Question & Answer
Question
Average Rate Configuration Settings
Answer
Average Rate Configuration Settings
Define the following average rate settings on the EditRating Configuration page:
- Average Rate Calculation Frequency
Specify how often Sterling TMS calculatesaverage rates. One month is the shortest time period allowed for calculatingaverage rates.
For example:
- Enter 1 to calculate the average ratesonce per month.
- Enter 3 to calculate the average ratesevery three months.
- Average Rate Calculator Time Period
Specify how many months to include in each average rate calculation.
Forexample:
- Enter 6 to include rates from the pastsix months in the calculation.
- Enter 12 to include rates from the pastyear in the calculation.
- Minimum Data Points to Calculate
Specify the minimum number of shipments required for SterlingTMS to calculate the average rates for each rating lane. The minimumnumber of shipments is measured for the period you specified in AverageRate Calculator Time Period.
- Use Manual Rates in Average Rates
Specify whether to include manual shipment rates in your averagerate calculations.
This field is optional.
Shipment chargesare not always calculated from the contract. In some situations acontract rate does not exist or a user manually overrides the contractrate. When a manual rate is applied to the shipment it is often aflat amount that represents the total cost of the shipment. The totalcost includes the linehaul rate fuel charges and other planned accessorials.
SterlingTMS calculates an average linehaul rate for a shipping lane. In additionto the computed linehaul rate it is common to add planned chargesto the average rate contract. These charges let shippers account forcurrent fuel costs and other planned charges.
Note: Using manuallyrated shipments in the average rate calculation can skew the resultsof an average rate inquiry. These manual rates often already includeplanned accessorial charges. When Sterling TMS adds the plannedaccessorial charges on top of that it overstates the true linehaulaverage.
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Document Information
Modified date:
08 December 2018
UID
ibm10754829