Let Consignor do the math
– gain full insight into your freight costs
It can be difficult to keep track of freight costs, when handling countless shipments every day. Rates vary from carrier to carrier and depend on your shipping agreement with each one. However, Consignor’s freight rate calculator shows you the expected rate already when a new shipment is created.
This is how it works
1. First your agreement(s) with your carrier(s) is converted into an XML file, which is loaded into your Consignor solution. This is the base upon which all calculations are done.
2. When you book a shipment, a service in Consignor will run through your carrier price agreement and based on data on the specific shipment, e.g. weight, volume, distance etc., calculate the expected price which is shown in the Consignor interface during production
3. Lastly, the calculated price is uploaded to Consignor Portal.
Knowing your expected freight rate at booking provides full cost control and allows you to manage your freight costs through financial insight. Lars Delin, Managing Director at LogistiCompany, a Swedish 4PL operator, says: ”Freight Rate Calculation is a great tool for us at LogistiCompany. It saves us time and gets accuracy in pricing”
Prices calculated based on your shipping agreement
The Freight Rate Calculation tool in Consignor calculates the expected rate based on the agreement you have with the chosen carrier. Whether your price agreement is based on distance, geographical zones, national/international shipments and/or index prices, Consignor handles the calculation and provides you with the expected freight rate. The calculated freight rate is shown for each individual consignment before you book it for shipping. Afterwards, the pre-calculated freight rates can be seen and compared to the prices actually invoiced by the carrier in the Invoice Report in Consignor Portal.
Overview of freight costs
This way, the Freight Rate Calculator can be used to gain an overview of your expenses for freight and any deviations from the expected prices. The invoiced rates are imported from the carrier directly to your account in Consignor Portal and will automatically be visible in the Invoice Report.
Save time and money
The Invoice Report in Consignor Portal enables you to keep an eye on expected and actual freight rates and it visualizes any deviations to make them easy to detect. Ville Takamaa, Reporting and Freight Settlement Specialist at ABB Finland’s Transport Management Center in Vaasa says: “For our truck and express shipments we use Freight Rate Calculation in Consignor to ease the invoice handling process. If the freight invoice matches the calculated price, then no one has to manually handle our invoices. Our invoice handling system automatically compares the prices based on order number that we have in Consignor and as a reference on the invoice. Price matches approximately for 94% of our Consignor shipments. This means that 94% of these invoices are automatically approved by the system and it gives us time to focus on finding errors or mistakes on the invoices that don’t match with our price calculation.” ABB plans to use Freight Rate Calculation for air and sea shipments as well.
Negotiate your freight rates
This way, the Invoice Report, along with the other statistics tools in Consignor Portal, can work at as basis for adjusting and negotiating freight rates with your carrier. In addition, the invoice report can provide overview of carrier products that are not currently included in the agreement with your carrier(s), as Consignor will not be able to calculate a price for these.
Work in your core business system
If you need the freight rate calculations to be exported to any other system e.g. your e-commerce, ERP or WMS system, Consignor is able to do this via API or file drop. This way you can keep working in your core business system even when using the freight rate calculator.