Growing classes and volumes of dangerous goods (DG), along with more complex and extensive regulations, have made moving DG in a safe, secure and compliant manner increasingly difficult. In fact, a recent survey by hazmat shipping company Labelmaster Inc. found that 51% of DG professionals around the world find it challenging to keep up with the latest regulations, and 15% were not confident they can ensure DG regulatory compliance across their organization (13% were unsure).
Staying up to date and abiding by the latest rules requires proper infrastructure, processes and training. Unfortunately, many organizations say they need improvements in these key areas:
Twenty-eight percent of DG professionals are still doing everything manually. Furthermore, 15% believe their company infrastructure’s ability to quickly adapt to regulatory and supply-chain changes is “lagging behind the industry.” Sixty-five percent said it is “current, but needs updating,” and 21% believe it is “advanced — ahead of the industry.”
Twenty-five percent of respondents feel their company’s training does not adequately prepare people within the organization to comply with DG shipping regulations.
The challenges these organizations face became especially clear amid the COVID-19 pandemic, as companies experienced a range of difficulties in keeping goods compliant and in motion. According to DG professionals:
The top supply-chain management challenges were receiving goods on time (82%), receiving complete and timely information from partners (75%) and lack of carrier availability (73%).
The top DG management challenges were re-certification of employees (69%), training employees on regulations (68%) and changes in rules related to the pandemic (57%).
These shortcomings must be addressed — specifically those related to data access and team member training, according to survey respondents. Eighty-eight percent said “accurate and complete DG shipment data” is important to the future of their organization, while 74% said the same about “more effective remote DG training.”
As DG organizations move forward, they should focus on the following areas when creating a path to better supply-chain management:
Remote training. Understand the value and shortcomings of your current training, including what changes are needed to deliver effective training to company personnel quickly and remotely.
Shared data. Identify if timely and accurate DG data is collected, and how it’s shared both internally and with supply-chain partners.
Outlook
The COVID-19 pandemic spotlighted areas of DG management that must be addressed within many organizations. Shipping DG will only become more difficult as supply chains become increasingly complex and regulations continue to evolve. In order to ensure regulatory compliance and maintain a smooth, resilient supply chain — especially when facing disruptions — companies must invest in adequate compliance infrastructure, technology and training.
Pia Jala is vice president of consulting at Labelmaster.
