[ID] => 10161
[post_author] => 34
[post_date] => 2018-09-26 10:47:29
[post_date_gmt] => 2018-09-26 09:47:29
[post_content] => Maintaining a smooth supply chain is critical in today’s highly competitive market. Yet despite the importance (and overall impact) of compliance on the supply chain, dangerous goods (DG) professionals find it increasingly challenging to do their jobs effectively and efficiently. This was evident in the 2018 Global Dangerous Goods Confidence Outlook survey, conducted by Labelmaster, IATA and Hazardous Cargo Bulletin to gain insights into how organisations around the world approach DG shipping and handling, and the challenges they face.
It’s no secret that growing volumes and types of DG, along with more extensive and complex regulations, have made moving DG in a safe, secure and compliant manner increasingly difficult. In fact:
- 51 per cent of respondents said they find it challenging to keep up with the latest regulations,
- 15 per cent were not confident that they can ensure DG regulatory compliance across their entire organisation, and 13 per cent were unsure, and
- 58 per cent feel that even if they follow the regulations perfectly there is a chance their shipments will be stopped.
When asked to rank their greatest challenge to compliance, 28 per cent cited budget constraints but 21 per cent said that their company leadership is not aware of the risks involved in their operations. Ineffective training and lack of technology were other common problems.
As we saw in the 2017 survey, those responsible for DG face an uphill battle – not only in meeting evolving regulations, but also in overcoming inadequate infrastructure and training.
BEHIND THE CURVE
Being able to stay up-to-date with the latest regulations and then abide by them requires the proper training, infrastructure and processes. While most DG professionals believe their companies are able to stay abreast of the latest regulations and prepare employees appropriately, there is still a significant population where improvement is needed.
One key area that can help is technology. There is no denying that technology is critical to the supply chain and significantly improves efficiency, speed and accuracy. But even with a number of technology resources available, more than one-quarter of DG professionals are still doing everything manually.
Reliance on manual processes is time-consuming, significantly increases the chance of human error and makes it harder to maintain consistency across an organisation. But just because a company uses some sort of technology for compliance, it does not mean they have the infrastructure they really need. This was evident in the survey responses, as 15 per cent believe their company’s ability to quickly adapt to regulatory and supply chain changes is “lagging behind the industry” and only 21 per cent believe it is “advanced – ahead of the industry.”
Furthermore, the need for improvement extends to training as well. One-quarter of respondents feel their company’s training does not adequately prepare people within the organisation to comply with DG shipping regulations. In many cases, the scope of those being trained needs to be expanded. In fact, 67 per cent of respondents believe DG training should be extended to other departments across their company.
Companies that view compliance as a competitive advantage are more likely to use DG-specific technology, feel they have the technological support that quickly adapts to regulatory and supply chain changes, and have higher confidence in overall operations. Those that adhere to minimum requirements are more likely to be challenged by ineffective training and a lack of awareness on the part of company leadership, and are much less confident in their ability to ensure compliance across the organisation.
Respondents were asked how they would allocate extra budget, should it be made available. More effective training was the top target, cited by 42 per cent, with 29 per cent asking for more technology.
Unfortunately, obtaining the budget and resources to fuel these areas is not easy – and most likely requires buy-in from executive leadership. But how do you get that buy-in? It starts with changing the conversation around DG management.
CHANGE THE CONVERSATION
Changing the conversation means reframing the overall view of DG management within an organisation. This begins with DG professionals quantitatively demonstrating how their compliance programme can reduce costs and increase revenue to make a positive contribution to the company’s bottom line. Simply put, it is defining the total value of compliance, taking into account three factors relevant to any business engaged in DG transport:
- The cost of maintaining compliance throughout the supply chain, such as expenses for people, processes, compliance products, supportive software and technology, reporting, training and management
- The cost of non-compliance due to errors and lapses such as civil penalties, carrier refusal and delays, fines, remediation and higher insurance costs
- The opportunities of higher-level compliance-enabling differentiation, revenue growth and faster cash flows, such as implementing new products that are aligned with regulatory standards from day one, faster product delivery to customers, increased brand equity, and the ability to offer emerging or popular products that others may not.
The total value framework provides a real business case for adequately investing resources to support compliance. Company buy-in enables DG pros to invest in solutions that will provide a meaningful impact, such as technology to increase compliance, save time and ship faster; and training that adds real business value. Survey responses spotlighted the fact that for many companies training is sometimes the only resource available to build and maintain compliance. This puts a tremendous amount of pressure on training to be effective. To make your training efforts pay off, use a training resource that has DG expertise; make sure your content is up-to-date; integrate your company’s unique policies, products and suppliers into the training; and establish objective, quantitative metrics that show cost savings or revenue generation.
DG pros recognise the value in resources, technology and training that support compliance, but still aren’t getting the support they need. Compliance will only become more challenging, so it is critical for them to redefine how their organisation views compliance in order to get the support and investment they need.
To learn more about the total value of compliance, download a TVC technical brief and schedule a free assessment, visit www.labelmaster.com/tvc
. To read the full survey report, visit www.labelmaster.com/dg-compliance-outlook
[post_title] => Compliance: Vote of confidence
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => compliance-vote-confidence
[post_modified] => 2018-09-25 12:52:24
[post_modified_gmt] => 2018-09-25 11:52:24
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=10161
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