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EHS Compliance – Waste Code Generation 

Introduction

A manufacturing company handling large volumes of returned goods faced challenges in accurately classifying waste for regulatory compliance. Misclassified waste posed legal risks, fines, and potential environmental hazards, while manual processes were slow, error-prone, and required extensive human oversight. 

The client needed an AI/ML-driven solution capable of generating precise waste codes, automating compliance reporting, and ensuring adherence to environmental, health, and safety (EHS) regulations across operations. 

Challenges

The company’s EHS and operations teams faced real-world obstacles:

 

  • High risk of misclassification: Manual waste coding caused up to 15% of returns to be incorrectly labeled, creating compliance exposure. 
  • Time-consuming reporting: Regulatory documentation for returned goods took 3–4 days per batch, delaying audits and increasing administrative costs. 
  • Fragmented data sources: Waste data was scattered across ERP systems, spreadsheets, and warehouse records, making accurate classification difficult. 
  • Regulatory complexity: Waste codes needed to comply with multiple federal and state regulations, with frequent updates. 
  • Scalability issues: As returns increased during peak periods, manual processes could not keep pace. 

The company required a centralized, intelligent system to automate classification, enforce compliance rules, and provide audit-ready documentation. 

Our Solution

We implemented an AI/ML-powered Waste Code Generation System with the following capabilities:

 

  • ML-Based Classification Engine: Leveraged BERT and GenAI-LLM to analyze returned goods and assign accurate waste codes automatically. 
  • Automated Data Pipelines: Integrated ERP, warehouse, and returns systems to centralize data collection and ensure seamless flow to the compliance engine. 
  • Regulatory Compliance Engine: Embedded up-to-date federal and state regulations into the AI framework to automatically validate waste classifications. 
  • Cloud Deployment: Hosted on a secure, scalable cloud platform, enabling centralized access and real-time updates across locations. 
  • Automated Reporting: Generated detailed, audit-ready compliance reports instantly, reducing manual effort and risk of errors. 

This solution transformed manual, error-prone processes into automated, AI-driven compliance workflows, improving speed, accuracy, and regulatory adherence. 

Results
  • 90% reduction in waste code misclassification, minimizing compliance risk and potential fines. 
  • 70% faster reporting time, reducing batch documentation from 3–4 days to under 1 day. 
  • 50% reduction in manual intervention for returned goods processing. 
  • 100% compliance alignment with federal and state EHS regulations, ensuring audit-readiness. 
  • Scalable operations, handling peak return volumes without additional staff or errors. 

The AI-powered EHS compliance system enhanced operational efficiency, improved regulatory adherence, and provided peace of mind for the company’s environmental and legal teams. 

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