Safety in the Supply
Chain
Second delivery: Define
your scope of work.
Services we provide.
Packaging and transport
As professionals, our efforts are driven by the wish to fulfill the highest requirements
our clients ask. We are conscious that the quality of the products we provide is directly related
to the correct development and recognition of the brand we serve.
We know how delicate could be the mishandling and improper manipulations of dangerous
substances within the industry. Thus, our consultant group is fully committed to maintain and
provide to our customers only the best material quality that the market could offer. Every
product we ship has been handled according to the severe and detailed specifications
established by the correspondent regulatory authorities.
Lithium-ion batteries are classified under United Nations category 9 as dangerous
goods because they are thermally and electrically unstable if they are subjected to certain
uncontrolled environmental conditions or are mishandled during transportation.
In face of these delicate materials, we must ensure every battery we provide to our
customers is certified under the four quality-performance certifications available in the market.
These certifications bring quality guarantees and support that the batteries fulfill technical
expectations and are safe to be transported. This will represent savings in costs and time to
our clients.
UN 38.3: Mandatory transport for every Lithium-ion battery by air, road, or sea.
EIC 62133: Specifies the requirements to no-acid batteries, portable, and leak proof batteries
in order to guarantee the security in their performance under intended use and any other
foreseeable misuse.
UL2054: Intended to reduce and prevent risks of injury to carriers caused by fire or explosions
when batteries are transported, stored or disposed of.
CE: Certifies that the product meets the essential requirements by European legislation in
health, security, and environmental protection. Also certifies that manufacturing and assembly
of the batteries were made in accordance with European legislation.
Additionally, we ensure that packaging, labeling and transporting methods are regulated under
national and international specialized authorities.
Nationally
OFFICIAL MEXICAN STANDARD NOM-212-SCFI-2017, BATTERIES AND PRIMARY
BATTERIES-MAXIMUM PERMISSIBLE LIMITS, TEST METHODS AND LABELING.
OFFICIAL MEXICAN STANDARD NOM-009-SCT2 / 1994 LABELING OF CONTAINERS
AND PACKAGING INTENDED FOR THE TRANSPORT OF HAZARDOUS SUBSTANCES
AND WASTE
Globally
The International Air Transport Association. (IATA) The global trade organization that
develops commercial standards and publishes the Dangerous Goods Regulations, containing
standards for the transport of dangerous goods by air.
International Civil Aviation Organization (ICAO) Technical Instructions for the Safe
Transport of Dangerous Goods by Air. ICAO is the United Nations body with jurisdiction over
international aviation issues.
PHMSA is the Pipeline and Hazardous Materials Safety Administration of the U.S.
Department of Transportation(DOT) which develops regulations for the transport of
dangerous goods by all modes within the U.S.
Packaging, labeling, and transport
In order to fulfill regulations and meet DOT/ICAO/IATA requirements batteries are packed,
labeled, and transported by air as follows. This in addition to a Dangerous Goods contract if
required.
1. A lithium battery test summary (TS) document should be requested before any battery is
shipped. According to the regulatory agencies’ requirements. (altitude simulation, thermal
test, vibration, shock, external short circuit Impact, overcharge, forced discharge, abnormal
charge, EMC test, limited power source, component, and surface temperature.)
2. Batteries must be placed in rigid outer packaging (unless contained in equipment) and inner
packaging designed to prevent damage to the batteries and short circuits (non-conductive
materials) the outer packaging must be marked as an “OVERPACK” They should not be
able to contact other batteries and/or any other conductive contents or packaging.
Labeling:
3. The battery handling mark pictured must be applied to the package.
The shipper must add the appropriate UN Identification Number
(Obtain a Lithium Battery Test Summary (TS) Document from the
battery supplier for this information). A phone number must be listed
for information about the package. The mark must be fully on one
package surface.
4. The following statement (marking) must be placed on UN3480
packages containing only lithium-ion cells (<20Wh) and batteries
(<100 Wh) that do not exceed the quantity limits (per package) shown in the U.S.
regulations: “LITHIUM-ION BATTERIES - FORBIDDEN
FOR TRANSPORT ABOARD PASSENGER AIRCRAFT”
Without correspondent labeling, shipment can not be
shipped to our client’s final destination.
Certificates:
C-TPAT; Customs-Trade Partnership Against Terrorism is an initiative of the United States of
America to provide security to companies’ supply chain and ensure security against terrorist
attacks. Having this certificate means collaborating with Customs and Border Protection to
identify gaps in the current security, implement new security measures and of course, protect
the supply chain. Some of the benefits of having this certificate are, members are considered
as low-risk, wait times at the border are shorter, access to the FAST lanes, front of line
inspections, and a lot more.
BASC; Business Alliance for Secure Commerce is an international business alliance that
promotes safety in commerce by implementing standards and safety procedures with the help
of the government and other organizations. Some of the benefits of this certificate include
increased confidence of the authorities, preferential rates in WBO events, courses regarding
security, decrease in costs and risks.
AEO; Authorized Economic Operator is a Custom-to-Business partnership that requires the
company to meet certain requirements and cooperate with customs authorities to achieve their
common objectives which is the supply chain security. As every certificate this one also
includes benefits such as easier admittance to customs simplifications, notifications in case of
physical or customs control, recognition with third countries. This certificate could be really
useful since the plan for the company is to export the lithium batteries to Europe.
Operating Mode
The lithium-ion supply chain can be cut into three parts, upstream, midstream, and
downstream, to which we will only be focusing in the downstream since it’s the part where
batteries are hardly assembled and packaged together.
Job Fulfillment
As seen in the mind map seen below, we will be focusing on the transition between the battery
and the end-users, which will include the battery pack and storage overall. Our agenda
consists of receiving the batteries, assembling the last bits of them, and packaging them for
them to be transported and moved to the final users.
Strategy to serve the customer
Our strategy consists of complying with the required certifications, laws, and regulations while
giving a one-of-a-kind service based on values such as excellence and care, values that could
be measured at any time with client inspections, reports, and damage mitigation. Additionally,
on the road adjustments can and may be made in regards to making the client with an athome feeling and experience.
Timeline
Our detailed timeline is exposed in our .xlsx file that contains dates, tasks assigned, people in
charge, and a very elaborate event division that will allow us and the client to work properly
mitigating time and resource loss.
Work plan in general
As exposed in the previous sections and the .xlsx file mentioned above, our goal is to comply
with everything needed, from our client to any certification or law, so that everyone involved
in this promising project can feel sure to be in our hands and happy to be with ASK.
Budget Proposal
Our budget proposal is divided in 7 main sections:
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Fixed costs: $14,052.00 (annually)
Initial investments: $2,838.00 (total)
Wages: $170,400.00 (annually)
Equipment: $77,202 (total)
Operational expenses: $13,672.08 (this cost is variable, depending on the volume of
batteries, we estimated 100 kilograms of batteries each month for a year)
Travel expenses: $41,952 (annually)
Certificates: $30,744.00 (total)
The total budget is $350,860.08 USD. A broken down version of this budget is included in the
.xlsx file attached.