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Highlights for Product Compliance in SAP S/4HANA 2020 | Part 2 – Dangerous Goods Management

Beginning of October this year we released SAP S/4HANA 2020.

In the following blog, I will summarize the highlights that come with Product Compliance.

The blog is built as a series of 3 parts and present the key highlights for:

Introduction

Whenever a company produces, sells, or transports a product, the company has to ensure that the product meets all regulations: laws, industry standards, and company standards.

With Dangerous Goods Management, you can assess unpackaged and packaged dangerous goods, classify them according to dangerous goods regulations, and decide whether transportation of a product is allowed, allowed with restrictions, or forbidden.

Dangerous Goods Management also provides classification data for checks in sales and delivery processes for transport permissions on the dangerous goods involved. If the transport of dangerous goods by a particular mode of transport is forbidden in a specific country, the transport must be prevented. If transport is possible only under certain restrictions, a warning appears. If transport is forbidden, or the dangerous goods classification has not yet been assessed, the sales and delivery documents are blocked.

Remark

Before the release of SAP S/4HANA 2020, the compliance requirement was based on the Text-Based Regulation. In this case, the system was basically asking you to fill in all the Dangerous Goods texts that are needed manually in all languages. This was a writing approach, as you tape all information in the system, but the power was the integration in the shipping process to check if a shipment is allowed or not and to produce the correct dangerous goods information and documentation.

Now with the SAP S/4HANA 2020 release, SAP introduces compliance requirements based on the Content-Based Regulation compliance pattern contains in addition nearly all information that the corresponding regulation provides for a UN number. SAP delivers the regulation completely with the software, and if the regulations become updated, SAP delivers the updated compliance requirements containing dangerous goods information.

Note 1: Content-based compliance requirements are only delivered by SAP. A customer cannot create compliance requirements with this compliance pattern.

Dangerous goods classification

The European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)

Now with the SAP S/4HANA 2020 release, and as part of the SAP content for Dangerous Goods Management, a new content-based compliance requirement for ADR is delivered. This compliance requirement contains detailed classification data for a UN number, such as packing group, proper shipping name, special provisions, and information about allowed quantities if you want to use exemptions.

When classifying an unpackaged product using this content-based compliance requirement, you only select the applicable data set for the UN number and the other provided classification data is filled automatically into the corresponding fields in the Classify Dangerous Good According to ADR – Unpackaged Product app.

With this feature, you can also print dangerous goods data on sales contracts.

You can find these compliance requirements in the Activate Compliance Requirements app for each solution area. In this SAP Fiori app, we include also a new feature and now you can compare a new or updated compliance requirement version with an existing version.

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Figure 1: Generation of dangerous goods basic description in the required languages

ADR, formally the European Agreement of 30 September 1957 concerning the International Carriage of Dangerous Goods by Road, is a 1957 United Nations treaty that governs transnational transport of hazardous materials. “ADR” is derived from the French name for the treaty: Accord européen relatif au transport international des marchandises Dangereuses par Route). From 1 January 2021, the treaty will be renamed Agreement concerning the International Carriage of Dangerous Goods by Road as the term “European” in the incorrectly may give the impression that the treaty is only open for accession to European states.

 

Enhancements with more dangerous goods regulations

With the SAP S/4HANA 2020 release, and as part of the SAP content for Dangerous Goods Management, new more content-based compliance requirements are delivered that:

  • contains information provided by these dangerous goods regulations to simplify the classification process for unpackaged products
  • allows the generation of the dangerous goods basic description in the required languages
  • gives you the ability to dynamically show or hide additional information for all regulations listed below.

 

International Maritime Code for Dangerous Goods (IMDG):

IMDG Code or International Maritime Dangerous Goods Code is accepted by MSC (Maritime Safety Committee) as an international guideline to the safe transportation or shipment of dangerous goods or hazardous materials by water on vessel. IMDG Code is intended to protect crew members and to prevent marine pollution in the safe transportation of hazardous materials by vessel.

Title 49 of the Code of Federal Regulations (49 CFR):

Transportation is one of fifty titles comprising the United States Code of Federal Regulations (CFR). Title 49 is the principle set of rules and regulations (sometimes called administrative law) issued by the Departments of Transportation (DOT) and Homeland Security, federal agencies of the United States regarding transportation and transportation-related security.

UN Model regulation (UNRTDG):

Compliance requirement with data from the UN Model Regulations.

These compliance requirements contain detailed classification data for a UN number, such as packing group, proper shipping name, special provisions, and labeling information.

International Air Transport Association – Dangerous Goods Regulation (IATA):

Recognized by airlines worldwide, the IATA Dangerous Goods Regulations is the industry standard for shipping dangerous goods by air and the only standard recognized by airlines. IATA is the “THE” industry standard for shipping dangerous goods by air.

Transportation of Dangerous Goods Regulations in Canada (TDG):

Compliance requirement with data from the Transportation of Dangerous Goods Regulations for Canada – Road/rail/ Inland water

Official Mexican Standard NOM-002-SCT (NOM):

Compliance requirement with data from the Official Mexican Standard NOM-002-SCT

ANTT Resolution 5232 in Brazil:

The compliance requirement for Brazil with data from the Resolution 5232, of December 14th, 2016

NCh382 Dangerous Goods in Chile:

The compliance requirement for Chile with data from the NCh382:2017 Dangerous Goods – Classification regulation

 

You need more information on this? Read the following documentation and watch the two videos below.

 

Figure 2: With the Dangerous Goods Classification feature, we deliver new content-based compliance requirements that contain information provided by the dangerous goods regulations to simplify your classification process for unpackaged products (note: no audio voice available)

 

Figure 3: Enhanced Dangerous Goods Classification for IATA, TDG in Canada, NOM, ANTT, and NCh382 reduces compliance costs through increased data quality and efficiency (note: no audio voice available).

 

Remark: SAP is providing Regulatory content for almost all the regulations worldwide (related to chemicals compliance), the complete list (huge) can be viewed from the SAP Product Compliance Help portal page here.

 

Enhancements in Dangerous Goods Classification of Packaged Products

With this feature, you can leverage the automated generation of dangerous goods descriptions based on description templates. You can also assign special provisions or exemptions to the classification of packaged products. The special provisions and exemptions, as well as the definitions of the description templates and rules, are provided in the dangerous goods compliance requirements delivered by SAP.

Additional Details

Regulation-specific dangerous goods descriptions are required to be printed on sales and delivery documents for dangerous goods. This feature provides an automatically generated description for documents when you select and update classification details for a product. As well as saving time, this helps ensure compliant transportation of regulated products to avoid fines during goods delivery.

 

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Figure 4: Save time through semiautomatic generation of dangerous goods descriptions.

 

Advanced shipping notification for outbound delivery processing

With the SAP S/4HANA 2020 release, we deliver now a service interface to distribute dangerous goods data for all relevant products to external business partners through EDI as part of advanced shipping notification.

With this feature, you can use the Electronic Data Interchange (EDI) function to provide dangerous goods data for sales and delivery documents electronically.

 

Figure%205%3A%20Improve%20on-time%20delivery%20of%20goods%20through%20advanced%20dangerous%20goods%20data%20communication

Figure 5: Improve on-time delivery of goods through advanced dangerous goods data communication

You need more information on this? Read the following documentation

 

If you are also interested in Product Compliance for SAP S/4HANA Cloud, I would like to draw your attention to my blog SAP S/4HANA Cloud for Product Compliance – The Link Collection

For more information on SAP S/4HANA 2020, check out the following links: 

Follow us via @SAP and #S4HANA, or myself via @VoglerChrist and LinkedIn

 

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