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Out-of-Route Distance Rating Method

Question & Answer


Question

Out-of-Route Distance Rating Method

Answer

Out-of-Route Distance Rating Method

Use the Out-of-Route Distance rating method to definea standard accessorial for out-of-route charges for the interim stopsin a multi-stop route. Sterling TMS applies theaccessorials to multi-stop shipments.

Tip: Insteadof defining out-of-route distance accessorials you might want touse the Pro-Rated Distance rating method for your contract lanes.

Used For

Planned standard accessorials.

Unit of Measurement

Miles or kilometers.

Examples

The following example shows how Sterling TMS calculatesthe out-of-route distance:

  1. Create a contract lane from Minneapolis to Philadelphia:

    Select LaneDistance as the rating method. The direct route from Minneapolisto Philadelphia is 1200 miles.

  2. Define a standard accessorial:
    • Select Out-of-Route Distance as the ratingmethod.
    • Enter $2.00 per mile as the rate.
  3. Create this multi-stop shipment:
    • Minneapolis to Chicago
    • Chicago to Cleveland
    • Cleveland to Philadelphia
  4. Sterling TMS determinesthat the actual distance of the multi-stop route is 1270 miles.
  5. Sterling TMS subtractsthe direct route from Minneapolis to Philadelphia (1200 miles) fromthe total distance (1270 miles). The out-of-route-distance is 70 miles.
  6. Sterling TMS multipliesthe distance (70 miles) by the rate ($2.00 per mile) to calculatethe accessorial charge ($140).

The following example shows how you can specify the PercentDistance Included in Linehaul field in an out-of-routedistance accessorial:

  1. You want the first 20 percent of the out-of-route distance tobe free. Enter 120 in the PercentDistance Included in Linehaul field.
  2. The total out-of-route distance on a multi-stop shipment is 100miles.
  3. Sterling TMS calculatesthat the Percent Distance Included in Linehaul is20 miles (20 percent of 100 miles).
  4. Sterling TMS appliesthe accessorial charge to the remaining 80 miles.

The following example shows how to define a standard accessorialto calculate out-of-route distance for a multi-stop delivery. Thisexample also illustrates the impact of the Percent DistanceIncluded in Linehaul field.

In thisexample the shipment has the following attributes:

  • You do not want the carrier to charge for the first 10 percentof the out-of-route miles.
  • The distance for a single stop-delivery from Point A to PointD is 500 miles.
  • You add stops at Point B and Point C that cause the truck to travel150 extra miles.

Sterling TMS usesthe following process to calculate the charge:

  1. You define a standard accessorial:
    • Select Out-of-Route Distance as the RatingMethod.
    • Select Miles as the Unit ofMeasure.
    • Enter 110 as the Percent DistanceIncluded in Linehaul.
  2. You assign the accessorial to a contract that contains a lanefrom Point A to Point D. You enter $2.00 per mile as the price ofthe accessorial.
  3. A user in Execution creates a multi-stop shipment that goes fromPoint A to Point B then to Point C then to Point D.
  4. Sterling TMS usesthe contract from Step 2 to calculate the shipment charges.
  5. Sterling TMS determinesthe distance:
    • The direct distance from Point A to Point D is 500 miles.
    • The total distance from Point A to B to C to D is 650 miles.
    • The out-of-route distance is 150 miles (650 - 500).
  6. Sterling TMS determineshow to charge for the out-of-route miles:
    • The Percent Distance Included in Linehaul fieldis set to 110 so there is no charge for thefirst 10 percent of the out-of-route miles.
    • The total out-of-route distance is 150 miles so there is nocharge for 15 miles (10 percent of 150).
    • Sterling TMS subtractsthe 15 miles from the total. The system applies the charge to 135miles (150 - 15).
  7. Sterling TMS appliesthe $2.00 per mile charge to the 135 miles. The total accessorialcharge is $270.
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Document Information

Modified date:
08 December 2018

UID

ibm10752207