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Expert Insight: Sorting it Out
By Cliff Holste
Date: March 10, 2010

Logistics News: When Planning A New Project - Ignore Code Regulations At Your Own Peril

Avoiding the Regulations "Gotcha" And All The Resulting Excitement

You’re probably thinking – a blog on regulations, how boring! Well you’re right. Because, what we are going to cover in this blog is intended to keep you from experiencing too much excitement. However, if it’s excitement you want, ignore what’s going on in the regulatory world. Just keep doing projects the way you have always done them and eventually you will experience some excitement.

 

It happens more than you might think. For example, just image how thrilled you will be in the knowledge that your existing facility’s five-inch thick floor slab isn’t acceptable for supporting the new storage racking you just installed. That is - not according to the latest version of the International Building Code that’s followed in your local municipality.

 

This rack example may or may not be a major crisis depending on whether or not you can increase the size of the base plates to spread the imposed floor load over a larger footprint. But that’s not the point. It’s way better to know the latest version of the applicable regulations and take them into account before commencing the project.

 

A Project Manager for a large material handling systems provider recently told us the way he describes the permitting process – local regulators seem to pick from the codes they follow the way the rest of us order from a Chinese menu: one from Column A, two from Column B. And, just to make it more interesting, there are several codes from which to select.

 

But that’s not all. In addition to having three or four different and sometimes conflicting codes to consider, there are also proposed or suggested code changes to further confuse you. For a recent example you can look to the National Association of State Fire Marshals (NASFM) for a code change proposed just last year that would have moved wood pallets up two classes in terms of sprinkling system requirements. If this code change ever goes into effect it would mean that most DCs would be required to install new sprinkler systems – at enormous cost (see SCDigest article - Shippers Dodge a Bullet, for Now, as Fire Marshals Group Tables Wood Pallet Classification Changes).

 

Be Proactive and Take Responsibility


We’re living in a new world of regulations. This is a world where cookie-cutter approaches don’t apply any more. What passed inspection just a few years ago won’t necessarily satisfy the current code. Don’t rely on the years of project expertise your vendors and dealers have accrued. Especially, when it comes to building codes, because (as the saying goes) all politics are local and the rules change accordingly.

 

That’s why it’s up to you to contact the municipality where you want to build or add-on. Pin them down, if you can (documented if possible), on what the appropriate codes are now, what may be coming down the pike, and how they’ll apply to your project. These kinds of preliminary preparation will speed-up the formal permit process later on.

 

That applies to what you’ll be receiving and shipping in your facility, as well. Thanks to global terrorism, homeland security is also your responsibility. If you source from overseas, it might pay you to get interested in the latest U.S. Customs Service initiative: The Customs-Trade Partnership Against Terrorism (C-TPAT). This is a joint government-business initiative to strengthen overall supply chain and border security.

 

Participants are required to conduct a comprehensive self-assessment of supply chain security using C-TPAT security guidelines encompassing procedural, physical and personnel security. The guidelines also prescribe education and training, access controls, manifest procedures and conveyance security. You’d be expected to communicate these guidelines to your supply chain partners and build them into your relationships.

 

What’s in it for you? To start with, fewer inspections, fewer delays, an assigned account manager, access to the C-TPAT membership list, and an emphasis on self-policing rather than Customs verification. However, perhaps the biggest potential benefit is a safer global supply chain. For more information, go to www.customs.gov.


Final Thoughts


Regulations can be confusing. They can be frustrating. They can even be infuriating. But if you want to manage the level of excitement on your next project, get to know the regulatory bureaucrats and politicians that pull the strings at your City Hall. And, once you have secured all of the required permits, rejoice! You’re well on your way to having a boring project.


Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

You can also contact Holste directly to discuss your material handling or distribution challenges at the Feedback button below.


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profile About the Author
Cliff Holste is Supply Chain Digest's Material Handling Editor. With more than 30 years experience in designing and implementing material handling and order picking systems in distribution, Holste has worked with dozens of large and smaller companies to improve distribution performance.
 
Visit SCDigest's New Distribution Digest web page for the best in distribution management and material handling news and insight.

Holste Says:


We’re living in a new world of regulations...a world where cookie-cutter approaches don’t apply any more.


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