Dynamic Rate Manager is designed to automate the calculation of customer rating while simultaneously simplifying freight rate management.
At the center of this solution is the concept of using costs with markups to generate a customer rate, instead of traditional customer contracts. The end result is a simplified method to support consistent and accurate customer pricing even in multi-client, multi-execution models.
This article explores the features and benefits of Dynamic Rate Manager and how it streamlines customer pricing and freight rate management through simplification, adaptability and automation. Read on to see use cases for logistics service providers.
How Does Dynamic Rate Manager Work?
Rating profiles dictate how carrier costs are uplifted to generate customer rates based on client agreements, shipment characteristics, shipping lane, accessorials, and other parameters.
Rating profile uplifts can be defined as a percentage, margin, or flat fee. They can be applied at a line haul level or by individual accessorials. This freight rate management model ensures consistent customer rates and protects margins.
The freight rate management power of Dynamic Rate Manager is that it works for both single execution loads with a single shipping order, as well as for complex multiple execution loads with shipping orders from multiple clients at varying rates.
Freight Rate Management: The Value of Dynamic Rate Manager
Simplification
Adaptability
Using costs with uplifts to generate customer rates inherently incorporates changes in market conditions. This includes higher spot pricing in a capacity-restricted lane or lower spot prices when lane capacity is easily accessible.
Automation
Visibility over margin and allocation of costs create a transparent process for customers from booking through invoice. If a carrier rate changes for any reason, customer rate recalculations are updated automatically with appropriate allocation and margin adjustmentsAdditional administrative lift not required.
Dynamic Freight Rate Management Use Cases
- Contract Management – Traditional methods for associating customer contracts with carrier contracts are tedious. Dynamic Rate Manager reduces contract management administration by eliminating the need to create individual customer contracts.
- Consolidation – Combining multiple LTL shipments from various clients into a single truckload can result in lower freight costs, but accurately managing consolidation rates can be complex. Dynamic Rate Manager creates the opportunity to uplift costs based on individual shipment dimensions to maintain fair and accurate cost allocation for every customer.
- Customer Self-Service Quoting – DRM works to support quoting and direct booking by using carrier contract cost and user-specific rate profile uplifts to present accurate and reliable customer rates, instantly.
To learn how Dynamic Rate Manager is changing the game for freight rate management, watch our webinar on-demand, “Using Dynamic Rate Manager to Support Multiple Customer Pricing Models.”
You’ll see more in-depth use cases for pooling opportunities, billing accuracy, and API integrations to prepaid and add transportation services.
