Ongoing supply chain disruptions, including port congestion, capacity constraints, labor shortages, security breaches and more, are pushing organizations to reevaluate their operations in order to improve performance, reduce risk and remain competitive. Due to the complexity and risks involved, having the right information, technology and processes in place is key when it comes to moving dangerous goods.
Dangerous goods (DG) shipping regulations can be complex and vary by country and transportation mode, making it challenging for shippers to ensure that all shipments are compliant. This is especially true for organizations with multiple locations or business units, which often have different shipping processes or partners, and manage many variables and priorities across the supply chain.
With the dozens of tasks required to put a DG item compliantly into transport, significant inefficiencies, errors and delays can happen across each supply chain partner. Because of the risk involved, organizations must recognize the impacts that DG compliance (or noncompliance) can have in the following areas of the business:
Supply chain. Incorrect shipping labels, incomplete documentation or other compliance-related errors can impact customer service. Stalled shipments result in late deliveries and customer dissatisfaction or penalties.
Finance. Costs resulting from noncompliance can add up – from fees related to stopped shipments, increased insurance liability following an accident, and the hidden costs of inefficient operations.
Brand. DG have the potential to impact public safety and the environment and, as a result, brand equity. When there’s an incident involving DG, this can create negative sentiment, not just in the press but, most importantly, among customers, consumers and other business partners.
In today’s challenging and highly competitive business environment, organizations need reliable, affordable and repeatable technology that can support DG compliance throughout the supply chain. Business benefits include:
Driving efficiencies. DG software can automate and streamline the shipping process by producing documentation and validating shipments, labels and packaging against the latest regulations or unique carrier requirements. By combining clean and correct product and shipping information with DG software, shippers can reduce the time it takes to process a shipment, as well as significantly reduce rejected shipments.
Maintaining smooth operations. Compliance challenges can slow part of the shipping process. By taking steps to efficiently and consistently ensure compliance for shipment labels, packaging, documentation and permits, companies can help to ensure that deliveries reach customers on time.
Regulating costs. Investing in automated DG shipment validation helps ensure that shipments are compliant before they leave their facilities. By increasing compliant shipments, companies can better manage costs and avoid fines for noncompliance and even penalties from customers for late deliveries.
Improving transparency. DG shipping technology requires organizations to have more complete and accurate master data. Detailed information about a product’s components, dimensions and origins helps those directly responsible for DG management, manufacturing and procurement, as well as third-party logistics providers, carriers, customers and other supply chain partners.
Outlook:
The safe and compliant shipping and handling of DG will become increasingly difficult as supply chains accelerate, new products are introduced, and regulations evolve. To stay competitive and compliant, organizations must invest in DG compliance technology, have access to complete and accurate information, and implement efficient and transparent processes. Otherwise, they put their operational performance, competitive agility, reputation and bottom line at risk.
Mario Sagastume is vice president of software and customer success with Labelmaster.
