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by Hal Koss
Key Takeaways
- Industrial parts span dozens of freight classes, and each wrong guess costs money.
- Mixed parcel, LTL, and FTL orders make mode choice a daily decision, not a policy.
- A TMS builds NMFC classification and rate shopping into the booking workflow itself.
- Lean teams need ERP integration and audit built in, not another portal to staff.
Industrial parts distributors ship high volumes of mixed-SKU freight across various modes with varying density, freight class, and customer-specific delivery requirements. In other words, shipments can be complex.
For SMB shippers, those decisions are often made manually. Freight classes are guessed, carriers are selected out of habit, and SLAs are tracked outside of a centralized system. That approach breaks down as volume increases, leading to inconsistent execution and avoidable costs.
A generic logistics tool won’t solve this. The complexity of industrial distribution requires a modern transportation management system built to handle it. This guide breaks down what to look for.
Freight Challenges Specific to Industrial Parts Distributors
Freight Class Complexity
Freight class complexity is one of the main challenges specific to industrial parts distributors. Industrial parts span dozens of NMFC classes. These codes are assigned based on density, handling, stowability, and liability, and misclassification leads to reweighs, reclasses, and unexpected charges.
Mixed-Mode Shipments
Another complication comes in the form of managing mixed-mode shipments, including when to deploy them and how to best approach them. Mode selection means:
- Parcel for small parts.
- LTL for mid-range orders.
- FTL for large or palletized orders.
Handling this manually (as is standard for SMB shippers) is unwieldy and opens business owners up to missed savings and costly errors.
Customer-Specific SLAs
Customer-specific SLAs introduce another layer of complexity. These SLAs result in companies adjusting delivery windows based on production schedules or required service commitments. Requirements vary wildly by customer and order type.
Returns and Reverse Logistics
Damaged or incorrect parts create inbound freight complexity and require returns workflows that often fall outside of standard operations.
How Does a TMS Address Industrial Distribution Needs?
It moves the three decisions that cost distributors money, freight class, mode, and carrier, out of a person’s head and into the booking workflow.
NMFC Classification Built Into Rating
A TMS for industrial distributors can (or at least should) reduce misclassification and reclass charges by having NMFC classifications built into ratings. This helps teams standardize and streamline how freight is categorized.
Multi-Modal Rate Shopping
Similarly, multi-modal rate shopping should be a requirement for any TMS for distributors. This will allow teams to compare parcel, LTL, and FTL options automatically, allowing them to select the best mode by cost and service level.
Customer-Specific Carrier and Service Rules
An added benefit of using a modern TMS for distribution is that you can automate carrier tendering using predefined rules, ensuring the right carriers are assigned to each shipment without manual intervention.
What Should Industrial Distributors Look for in a TMS?
Look for LTL carrier depth, NMFC support inside the workflow, ERP integration, built-in freight audit, and an interface a two-person team can run.
Strong LTL Carrier Network
A strong LTL carrier network is near-nonnegotiable when considering a prospective TMS for distribution. You’ll want regional coverage for direct-to-site deliveries.
NMFC Support in the Workflow
NMFC Support should be built into the TMS workflow. Business owners and logistics teams should be freed from having to manually wrangle with codes, instead being able to rely on automatic classification guidance built into freight class rating.
ERP Integration
Enterprise resource planning (ERP) systems are common for industrial distributors, so the ideal TMS will include robust ERP integration options. Look for SAP, NetSuite, Epicor, or similar systems to ensure you’ll have access to order-driven shipment creation.
Freight Audit Capabilities
Freight audit capabilities can make up the difference in not having a dedicated audit team, which is something most SMB shippers can’t afford. A TMS with automated freight audit capabilities can counteract LTL billing errors that require systematic validation.
Ease of Use for Lean Teams
The last category isn’t a specific feature but rather an overall quality. A TMS for industrial distributors needs to be easy for small teams to operate. This means easy onboarding, intuitive design, and features that can be understood at a glance.
Industrial Freight Is Complex. Automation Turns It Into an Advantage.
Generic logistics tools may be unreliable, but a modern transportation management system, like ShipperGuide TMS, can help streamline your freight distribution.
Frequently Asked Questions
What Is the Best TMS for Industrial Distribution?
The best TMS for industrial distribution is one that includes streamlined NMFC classification, management of multi-modal rate shopping, and adherence to SLA requirements. Carrier coverage on your regional lanes decides the rest of it.
How Do I Reduce Freight Class Errors in LTL Shipping?
You can reduce freight class errors in LTL shipping by utilizing a TMS that has built-in NMFC support. This helps cut down on misclassification and reclass charges by automating the proper assignment of codes.
What Is an NMFC Code and Why Does It Matter for Parts Distributors?
An NMFC code is the classification an LTL carrier uses to price a shipment, assigned on density, handling, stowability, and liability. It matters because a parts catalogue can span dozens of classes, so a single wrong code turns into a reweigh, a reclass, and a bill that arrives weeks after the freight did.