When customs flagged the rejected consignment, the investigation revealed that the issue went far beyond a simple documentation error. Multiple layer of non-compliance were identified:

1. Incorrect UN packaging code used (4G instead of required 1H2)

2. Missing Class 6.1 toxic subsidiary risk labels

3. Damaged outer crate, making mandatory labels unreadable

4. Incorrect Emergency Response Guide (ERG) Code in the shipper's declaration

5. Supplier lacked internal hazmat compliance capability

6. Repackaging process was outsourced and slow, adding additional delays

Because nickel powder is both flammable and toxic, even a single missing label voids customs clearance.

Compounding the issue, the freight partner reported a 2-3 week backlog for certified hazmat shipments. With only one approved supplier, no buffer stock, and limited track and trace visibility, the client has no way to prevent or absorb disruptions.

The risk matrix showed critical vulnerabilities:

1. Single supplier dependency

2. Zero safety stock

3. Outdated procurement SOPs

4. No formal hazmat verification process

5. No live visibility into supplier or logistics lead times

All of these gaps directly threatened high priority R&D schedules and long term OEM trust.

AEM designed and developed a two-phase strategy: rapid crisis recovery followed by long term stabilization.

Compliance Poka-Yoke System (Error-Proofing Mechanism)

We introduced a Hazmat Compliance Checklist, a fixed method control covering all mandatory requirements for customs and international hazmat transport.

How it works:

• Supplier fills the checklist before dispatch.

• Procurement team verifies each field for correctness.

• Only after full compliance confirmation is shipment approval issued.

• Any missing or incorrect entry triggers immediate corerction.

This eliminated documentation & packaging errors and ensured every shipment was 'customs-ready' before leaving the supplier.

SOP Redesign and Rapid Training

AEM rewrote the SOPs for: Inbound inspections, Hazmat documentation verification, Emergency sourcing, Repackaging requirements, and Buffer stock management.

Cross functional teams (procurement, QC, lab, operations) were trained in hazmat roles, responsibilities, and regulatory requirements.

Supply Chain Risk Reduction

• Onboarded a secondary supplier, reducing dependency risk by 80%

• Implemented a 2 week stock policy to absoeb any future disruptions

• Introduced quarterly supplier audits focusing on compliance readiness

Real Time Visibility Tools

We developed: Live inventory dashboards, Material depletion forecating, shipment status tracking, lead time variance monitoring. This enabled proactive planning instead of reactive crisis management.

AEM Consultancy (Analyze . Eliminate . Maximize) transformed a high risk, compliance vulnerable supply chain into a robust, predictable, and regulation-aligned hazmat logistics framework. By implementing error proof controls, redesigning SOPs, building internal capability, diversifying supplier base, and ensuring safety stock, the client now operates without disruption and with complete regulatory readiness.

The client regained operational stability, protected OEM relationships, reduced compliance risks, and fortified its long-term research delivery capability, setting a new benchmark for safe and resilient hazmat supply management in aerospace R&D.