You can use the Sterling TMS optimizerto consolidate parcel shipments into larger shipments. Your shipperadministrator needs to perform the following tasks:

• On the Planning page in Step 1 of Shipper Configuration set up ModeSelection Thresholds for a mode of Unassigned.
• On the Edit Rating Configuration page in Step 1 of Shipper Configurationselect Parcel from the Modes toConsider list under Direct Rate.
• On the Contracts page in Step 7 of Shipper Configuration setup a Direct Rate Contract. Add a contract section for each parcelcarrier and service type for which you receive a hundredweight parceldiscount.

For example if you use two parcel carriers and two servicetypes for each carrier you will add four contract sections. You onlyneed to add contract entries for carriers and service types for whichyou receive a volume discount.

The direct rate contract is usedto store the representative rates for shipping orders directly asparcel packages. The optimizer uses these rates to compare shippingcosts across modes.

When you add the parcel sections to yourdirect rate contract you do not need to create rating lanes. SterlingTMS automatically generates the parcel rating lanes using the chargesreturned from the parcel rating system for that carrier and servicetype.

If you are not licensed to use the parcel rating systemyou could manually create rating lanes in the parcel section of thedirect rate contract. However Sterling TMS does not considerthese rates during the optimization process for unassigned orders.