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 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.
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 routing parcel for small parts, LTL for mid-range, and 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 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.
Damaged or incorrect parts create inbound freight complexity and require returns workflows that often fall outside of standard operations.
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.
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.
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.
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 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.
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 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.
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.
The best TMS for industrial distribution is one that includes streamlined NMFC classification, management of multi-modal rate shopping, and adherence to SLA requirements.
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.
Generic logistics tools may be unreliable, but a modern transportation management system, like ShipperGuide TMS, can help streamline your freight distribution.