When you partner with a third-party logistics (3PL) provider for chemical and hazmat warehousing, there’s a lot to consider during the vetting process. Among other steps, you’ll want to take a tour of the facility, interview management and associates, and ask for referrals. However, there is one other crucial component you don’t want to overlook: the auditing process.
Part of the reason that a responsible distributor designation from the NACD carries so much weight is that – aside from the NACD’s stellar industry reputation – its audits are among the most thorough in the industry.
The NACD’s audit is a full-day process that occurs every three years. The audit is comprised of two parts.
Part one of the audit includes a review of documentation such as the warehouse’s business operating license, fire department operating permit, SOPs, certifications, and training records and protocols. Part one will also include interviews with facility management and warehouse associates.
For companies that handle chemical transportation in addition to warehousing services, it will also include a review of registration from U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA; a U.S. Department of Transportation agency).
Part two of the audit involves a tour of the hazmat warehouse in which the following inspections occur:
Again, the NACD audit is as thorough as it gets. Audits from local agencies may differ in scope.
Hazmat warehouse auditing is a vital part of your chemical logistics operations as it confirms that your products are in good hands. It also helps to assure business continuity for you and your warehousing provider as warehouses that aren’t up to snuff can receive hefty fines and penalties that can disrupt operations. As such, you’ll want to have full confidence in your 3PL’s ‘audit readiness.’ Here are 5 things to look for:
More than storage of any other type of product, chemical and hazmat warehousing is an operation best left to experts who understand the permits, licenses and certifications required for hazmat warehousing.
It is also expensive to go it alone as the infrastructure required to segregate chemicals can require millions of dollars in capital investment. Partnering with a 3PL greatly reduces the costs of the DIY method and removes the headaches involved in documentation and audits – the 3PL simply handles everything for you.
In addition to checking all of the boxes described above, some 3PLs go above and beyond when it comes to being audit ready. At Weber Logistics, for example, we have an internal compliance team that performs quarterly audits of chemical operations. These audits are every bit as stringent as those performed by the NACD.
The resultant reports are shared with our finance team – not operations – to ensure an unbiased assessment. Furthermore, these audits are tied to compensation, so management and associates are incentivized to keep chemical operations in tip-top shape at all times.
To learn more about working with a seasoned chemical logistics provider on the West Coast – and the benefits of integrating chemical warehousing, transportation, and port services – contact Weber today.