Page 18


ManageMent www.us-tech.com


How Battery Shippers Benefit from a Compliance Assessment


By Mike Pagel, Senior Consultant, Labelmaster A


nyone who ships lithium bat- teries or battery-powered prod- ucts knows that compliant bat-


tery shipping is a constant challenge. Yet, shippers who undertake the ef- forts to improve their compliance of- ten discover improvements in other areas as well. As part of Labelmaster’s role to


counsel companies on hazardous ma- terials transport and product regula- tory support, the company recently conducted a compliance assessment for a global robotics company when the firm took its shipping operations in-house. The goal was to enhance the company’s dangerous goods com- pliance procedures. In the process, Labelmaster also helped to optimize the company’s overall supply chain. In fact, such a consulting


process can benefit any manufactur- er that ships large lithium batteries,


including those involved in heavy- duty power tools, large toys, electric vehicles, hoverboards, drones, med- ical equipment, electric vehicles, en- ergy storage, and general industrial machinery. Not surprisingly, lithium bat-


teries were a hot topic at the recent IATA Dangerous Goods Board meet- ing in Miami, Florida. If exploding hoverboards and state-of-the-art cell- phones were not enough to focus the public’s attention on portable elec- tronic devices and the lithium batter- ies that make them dangerous, the U.S. and U.K.’s selective ban on pas- sengers carrying them in airplane cabins has definitely had an impact. In the past, batteries were


shipped under certain exceptions that meant no shipping papers were required. With recent changes, both to the regulations and to carrier-spe-


cific requirements, more battery shipments are moving from “except- ed” to “fully-regulated” shipments. Today’s ever-changing, strin-


gent regulations governing lithium batteries shipped by air require the right labels, packaging, marks, and a complete DG Shipper’s Declaration, or DGD, form for dangerous goods. The DGD is a regulated document that is very tightly controlled and must be completed correctly or a package can get stopped in transport and result in an FAA violation. With many such compliance is-


sues and the high level of detail nec- essary to ship lithium batteries, com- panies should consider a compliance assessment.


One Day, Countless Insights The one-day compliance assess-


ment is similar to a U.S. Department of Transportation (DOT) inspection, but without the fear of getting slapped with a civil penalty at the end of the day. The assessment covers every


step in an operation — from receiving and stocking to outbound shipping — highlighting compliance gaps that might be vulnerable to enforcement actions. Such an audit goes well be- yond simply navigating regulations and requirements. It includes the sharing of industry best practices that showcase how other companies find efficiencies, which can help streamline operations. During the day, documentation


that includes SOPs, training records and shipper papers are reviewed. Discussions are held with employees to identify their roles. At the end of the day, a debriefing meeting out- lines immediate needs and a long- term roadmap toward achieving a compliant and efficient outbound shipping process. A follow-up written report is provided within a week. Recommendations pinpoint both


compliance issues to address and methods to enhance efficiencies. For example, attaching dangerous goods information to product numbers does not only ensure compliant packaging and labeling; it also removes a level of complexity to streamline processes for outbound people.


Insufficient Dangerous Goods Training


One common deficiency often


found during a compliance assessment is a lack of appropriate training. It is the first item a DOT inspector will ask about, and most shippers do not real- ize the extent to which it is needed. For example, a recent survey of


shippers reinforced the need for proper industry-wide training. Less than half of those polled —47 percent — agree that their employees are properly trained. In addition, a mere 51 percent do not think senior man- agement understands the impor- tance of hazmat training. And, while many pros were


clearly unhappy with their organiza- tions’ commitment to DG training, they see the problem as wide rang- ing. Only 47 percent agree that the overall supply chain understands the importance of hazmat training. It is not only compliance that


training should address. Proper dan- gerous goods training ensures that employees understand the reasons behind the regulations and the con- sequences of non-compliance. It helps them become more familiar with their functions — why they do what they do — which pays off in higher productivity and fewer errors throughout a supply chain. It is important to select a train-


ing company that can customize a program based on the specific com- pliance assessment. Training tai- lored to a company’s particular needs will provide exactly what employees need to know. It also engages them and leads to a lot of relevant ques- tions and productive dialogue.


High Level of Detail Every compliance assessment


includes a written report citing com- pliance gaps and making recommen- dations for dangerous goods program improvements. Companies tell us they want to read all of the details — even those that may be worrisome or alarming.


However, these executives note


that it is the report’s executive sum- mary that helps them in a significant way to highlight their concerns for their C-suite. Without buy-in from upper management, it is difficult to make meaningful supply chain im- provements. Conducting a compliance as-


sessment to implement a well-devel- oped shipping strategy can reduce risk and potential exposure to regu- latory fines, address challenges re- lated to customer returns and re- verse logistics, optimize the many authorized regulatory exceptions to avoid unnecessary costs, improve customer satisfaction and enhance


company profits. Contact: Labelmaster, 5724


North Pulaski Road, Chicago, IL 60646 % 773-478-0900 E-mail: orders@labelmaster.com Web: www.labelmaster.com r


June, 2017


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88