Hazardous materials can show up in an industrial or automotive supplier’s catalog in less obvious ways. Lithium batteries in power tools, aerosol brake cleaners, chemical coolants, and other chemical treatments can all require special handling under U.S. Department of Transportation (DOT) regulations. The work starts before a shipment reaches the warehouse, though. The classification, Safety Data Sheet (SDS), and product specifications need to be accurate in the item record first.
That makes hazmat shipping compliance a data problem before it becomes a shipping problem. When regulatory information is missing or incorrect, a supplier can run into problems during retailer item setup, electronic data interchange (EDI), and advance ship notice (ASN) processing. Those issues can delay onboarding, hold orders, and create chargebacks after an item is live.
For suppliers working with new retailers, distributors, or original equipment manufacturers (OEMs), getting this information right early can make the process much easier to manage.
What Counts as Hazmat?
Hazardous materials aren’t limited to the products most people immediately associate with the term. Federal regulations under 49 CFR classify hazardous materials into nine hazard classes, covering everything from explosives and gases to corrosive and miscellaneous materials.
For industrial and automotive suppliers, some of the most commonly overlooked products include:
- Lithium batteries: Batteries used in power tools, diagnostic equipment, electronics, and other products can fall under Class 9, depending on their characteristics and how they’re shipped.
- Aerosols: Brake cleaners, lubricants, paints, and other pressurized products may fall under Class 2.
- Chemical treatments: Coolants, cleaners, adhesives, coatings, and other chemical products may require classification based on their composition and properties.
- Pesticides and treated products: Products used for maintenance, pest control, or antimicrobial purposes may also have specific regulatory requirements.
The classification process depends on the material and its characteristics. Suppliers need to determine the applicable requirements rather than assuming a product is regulated simply because it contains a chemical or battery.
An SDS can provide important information for making that determination. The document includes information about a product’s hazards, composition, handling, and transportation considerations.
Other data points may include:
- UN or identification number
- Hazard class
- Packing group, when applicable
- Shipping description
- Battery specifications
- Chemical or net content
- Packaging information
The goal is to capture the relevant information in the item record before the product enters a retailer’s setup process.
Related Reading: How To Be WERCS Compliant
Retailers Add Another Layer
Meeting federal requirements is one part of the process. Retailers and OEMs may have their own requirements for hazmat items, and suppliers need to meet those requirements as part of item setup.
This is where generic hazmat shipping guidance can fall short for B2B suppliers. A supplier may have the information needed to classify and ship a product under federal regulations but still need additional information or documentation to get the item approved by a trading partner.
For example, Walmart Fulfillment Services (WFS) requires a Safety Data Sheet for items that meet its definition of a hazardous material as part of its hazmat item review. The retailer uses the information provided during setup to determine whether an item can move through its fulfillment network.
Automotive-specific retailers maintain their own vendor guide requirements as well, covering shipping, labeling, and packaging expectations suppliers need to review alongside any hazmat-specific rules.
These retailer-specific reviews make accurate item data especially important when a supplier is onboarding with a new trading partner. Requirements can vary by retailer, product, and fulfillment program, so teams should review the applicable requirements before submitting an item for approval.
How Bad Data Becomes a Chargeback
Hazmat issues often follow the same pattern as other EDI and fulfillment problems. A gap in the item record creates an issue during setup or shipping, and the resulting manual work or noncompliance can affect the supplier’s operations and margins.
The chain can look like this:
Missing or incorrect product data → item approval issue → onboarding delay → EDI or ASN problem → shipment disruption or retailer deduction
Consider a new product containing a lithium battery. If the supplier doesn’t have the required battery information when the item is submitted, the retailer may not be able to complete its review. That can delay the item from going live.
The same problem can surface later if the data transmitted in an EDI transaction or ASN doesn’t match the approved item information or the physical shipment. Instead of resolving the problem before the product ships, the supplier may have to investigate an exception after the fact.
Related Reading: EDI Chargebacks Explained
What to Gather Before an Item Goes Live
A proactive hazmat workflow starts with knowing what information the team needs before submitting an item to a retailer or OEM.
Product documentation
Start by gathering the current Safety Data Sheet and any other documentation needed to determine the product’s transportation requirements.
Regulatory information
Capture the applicable:
- UN or identification number
- Hazard class
- Packing group, when applicable
- Shipping description
- Relevant regulatory or transportation information
Battery specifications
For products containing lithium batteries, gather the specifications required by the applicable regulations and trading partner, such as:
- Battery type
- Watt-hour rating
- Battery and cell count
- Battery weight
- Packaging configuration
Chemical and product measurements
Make sure product quantities and units of measure are accurate. Depending on the retailer and product, this may include net weight, volume, or other required measurements.
Internal ownership
Hazmat data often crosses organizational boundaries. Regulatory or compliance teams may own classification and documentation. Product, procurement, warehouse, and supply chain teams rely on that information during item setup and fulfillment.
Assign clear ownership for collecting the data, reviewing it, and maintaining it when product information changes.
Build Hazmat Into Item Setup
Waiting until a product reaches the shipping dock to determine whether it requires special handling leaves little room to resolve missing information. By that point, the item may already be tied to a purchase order, shipment, or retailer requirement.
Instead, make hazmat information part of the item onboarding process. Gather the required documentation, capture the relevant regulatory attributes, and double-check the data against the requirements of each trading partner before the item goes live.
That approach gives compliance, warehouse, and supply chain teams a shared source of information to work from. It also helps keep the data used for retailer setup aligned with the information that flows through EDI and ASN processes later.
Hazmat compliance remains the supplier’s responsibility, but accurate item data can help keep the surrounding supply chain processes working as intended.
For more information about how SPS Commerce supports the EDI and fulfillment processes surrounding industrial supply, visit the SPS Commerce Industrial Supplies page.