transportationPricing

Transportation pricing

Sort out the manner of transportation costs compilation inside your company – inquiries to the forwarding department and resultant valuations made without e-mails or phone calls

Pressurize your sales department into delivering the whole information your need to determine the transportation costs (the admissible car height or the projected product numbers per pallet, for example)

Re-calculate the transportation costs for any unit, convenient for sales officers, considering all the details (the transportation costs of 10 engines, for example)

Let sales officers browse through similar valuations to minimise the number of inquiries sent to the forwarding department

Transportation pricing

A unique SOOT system feature is its “Pricing” module. In this module, a company can set up and sort out the manner of communication between the sales department and the forwarding department staff.

Often we see the following scenario at the company:

  • To present a sales offer to the client, a sales officer needs to know transportation costs of 1,000 product items (jars, for example).
  • They e-mail the forwarding department with an inquiry about the transportation costs, stating the expected route and projected contract start date.
  • However, to determine the actual costs, a logistics officer needs extra details – the admissible client car loading capacity or the expected return time of returnable containers, or the party to pay insurance costs at least. Thus, they ask the sales department staff about it by e-mail.
  • Upon receiving the indispensable clarifications, the logistics officer checks the contracts signed with the forwarders. When needed, they take the price from the market and reply to the sales staff that the cost of one cargo for the route and time set and upon meeting other terms and conditions would be PLN 1,500.
  • The sales officer is forced to re-calculate the cargo cost for 1,000 product units and later they send the bid to the client.
  • The client accepts the bid and the contract is being closed.
  • The contract is being performed and it occurs that instead of the scheduled 5 pallet layers, the car can only take 4 because a higher car will not be able to enter the client’s warehouse. The transportation costs will certainly increase considerably, whereby the entire contract proves hardly profitable.

And this is how this scenario could be handled in the “Pricing” module of the SOOT system:

  • A sales officer who needs to know the transportation costs browses through the pricing database, checking whether a similar inquiry has not been already made by other employees.
  • When they cannot find in the database the information needed, they fill in a predefined price inquiry form where – conditional on the product transported –the SOOT system dynamically prompts them to give the requisite and optional information.
  • The sales officer sends an inquiry to the logistics officer, additionally stating the expected unit (1,000 product units, for example).
  • Upon receiving the inquiry in the SOOT system, a logistics officer determines the transportation costs, being able to use the prices offered by forwarders during the tender procedures and auctions and the calculator with which they can account for other items of information and re-calculate the one-unit costs into another number (they can re-calculate the cargo price into the price for 1,000 units, for example).
  • When ready, the logistics officer sends the valuation as a response to the sale officer’s inquiry, and also publishes it in the pricing database at the same time
  • For one inquiry, there can be numerous valuations made, with slightly different parameters

What benefits will you derive from using the “Pricing” module in SOOT?

  • You will line up the communication between the sales and forwarding departments
  • By working on one, shared database, you will eliminate misunderstandings in determining the company transportation costs
  • You will reduce the workload of forwarding department staff and you will speed up the time when sales officers get the transportation costs
  • You will have it easier to plan costs and safer to prepare bids for new sales market, not serviced yet

When:

  • you want to arrange transport services in a systemic, transparent and cheap manner
  • staff spend most of their time compiling and reconciling the acquisition data indispensable for issuing a transport order
  • communication with carriers gets too arduous for you
  • you are considering increasing the group of carriers, but you are worrying about the related headcount increase at the same time
  • car queues in front of your plant become an issue or you start lacking parking spots in your parking area
  • you order many transports
  • you are preparing yourself for handling transports in new routes
  • you think that you have negotiated the best prices for the routes serviced
  • your superiors compel you to cut back the transportation costs
  • you have problems with clearing the services provided by carriers
  • you bear delivery delay costs
  • you have other problems with transport service, not listed above or
  • you spend too much time planning, arranging or overseeing transport services

you certainly need SOOT – a flexible, multilingual application with a cutting-edge user interface and friendly licensing procedure.