Shipper and Carrier Contract

This is a contractbetween a specific shipper and a specific carrier. A shipper can havemultiple contracts with a single carrier.

For example a shippermight set up separate contracts with the same carrier for truckloadand LTL shipments. A shipper might also define separate contractsfor U.S. and Canadian shipments.

Payor and Payee Contract

Shippers use payorand payee contracts to manage transportation charges with theircustomers suppliers or partners. The Payor and Payee contract typeis a contract between a payor organization and a payee organization.

Forexample:

• A third-party logistics provider (3PL) uses Sterling TMS to manageshipments for its customers.
• The 3PL uses a payor and payee contract to track how much thecustomer owes the 3PL. The 3PL specifies the customer as the payorand specifies its 3PL organization as the payee.
• The 3PL uses shipper and carrier contracts to manage the amountthe 3PL owes the carriers.

Freight Accrual Contract

Each shipper candefine one freight accrual contract per currency. The freight accrualcontract allows the shipper to attach planned and unplanned accessorialsthat will be included in accrual invoices. These are charges the shipperknows will be added but since they will vary in cost they cannotbe added as planned accessorials. Accrual contracts are not associatedwith any one carrier. Only shippers can view and maintain accrualcontracts.

Base Rate Contract

Each shipper can defineone base rate contract per currency. Use the base rate contract todefine your targeted rate for each shipping lane. When shippers tendera shipment or perform a Route Guide Inquiry they can compare thebase rate to the actual rates available from their carriers.

Average Rate Contract

Each shipper can defineone average rate contract per currency. An average rate contract containsan average of the rates a shipper actually paid carriers for shipments.The Average Rate Calculator is an optional module. For more informationsee the IBM? SterlingTransportation Management System AverageRate Calculator Guide.

Direct Rate Contract

Shippers can defineone direct rate contract if their organization uses the Sterling TMS optimizerto automatically select the transportation mode for unassigned orders. Sterling TMS uses the directrate contract to store the rates that the optimizer uses to compareshipping costs across modes.