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DANGEROUS GOODS WAREHOUSING AT HAZCHEM LOGISTICS MANAGEMENT INTRODUCTION HazChem Logistics Management Co., Lid. has been incorporated in Thailand since 2004 as a leading third-party logistics services company (3PL) specializing in handling in- tegrated logistics services for dangerous goods and chemicals with a strong commitment o safety using its Responsible Care system. Based on the corporate business philosophy of Responsible Care , the principle of "doing the right thing" has been one of HazChem's core corporate values. HazChem has been dedicated to continuous improvement of all lo- gistics processes with a commitment to health, safety, and environmental excellence. More than 90 percent of its customers are leading multinational chemical corporations. The inte- grated services of HazChem encompass freight forwarding services by sea and by air (port- to-port and door-to-door), LCL consolidation of dangerous goods, customs clearance, ISO tank container services, and warehousing and transportation services for dangerous goods and chemicals. HazChem is a member of the Triple i Logistics Group, a leading Thai logistics integra- tor which is comprised of more than 15 companies specializing in various areas of logis- tics. HazChem is also accredited as an ISO certified company. In response to the emerging ASEAN Economic Community (AEC), HazChem has been continuously growing and ex- ploring logistics opportunities within the ASEAN region. Through several joint ventures, a number of affiliates have been set up in both Thailand and overseas as follows . DG Packaging (Thailand) Co., Ltd. - a specialized dangerous goods packaging provider in Thailand. . HazChem Logistics Management Pte Lid. - a leading 3PL for dangerous goods and chemicals in Singapore . CWT Chemical Logistics Co., Ltd. - a leading integrated logistics service pro- vider for global and regional logistics contracts. THE STORY OF HAZCHEM Since its beginning, HazChem has been exercising a niche marketing strategy, focus- ing on customers specifically in the chemical industry. The first service HazChem pro- vided to the chemical industry was freight forwarding by sea. Thereafter, other value added services included customs clearance for export and import, as well as container trucking. HazChem also represented Nippon Concept Corporation, a leading Japanese ISO tank Case written by Chalermsak Karnchanawarin, Managing Director, HazChem Logistics Management Co., Lid and Watcharapoj Sapsanguanboon, Lecturer, Graduate School of Management and Innovation, King Mongkut's University of Technology Thonburi. Used with permission. This case was prepared solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised names and other identifying information to protect confidentiality. 2Introduced by the International Council of Chemical Associations (ICCA), "Responsible Care"" is a chemical industry's unique and global initiative that drives continuous improvement in health, safety and environmental (HSE) performance together with open and transparent communication with stakeholders. More information 2 can be found on the ICCA web site. (http://www.icca-chem.org/en/home/responsible-care/)Dangerous Goods Warehousing at Hazclrern Logistics Management operator. HazChem was appointed agent for operations of ISO tank containers for bulk liquid transportation in Thailand. More recently, HazChem launched specialized and in- tegrated freight forwarding services by air for dangerous goods and also serviced one of leading global air express couriers as a back-end vendor. The freight management system in use is an inhouse software called CyberFreight. HazChem has also started operating its rst public warehouse, purely dedicated to the storage of dangerous goods and chemicals in Thailand. The warehouse operating area for dangerous goods has been increased to 134,550 square feet as of the end of 2014. HazChem's Organizational Structure HazChem has designed its organizational structure into four primary departments. The rst is the sales and marketing department which is mainly in charge of approaching pro- spective chemical customers while developing and maintaining the existing ones. The sales and marketing department offers one-stop integrated logistics services, multi-logistics ser- vices. and single service. According to the United Nations Recommendations on the Transport of Dangerous Goods (UNRTDG), dangerous goods are classied into 9 categories as shown below: Class 1: Explosives Class 2: Gas Class 3: Flammable liquids Class 4: Flammable solids Class 5: Oxidizing substances and organic peroxides Class 6: Toxic and infectious substances Class 7: Radioactive material Class 8: Corrosive substances Class 9: Miscellaneous dangerous substances and articles Additionally, non-dangerous goods (Non-DG) are goods which are classied as non- dangerous for transport. Case Study Questions: 1. Identify all of the operational problems of this case. 2. In order to facilitate the storage and ow of dangerous goods at the warehouseI which method of goods location allocation do you believe is bestthe first setup with several zone priorities or the latest idea with specic zones for specic classes of dangerous goods? Discuss the advantages and disadvantages of each method. 3. As far as the WMS is concerned, please discuss HazChem's potential switch to a to- tally new WMS. What should be the major operational concerns and/or issues with regards to goods flow and o'ice workload when making such a decision? 4. Ifyou were the logistics manager of the customer service department or warehouse manager of the company, what would you do to further streamline the operational flow and design of the warehousing operations found in this case