Introduction.
When doing business with Pallet Networks, setting up rate cards for the variety of pricing models can be quite a task. In this article, we will look at one of the most frequently used pricing models across the different networks. In this example there are multiple parameters to consider. Rates will be based on the Delivery Location Post Code, service levels, Pallet type and spaces based on the order - See the parameters below. This will be configured in a Price Table, multiple calculations and conditions, that will generate the Transport Charge.
Parameters:
Based on Delivery locations only, determined by postcodes, set as Post Code Zones (click for more details.)
Service Levels:
24hr
48hr
Consider the goods ordered, based on 3 tiers:
Single Pallet type: Quarter / Half / Full (1 pallet only)
Pallet Spaces: Fixed price based on number of pallet spaces ordered (2-5 spaces)
Total number of pallet spaces: Per Pallet rate based on 6 or more pallet spaces ordered.
Configuring the Rate Card
Navigate to Rate & Rate Card Customers.
Click 'Create price list' this will open a new screen.
Select the Transportation Service the new price list is associated with. Give the Price List a name, use something that will help to easily identify it. Set a Valid from date. If no date is set, the default will be the date the list was created.
There is an option to set the price list as a default for all customers if required. Otherwise, the price list should be linked to specific customers.
To add the price table, click the Edit Icon (pencil) on the Transport Charge line. This will open the 'Edit Price' screen. This price list will be broken down into different calculations to allow for the different pricing variables that need to be considered.
Calculation 1: SINGLE PALLET TYPE
Additional parameters:
Service level
Post Code zone
Method is Price Table: calculation looks Pallet Type and the quantity, the result needs to be 'Multiplied by a metric'.
Metric: Total pallet spaces, and in this calculation it is the BY PACKAGING TYPE/PRODUCT
Quantity to multiple by: 1 (pallet space)
Click on 'Edit Price Table' to enter the specific pricing components. These metrics will pull in from pre-defined order input options, for instance the Service Levels or Package sizes.
Post Code zones must be configured in advance in order for these to be included
Once the metrics are setup, select the 'Rates' tab to enter the rates that apply to each of the parameters set in the Metric Table.
Adding a Condition:
When using multiple calculations it is a good idea to enter a condition which will define WHEN the calculation should be used. In this case, a condition to only use this calculation if there is a SINGLE PALLET space ordered is sufficient.
Calculation 2: MULTIPLE PALLET SPACES (2-5)
Additional parameters:
Service level
Post Code zone
Method is Price Table: calculation looks at total quantity as a fixed price the result is 'fixed amount'.
In this instance the metrics entered will be the same, but in Column 2 the metric will look to the Total pallet spaces, set as a individual ranges between 2 and 5.
Use the filter type 'Between' to create the range.
NOTE: The END value is always one less than the actual value entered. This is why the START value is the same as the END value.
Once the metrics are setup, select the 'Rates' tab to enter the rates that apply to each of the parameters set in the Metric Table.
Calculation 3: MULTIPLE PALLET SPACES (6+)
Additional parameters:
Service level
Post Code zone
Method is Price Table: calculation looks at the quantity of pallet spaces, the result needs to be 'Multiplied by a metric'.
Metric: Total pallet spaces, and in this calculation it is the TOTAL PER ORDER
Quantity to multiple by: 1 (pallet space)
For Column 2, the metric remains as total pallet spaces, and again a range is used. Because the calculation is 6 or more, the end value can be set to number high enough to account for all possible spaces.
Conditions:
Set the condition to only use this calculation if there are 6 or more pallet spaces ordered is sufficient.
Pricing options using conditions:
Create a price list that includes both Delivery and Collection points, based on postcode zones. Once one set of calculations are created, use the DUPLICATE function to quickly add the next set of calculations, and simply modify the necessary fields.
In this example, the Delivery calculations are copied and the delivery stop is updated to Collection in both the price table and the condition.
Collection from a set location outside of the set postcode zone for collection or delivery. This can be accounted for as a collect condition.
In the event multiple rate conditions apply these will be automatically added to the order. In this example both collection and delivery rates apply:
TIP
Adding a column will reset the data table, be sure to enter all the column metrics first before adding any data to the table. Any data added to the table will be cleared if another column / metric is added.
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