A leading aerospace research institute specializing in Laser
Powder Bed Fusion (LPBF) depends on timely deliveries of
high-grade nickel alloy powders, materials classified as flammable
and toxic (UN Class 4.1). Despite the sensitive nature of these
materials, the client was experiencing escalating disruption in
inbound logistics. Only 53% of shipments arrived on time, and two
recent consignments were rejected for hazmat non-compliance at
customs.
In early 2024, a rejected 50 kg nickel powder shipment les to a three week operational standstill, putting multi-pound R&D milestones and OEM partnership commitments at risk.
When customs flagged the rejected consignment, the investigation revealed that the issue went far beyond a simple documentation error. Multiple layer of non-compliance were identified:
Because nickel powder is both flammable and toxic, even a single missing label voids customs clearance.
Compounding the issue, the freight partner reported a 2-3 week backlog for certified hazmat shipments. With only one approved supplier, no buffer stock, and limited track and trace visibility, the client has no way to prevent or absorb disruptions.
The risk matrix showed critical vulnerabilities:
All of these gaps directly threatened high priority R&D schedules and long term OEM trust.
AEM initiated a full scale analysis combining 5-Why, Hazmat Regulatory Gap Assessment, and Supplier Capability Audit to map the breakdown across people, process, and compliance.
Root Cause Summary: Lack of compliance verification (no poke yoke system), Supplier process immaturity, Single point of failure in sourcing, Inadequate SOPs, and Zero buffer stock to absorb variabilities.
This concluded that the problem was not only operational, but structural across the supply chain.
AEM designed and developed a two-phase strategy: rapid crisis recovery followed by long term stabilization.
We introduced a Hazmat Compliance Checklist, a fixed method control covering all mandatory requirements for customs and international hazmat transport. How it works:
This eliminated documentation & packaging errors and ensured every shipment was 'customs-ready' before leaving the supplier.
AEM rewrote the SOPs for: Inbound inspections, Hazmat documentation verification, Emergency sourcing, Repackaging requirements, and Buffer stock management.
Cross functional teams (procurement, QC, lab, operations) were trained in hazmat roles, responsibilities, and regulatory requirements.
We developed: Live inventory dashboards, Material depletion forecating, shipment status tracking, lead time variance monitoring. This enabled proactive planning instead of reactive crisis management.
AEM Consultancy (Analyze . Eliminate . Maximize) transformed a high risk, compliance vulnerable supply chain into a robust, predictable, and regulation-aligned hazmat logistics framework. By implementing error proof controls, redesigning SOPs, building internal capability, diversifying supplier base, and ensuring safety stock, the client now operates without disruption and with complete regulatory readiness.
The client regained operational stability, protected OEM relationships, reduced compliance risks, and fortified its long-term research delivery capability, setting a new benchmark for safe and resilient hazmat supply management in aerospace R&D.
Want to build a more resilient, data-informed, and scalable operations system in your manufacturing or R&D organization? Please contact AEM Consultancy