customers from actual customer experiences. It allows an organization to understand the customers’ real perception of their products and services, how well they deliver on promises to customers, and to utilize this information to improve products, services, and the processes involved in creating them.

Unfortunately, many organizations define customer requirements by their own internal definition. For example, a distributor or supplier’s definition of quality might be error-free, waste-free products and services. But do we know what error-free and waste-free is by the customer’s definition?

It might include ease of use, accessibility, or durability. On-time delivery for a distributor or supplier may be getting trucks out at a specific time, but for a customer it may be 32

an exact time of delivery, having no wait or cue time, or even having products delivered to an exact location or drop-off point. If we don’t know what outcomes customers want to achieve by working with us, a long-term sustainable relationship may be a moving target.

Customer feedback has become increasingly important to everyone in a business, from the customer service representative to the CEO. But many businesses still take an unceremonious, traditional approach to gathering customer feedback through customer surveys, comment cards, and even random letters and emails that are collected in various departments, but never combined. Though valuable, these methods are no longer enough. Organizations need a more comprehensive and formal process in place to systematically capture, aggregate, and manage, as well as act on customer feedback across the entire enterprise that ensures that the feedback gets integrated throughout the organization.

There are many ways to gather customer feedback besides surveys. These include focus groups, tradeshows, social media, claims or credit, and even unsolicited comments.

But getting to that voice of the customer is not as quick and easy as many believe. According to Endeavor Management’s 2012 whitepaper, “The Top 10 VoC Best Practices,” eight of ten executives believe their companies lose sales each year because of “failure to create engaged customers.” This continues to be of high concern today.

Gas and Supply, one of the largest independent distributors of packaged gases and welding supplies in the United States, can attest to that. Gas and Supply has always

been customer focused and in 2010 they began a new customer approach using the company’s Continuous Improvement process, called Gas and Supply Excellence (GAS-Ex). GAS-Ex addresses customer related issues and is driven by the company’s desire to improve customer value by better understanding the factors that lead to their customers’ satisfaction and dissatisfaction levels.

Gas and Supply’s first formal team charged with beginning this process focused on issues such as customer retention and product offerings. While these are very important aspects of the customer relationship, the determination of the level of customer satisfaction came primarily from a sales perspective, and so the team missed several critical customer touchpoints.

Customers interact through different touch points, with different members of staff, buy different products and services, and have different post-purchase experiences. VoC takes a unified view, looking across the entire customer journey (all touch points in the value stream), regardless of channel or type of product or service they buy. Gas and Supply discovered they were missing feedback from critical touch points from these customer interactions.

Every customer interaction — from the time you take the order until the time you collect the cash — is important. Organizations need a way to monitor how effectively they handle these interactions. Mapping out the customer journey to really understand how customers experience their interactions with the organization can help you put the processes in place to monitor, measure, and report on those experiences at all key touchpoints. That’s why many companies do post-interaction surveys — asking customers for feedback on recent interactions.

So Gas and Supply decided to split their efforts resulting in a two-team, cross-functional approach. One team focused on existing customer issues and solutions. The other was to focus on how to identify and collect feedback to prevent customer issues June 2015 – CryoGas International

Where There’s Smoke, Is There Always Fire?

Where There’s Smoke, Is There Always Fire?

Not Necessarily in the Case of Transporting Cryogenics A Special Safety Report from GenOx Transportation, Inc.

We have all seen it — tank trailers on the highway with smoke coming out of them.

But is it really smoke? All too often, vapor released from tank trailers transporting liquefied nitrogen and other atmospheric gases is mistaken for smoke. This can result in an unnecessary call-out of emergency responders.

These call-outs are unfair. They consume time better spent elsewhere, tie up emergency resources, and come at a significant financial cost to both transportation companies and responders. After talking to and providing a training program for local responders, Kevin Mathews, President and CEO of GenOx Transportation, Inc., decided it was time to offer this training to a broader audience throughout Texas and Louisiana.

Was it necessary? The training, which GenOx held at its headquarters in La Porte, Texas, was originally planned for 25 at36

tendees. One hundred and thirty people showed up. Clearly it was time to provide training to emergency responders that enabled them to differentiate between smoke and atmospheric gases.

So where do these vapors that are mistaken for smoke come from? Vapors are vented as liquefied atmospheric gases warm up in cryogenic tank trailers. It is a normal occurrence in these highly specialized cargo tanks that are used to transport a wide range of cryogenic liquids including argon, oxygen, and carbon dioxide. In addition to atmospheric gases, cryogenic tank trailers are beginning to haul larger volumes of liquefied natural gas (LNG).

The lack of familiarity with these gases can lead to confusion when the vehicles transporting them are encountered, and the confusion is not just among the general public. Of all the vehicles they encounter, commercial vehicle enforcement

officials and emergency responders may be least familiar with the vehicles used to transport cryogenic products.

Kenneth P. Utz, GenOx Transportation, Vice-President of Safety, explains that the training program held in Texas certainly filled an important need in the enforcement and responder community: “Our attendees were enthusiastic and they had a lot of questions. One of our objectives was to build relationships and lines of communication with the responder and enforcement community, and I think we did that.”

The one-day program included a detailed review of the federal regulations that apply to cryogenic cargo tanks and presentations on the characteristics of liquefied gases. Various cryogenic trailers from the GenOx Transportation fleet were on display and attendees had plenty of time to take a close look at the equipment. They also had a chance to tour the June 2015 – CryoGas International

Financial Supply Chain Efficiencies – A Chain Reaction

Financial Supply Chain Efficiencies – A Chain Reaction

By Dianna Nuernberger It’s no secret that distributors are continually searching for ways to increase efficiencies within their supply chains. But now, some industry leaders are looking for even smarter ways to gain a competitive edge — and the financial supply chain is where they are looking.

Although the processes that contribute to a financial supply chain are vast, a simple look at integrated credit card solutions reveals significant opportunities in front counter sales, recurring cylinder rent and leases, and in eCommerce transactions.

It is here — in the examination of these particular processes — that distributors can find those rich opportunities for improved cash flow and business automation.

The Inefficiency of Cash and Charge Transactions

The sheer nature of cash and charge sales brings an inherent amount of inefficiency to a distributor’s financial supply chain.

Consider the scenario of a customer who comes into a storefront to purchase products using cash.

The front counter person handling the transaction must create a “cash order” in their ERP (enterprise resource planning) system, put the cash in the register, make change for the customer, and make certain that the register remains in balance. At the end of the day, the cash in the register needs to be counted and balanced to the cash sales report and then taken to the bank for deposit.

While cash sales offer the advantage of eliminating costs associated with printing and mailing invoices, the distributor may relinquish valuable business insight on cash orders by missing the chance to capture specific customer sales data associated with that individual. They also run the risk of theft or human error occurring in the cash transaction. The mere process of counting cash, balancing the register, and driving to the bank is time-consuming and costly.

Charge sales bring a similar set of challenges. If a customer wants the item 40

Credit card payments do just that, they reduce the touch points — that need for human intervention. Consequently, they also reduce the chance of manual errors and provide more operational automation.

Front Counter Orders

“charged to their account,” the front counter staff creates a “charge order.” But even if a charge order provides the opportunity to capture specific customer sales data, it still carries the burden of the “charge process,” including the physical processing, printing and mailing of invoices, and collection of payments. Although many variables enter into this equation, a simple Google search reveals aggregated costs for sending physical invoices are upwards of $3.00/ invoice.

In addition, the distributor must now wait for the customer to receive the invoice and mail a check payment back. Once the payment is received, the process of applying payments and taking deposits to the bank is reintroduced.

Both of these circumstances involve physical tasks that require error-free, human intervention in order for the transactions to be completed successfully. There is a better way.

Improving Financial Flows with Integrated Credit Card Systems

Integrated credit card systems lead to a more efficient financial flow with the added benefit of improved operational efficiency. When a distributor can leverage built-in integration within their ERP system, the number of touch points in a process is reduced.

A distributor can reduce the manual steps needed in an order process when they set up a customer as an “auto pay” account.

Auto pay accounts work by tying the customer’s account to their credit card for any charges incurred. So, a previously cumbersome cash or charge process takes on a very different feel.

Now, when an auto pay customer comes into the storefront to purchase goods, the order is processed and the credit card on their account is charged immediately for the sale.

There is no need to count change back to the customer like in a cash sale. There is no need to send an invoice out — because once posted, the credit card payment will offset the customer’s A/R (accounts receivable).

The time spent balancing the cash register is less because there are more customers set up as auto pay accounts. The distributor can also capture specific customer sales data without the burden of the “charge process.”

And, the customer can have multiple credit cards on account to pay different types of A/R. For example, they may wish to have their cylinder rent charged to their Visa, while other purchases are charged to their MasterCard.

For every auto pay account a distributor sets up, the associated costs for labor, printing of invoices, envelopes, and postage are eliminated. This also means that the amount of time between purchase and payment is significantly reduced, therefore improving the cash flow for this process. In addition, the distributor has the option of using new EMV (Europay, MasterCard, and Visa) credit card technology, which shifts the liability for “card present” fraudulent transactions away from them, and significantly reduces financial exposure.

June 2015 – CryoGas International

Preparing for the 2015 GHS Deadline

Preparing for the 2015 GHS Deadline

By Deborah Grant As the impending OSHA Hazard Communication Standard (HCS) deadline of June 15, 2015 approaches in the US, businesses are faced with the urgent need to define their strategy for the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). There are also a multitude of additional complexities confronting companies as they are asked to comply with more international regulations and customer requirements than ever before. Here are some key questions related to these challenges that organizations need to ask in moving forward with a GHS initiative. Answers to these questions and challenges exist in the form of Enterprise Labeling Solutions, which offer an efficient and flexible way to meet the needs of GHS compliance, while also addressing a wide range of customer and regulatory requirements.

How Does My Company Plan to Deal with GHS?

This is an obvious question, since HCS and GHS regulations and standards have been in the making for a very long time, but now a hard and fast deadline is looming for accurately labeling products containing thousands of different hazardous chemicals.

Companies are facing more complexity in chemical labeling with risk of heavy penalties for non-compliance. Many companies have not spent enough time carefully reevaluating their overall labeling strategy to make it the best it can possibly be in a comprehensive, holistic way. Equally important is this question — does your labeling process include the ability to deal with the complexity that extends well beyond the 2015 HCS and GHS requirements?

Enterprise Labeling Solutions are designed to meet the rigors of GHS labeling.

They allow companies to leverage their source of truth for label data, design labels to meet the most complex requirements, enable data driven labeling to support different label sizes and variations, and empower companies to perform mission-critical, high volume printing. The best of these solutions stress the importance of labeling best practices and offer domain experience in man42

aging the deployment of labeling solutions on a global basis.

How Can We Access The Labeling Data We Need From Our Systems?

With so many different types of data needed to create compliant labeling, organizations often find that multiple labeling systems with redundant data sources take root over time. SDS information, regulatory information, consistent branding, product identification, multiple languages, pictograms, and more need to be included on labels. But with different labeling solutions scattered throughout the supply chain, inability to meet regulatory requirements, labeling errors, relabeling, and failure to address customer needs appropriately can lead to costly fines and, most importantly, loss of business.

Getting the right data on labels is critical.

Enterprise Labeling Solutions are designed to drive your labeling directly from your source of truth for label data. Whether regulatory data is sourced from an SDS database or applications like SAP EHS Management, this approach provides the ability to integrate to your key data sources. Transactional data such as product information, lot and batch number, images or customer specific information can be sourced from content management or ERP systems like SAP or Oracle. This level of integration enables dynamic data-driven labeling, maximizes flexibility, and ensures accuracy without replication of data. Regulatory compliance, increased time and cost savings, plus quick response to market needs are the result.

Is There a Way to Manage the Complexity of Different Products?

One of the major considerations in meeting GHS requirements is the number of possible permutations in labeling. This means differently sized labels with different amounts of printing “real estate.” In addition to GHS-compliant attributes, proper information needs to be correctly represented on available label space along with additional regional regulatory data, and customer and branding specifications.

Enterprise Labeling offers unmatched

design capabilities that allow you to create any size or shape of label required, with out-of-box support for GHS pictograms.

Some Enterprise Labeling Solutions allow for sophisticated field and label logic that supports the ability to determine label content based on available white space on the label. The power of a built-in rules engine enables label size, format and content to be determined based on transactional data.

How Will We Manage Color for GHS Label Printing?

For GHS compliance, whether by using pre-printed stock or color printers for pictograms and logos, you need a labeling solution that suits your color printing preferences. Consideration of the types of printers already installed, the cost of possible new printer acquisitions, and assessing the printing capabilities of distribution partners, resellers, and customers may also be a part of the decision making process. Managing countless variations of preprinted stock isn’t always easy, and the cost of retooling or coordinating between a wide array of printers throughout the supply chain can seem daunting as well.

For GHS labeling, pictograms require at least two colors, and Enterprise Labeling supports any approach to color printing that your organization prefers. For customers using pre-printed stock, sophisticated design capabilities can support the quality label printing results you need including the ability to leverage business logic to dynamically populate pre-printed pictograms based on transactional data. For those companies looking to embrace emerging color thermal and inkjet technologies, some Enterprise Labeling Solutions provide native print drivers for leading print technologies including Windows, PCL5c, and cab support. Regardless of your approach, Enterprise Labeling offers the native support for thousands of different print devices to fulfill your GHS labeling requirements.

Deborah Grant is Industry Marketing Manager at Loftware (loftware.com). For more information visit loftware.com/ghs/.

June 2015 – CryoGas International