Analyst Insight: With global supply chains enduring unprecedented challenges, organizations that want to remain competitive are constantly automation to cope with numerous systemic stress factors. Most already use software platforms for transportation, warehousing and order management, and by 2024, fully half will invest in applications that support artificial intelligence and advanced analytics. A lot of organizations, however, overlook one facet of automation that can help or hinder their success: dangerous goods automation. 

Begin with the end in mind: companies need tested, repeatable and reliable processes to streamline shipments. Shipping and handling dangerous goods (DG) — from pharmaceuticals and industrial chemicals to power tools and electric car batteries — can be complicated and time-consuming. The regulations governing the thousands of items classified as DG continually evolve, and vary depending on how and where the goods are transported. Organizations not only have to stay up to date on and understand the latest regulations, but must effectively align their operational processes to comply with those requirements. This can be especially difficult for those with multiple locations or business units, which often have different shipping processes and systems, and lack consistency across the supply chain. 

With dozens of tasks required to put a DG item into transport, including packaging, labels, documentation, carrier selection and employee training, slow compliance processes mean slower fulfillment, deliveries and overall business. This complex and often fragmented process also means there’s a good chance of significant inefficiencies, and that errors or delays could occur with one or more supply chain partners. 

Automation streamlines, consolidates and modernizes the tasks required to ship DG and provides multiple operational benefits, including:  

• Efficient shipping. More repeatable and reliable operations for every shipment, across all locations.  

• Financial advantage. Improved compliance processes that simultaneously enable organizations to operate more cost-effectively and reduce the risk of fines.  

• Risk reduction. The reduced chance of a DG-related shipping incident that could impact employee and public safety, the environment and brand reputation.  

• Resource utilization. Better staff utilization and the ability to offset labor shortages.  

Establishing more automated and consistent DG processes boils down to a few key components: 

Have the right product information. A product’s components, dimensions and origins impact every process required for safe and compliant shipping. Shippers must first know exactly what they’re shipping, then understand the regulatory requirements or restrictions for those goods. 

Ensure that the right processes are in place. Once an organization knows exactly what it’s shipping and the rules for transporting those goods, it can then define the specific processes that are needed to ship those goods safely, compliantly and efficiently. These processes should be reliable and repeatable, across all locations and supply chain partners. 

Utilize technology to enable efficient shipping processes. Automation enhances the ability to establishing correct and consistent processes. DG shipping software can help validate orders against the latest regulations, and drive efficiencies for repetitive shipments from the same or multiple locations. 

Enable proper deployment and training. Even with increased automation, training is still required for employees involved in shipping DG. A modern, tech-driven approach to hazmat training helps businesses quickly and effectively train and recertify employees — and do so remotely. 

The Outlook: Supply chain challenges aren’t new, and competitive pressure will continue to drive businesses to focus on automation and risk management. Organizations that embrace DG-specific automation strengthen their position for success in today’s fast-paced, demanding and quickly changing climate. However, when left ignored, inefficient, manual compliance processes will remain a major risk in an organization’s broader growth efforts, and can significantly slow down the entire supply chain.