Forwarding Margin Analysis
General
For a freight forwarder it is crucial to have insights in the margin of a shipment over time. During the execution of a shipment, many changes can occur which can have significant impact on the financial results of a Shipment, a few examples:
- Occurence of Additional costs, such as cost for weighting hours occured during loading or unloading activities, or demurrage and detention charges.
- Changes in how LCL or LTL shipments are consolidated into transportation bookings.
- Changes in the consolidation of house airwaybill shipments.
How to setup the Margin analysis functionallity
- Create a calculation type code, you can define a code for all the stages you need to get insight in. Usually a code is created for the initial booking stage (EST, Estimate) and a code for the end stage of a shipment (REC, Recalculate).
- In the status template / workflow, configure a status function to create the calcuations.
- On the Service card, you can specify the Margin Distribution Function Code.
- On the Service card, you can specify the Service group.
Assignment of revenues and costs
The costs or revenues will be distributed with the quantity calculation from the agreement detail line. If a revenue or cost has been registered manually or from an external source, the Margin Distribution Function Code field on the service card will be used to distribute the cost or revenue amounts.
There are many scenario's where costs or revenues need to be distributed. In this learn page you can find a few of the supported scenario's:
MAWB / MBL
When you generate a master shipment, the freight costs are registered on the level of the master shipment. In order to give you insight into the margin of the individual house shipments, the costs will be assigned to the house shipments. To get insights of the margin of the master level, all revenues of the House shipments will be assigned to the master shipment.
Groupage
It can be very profitable to create a transportation booking for a number of shipments. To get insight on a shipment level, thhe cost registered on the Transportation booking will be assigned to the related shipments. The relevant revenues of the shipments can be assigned to the Transportation booking.
How to review the margin of a shipment
On the shipment card you can review the margin with the margin analysis FactBox. To get further insights, you can choose the analysis overview action (click on the Title Margin Analysis).
Tip
From the analysis overview page, you can also manually generate a margin anysis in any of the stages of a shipment.