Rate and Quotation Management Overview
Introduction
Effective rate management is fundamental to a freight forwarder's profitability and customer service. The FMS module provides tools to manage both long-term agreed rates with customers and vendors (Contracts) and handle individual spot rate requests (Quotations).
This section covers the setup and processes involved in managing contracts, quotations, and related functions like rate import and contract journals.
Key Rate Management Areas
- Contracts: Manage long-term rate agreements with specific customers or vendors. Define rates for various services, geographical areas, equipment types, and validity periods. Learn about handling specific scenarios like Demurrage and Detention.
- Contract Strategy: Understand how contracts are prioritized and applied to forwarding documents.
- Contract Journals: Use journals for bulk updates or adjustments to contract rates, such as applying rate increases.
- Edit in Excel: Utilize Edit in Excel to efficiently upload or update contract rates in bulk in conjunction with the contract journal.
- Quotations (Spot Offers): Handle requests for spot pricing. Create quotations, calculate costs and revenues (potentially using Margin Rules), and convert accepted quotations into Shipments.
- Quantity Calculations: Define how quantities (e.g., weight, volume, chargeable weight, loading meters) are calculated, which directly impacts rate application.
- Services: Define the specific services being rated (e.g., Ocean Freight, Air Freight, Trucking, Customs Clearance).
- Areas and Regions: Define the geographical zones used in rate structures.
Workflow
A typical workflow might involve:
- Setting up base data like Services and Areas.
- Negotiating and entering long-term rates into Contracts.
- Handling ad-hoc requests via Quotations.
- Calculating costs and revenues on forwarding documents (Shipments) based on applied contracts or quotation details.
- Periodically updating rates using Contract Journals or Excel Import.