Managing Dangerous Goods in the Value Chain

Objective

After completing this lesson, you will be able to manage Dangerous Goods in the Value Chain.

Dangerous Goods in the Value Chain

Dangerous Goods in the Value Chain

The dangerous goods process in the value chain encompasses the systematic management of hazardous materials throughout their entire journey from procurement to final delivery. This process ensures compliance with international regulations while maintaining safety standards across all business operations involving dangerous goods.

For each compliance-relevant product added to a sales order, a sales contract or sales quotation, it must be verified if the product is classified as a dangerous good. If so, it must be checked, if the product can be transported.

If the product is not classified or if the transport is not allowed, this check can result in a sales order block. The determination is based on the dangerous goods regulations that are applicable for the transport between departure and destination countries/regions.

If a dangerous goods assessment is not yet completed, a corresponding request to the product stewardship department or the dangerous goods specialists is created.

Applicable Process Steps

To sum up, the general process steps are:

  • Creating a sales order

  • Performing a dangerous goods check

  • Triggering a dangerous goods assessment where it is missing

  • Creating an outbound delivery

  • Perform dangerous goods check in delivery

  • Include dangerous goods information on delivery note and picking list

Benefits

The benefits of Dangerous Goods in the value chain include:

  • Mitigating compliance risks with up-to-date information integrated into the value chain.

  • Integrating dangerous goods checks in the selling process.

  • Informing the product steward and dangerous goods specialists about new countries where transport is required.

Note

This process flow is covered in Scope Item: 3G8- Manage Dangerous Goods in the Value Chain.

How to manage Dangerous Goods in the Value Chain

Introduction

This scenario supports a dangerous goods transport permissibility check that is carried out in business documents within the value chain.

The system checks if the transport of the product is allowed. If the product is not classified or if transport is not allowed, this check can result in a block. If a dangerous goods assessment is not yet completed, a corresponding request is created.

Task 1: Create Sales Order with a Dangerous Good with Transport Allowed

In this first scenario Internal Sales Representative Kate creates a sales order for a finished good. The system carries out a dangerous goods check to verify if the transport is allowed. The result of the dangerous goods check is positive and the status for the dangerous goods check in the sales order header is set accordingly.

Task 2: Process Compliance Request

The transport of this dangerous good is allowed, but the marketability status issues a warning message. Therefore Otto, Product Stewardship Specialist for Product Compliance, has to perform a marketability assessment. At the end of this process a delivery for the sales order can be created.

Task 3: Create a Delivery, Carry Out Picking and Post Goods Issues

Based on the sales order, Shipping Specialist Tom creates the outbound delivery.

With the delivery number he carries out the picking process. It involves taking goods from a storage location and staging the right quantity in a picking area where the goods are prepared for shipping. In addition, he also posts the goods issues for the delivery.

Task 4: Create Sales Order with a Dangerous Good with Transport Allowed with Restrictions

In this second scenario Internal Sales Representative Kate creates a sales order for a finished good. The system carries out a dangerous goods check to verify if the transport is allowed. The dangerous goods check ends with a warning and the status for the dangerous goods check in the sales order header is set accordingly. However, the delivery for this sales order can be created.

Task 5: Analyze Sales Order Fulfillment Monitor

To get a deeper insight, Kate analyzes existing sales documents based on the given issues types. Dangerous Goods issues are visualized in the Delivery Block inside the Sales Orders.

Task 6: Create a Delivery, Carry Out Picking and Post Goods Issues

The dangerous goods check ended with a warning and the system set the dangerous goods status on item level and header level accordingly. Therefore Shipping Specialist Tom is able to create an outbound delivery.

Tom also carries out the picking process. It involves taking goods from a storage location and staging the right quantity in a picking area where the goods are prepared for shipping. In addition, he also posts the goods issues for the delivery.

Now you should have an impression of "how to manage Dangerous Goods in the Value Chain".

Summary

After completing this lesson, you are able to:

  • manage Dangerous Goods in the Value Chain
  • understand the necessary process
  • create a Sales Order for a Dangerous Good where a transport is allowed
  • create a Sales Order for a Dangerous Good where a transport is restricted
  • perform the necessary Delivery